Funded early learning and childcare 2025-2026: guidance for setting sustainable rates

Section 6: Payments for delivery of the free meal commitment

67. In line with Funding Follows the Child and the National Standard, every child attending a funded ELC session – which is any session that includes funded hours, regardless of whether they are mixed with ‘paid for’ hours – will be provided with a free meal.

68. The free meal can be served as a breakfast, lunch or dinner and should be consistent with Setting the Table; the nutritional guidance and food standards for early years childcare providers in Scotland.

69. Funding to deliver the free meal commitment will be additional to the sustainable rate for funded providers.

70. Local authorities must ensure that they are transparent as to the funding being provided to private, third sector and childminding funded providers for the delivery of the free meal commitment.

71. Local authorities have provided the payment for the free meal commitment either as a standalone rate or as a “top-up” to the hourly rate. However, the Review highlighted concerns regarding difficulties from the different approaches being taken by local authorities to these payments. In particular when a meal payment was added as a “top-up” to the sustainable-rate, some providers outlined that the full costs of meal provision would not always be fully reflected.

72. To address this, local authorities are encouraged to work towards setting a separate payment rate for the free meal commitment from 2026-27 to improve clarity and transparency for funded providers.

73. The Sustainable Rates Review also found that some funded providers were concerned over meal costs, stating that the amounts received for meals either did not currently meet the costs of delivering meals or had not increased in line with inflation (with food inflation running significantly above average inflation at points in recent years). Specific concerns were highlighted regarding the costs of delivering meals in remote and island services.

74. Local authorities may consider their current payments for the free meal commitment in the context of recent inflationary pressures, whilst noting that more robust data on current costs of delivering the free meal commitment across Scotland will be captured through the cost collection exercise.