Inflated bills for nursery school free milk prompt review

Figures show that middle men are charging around double the retail cost, meaning the Government is spending 92p on a pint of milk while most consumers can buy a pint for 45p.

A loophole in the system means the Government is obliged to pick up the bill, regardless of cost, submitted by firms that are acting as schools’ go-between with suppliers.

Last year, it was estimated that the difference in price costs taxpayers an extra £10m a year.

One option that Ministers are examining is to set up a system of national suppliers to cut out the middle men.

Another suggestion is to cap the price that childcare providers can claim for milk. The other option is to issue e-vouchers to providers.

Public Health Minister Anne Milton said: “Milk has many benefits to children’s health and is important for their development – we are committed to continuing to provide free milk for all under-fives.

“But the current scheme has not changed operationally since it began and costs have ballooned.

“In four years, costs have jumped from £27m in 2007 to a staggering £53m in 2011. Estimates show that modernising how the scheme operates could save as much as £20m each year.

“Everyone is encouraged to take part in this consultation and share their views on the proposed changes.”

Plans to alter provision have proved politically explosive for the Conservatives in the past. In 2010 Prime Minister David Cameron slapped down suggestions by Ms Milton that the supply would be scrapped, saying he “did not like” the idea. In 1971 Margaret Thatcher earned the nickname “milk snatcher” for ending free school milk for the over-sevens while Education Secretary.

Every child under five receives a third of a pint of free milk at school each day and the nurseries claim back the cost from the Government.

Shadow public health Minister Diane Abbott said: “Trying to cut the cost of this scheme may end up snatching milk away from the country’s children, disproportionately affecting the poorest.

“In a recession, which has been made in Downing Street, when there is a squeeze on families, it is the wrong time for risks with our children’s health.”

The School and Nursery Milk Alliance said that any change to milk schemes must be best for children and not financially driven.

The organisation said some of the suggestions put forward by the Government could have a negative impact on the scheme.

Jon Thornes, interim chairman of the organisation, said: “Drinking milk in schools, nurseries and while in the care of childminders is vital in helping children to develop important nutrition and social habits.

“We will be engaging fully with the consultation to ensure the scheme continues to benefit as many children as possible.”