Thousands of low income families rely on Free School Meals, but the means-testing rules can create a real disincentive to work; unfortunately, this is set to get even worse when the new Universal Credit is introduced in 2013. Currently, families that get means-tested out of work benefits like Jobseeker’s Allowance qualify for Free School Meals for any children they have in school.
Low income working families can qualify, but only if they work under 16 hours per week (24 hours for couples) and earn less than £16,190 per year. This can create a substantial work disincentive since working families can lose the key benefit (worth around £370 per child per year) no matter how little they earn. In fact, of families in receipt of Free School Meals, who The Children’s Society surveyed for our report “Fair and Square: The future of Free School Meals” six out of ten said that the threat of the loss o f Free School Meals has a direct impact on their decisions about moving into work or taking on additional hours.

