Free school meals expansion grant : funding guidance for local-authority-maintained schools, academies and free schools
From the start of the 2026 to 2027 academic year, the Department for Education (DfE) is delivering an expansion to FSM eligibility to include all pupils from households in receipt of Universal Credit. There will then be 2 categories of FS
- Targeted FSM, which continues to be based on the existing £7,400 income threshold
- Expanded FSM, which will apply to meals only, covering pupils who do not qualify for Targeted FSM, but who are in households in receipt of Universal Credit
The 2026 to 2027 FSM expansion grant will provide schools with additional funding to help them meet the costs of providing more pupils with free meals before the lagged funding system has caught up.
The 2026 to 2027 FSM expansion grant will be calculated based on the difference in FSM eligibility between the October 2025 and October 2026 census, at a per pupil rate of £505 per annum. As funding will be paid for 7 months of the 2026 to 2027 financial year (from September 2026 to March 2027), the pro rata rate for that period will be £295 per pupil.
Allocations and payments
Allocations will be published in February 2027 and payments will be issued to:
- local authorities for their maintained schools in February 2027
- academies in March 2027
Academies will continue to receive funding through the FSM expansion grant from 1 April to 31 August 2027, at a pro rata rate of £210 per pupil.
From 2027 to 2028 onwards, mainstream schools will receive funding for both targeted and expanded FSM pupils through their core funding allocations. This will come into effect from:
- 1 April 2027 for local-authority-maintained schools
- 1 September 2027 for academies
Special and AP schools
The FSM expansion grant funding for special and AP schools will be allocated to local authorities. They will pass on the funding to special and AP schools if they incur an additional cost in providing a free meal for a pupil who falls within the expanded FSM pupil cohort. The same school census data and per-pupil rate will be used as for mainstream schools. The funding should be passed on as a supplement to the high needs top-up funding that local authorities allocate in respect of individual pupils they place at these schools. Pupils at special and AP schools who are temporarily attending or attending part-time, and are sole or main registered at another school, will attract FSM funding to that other school. The school they are registered at should therefore pass the relevant funding to the special or AP school as appropriate.
Implications of the free school meals expansion on Pupil Premium
Pupils who stop being eligible for FSM when transitional protections end will still receive disadvantage funding through the pupil premium and the National Funding Formula (NFF), since they will still form part of the Ever 6 FSM cohort. Pupils who were eligible for FSM before the expansion will continue to be part of the Ever 6 FSM cohort after the expansion. That includes any pupil whose household income increases after the expansion, such that they either lose FSM eligibility altogether or become eligible for FSM through Expanded FSM. Such pupils will remain part of the Ever 6 FSM cohort for 6 years.
Implications of the free school meals expansion on Universal Free School Meal grant
Temporary revisions to the allocation of the UIFSM grant will be made to reflect the fact that infants currently receiving UIFSM will become eligible for the new FSM entitlement and receive funding in respect of the new entitlement instead. Each year, the UIFSM grant is paid in one instalment. This is comprised of a provisional allocation for the next academic year based off infant take-up of meals in the current academic year, and a final allocation for the current academic year based off infant take-up of meals in the current academic year. The provisional payment for the UIFSM grant in 2026 to 2027 will be adjusted downwards by 20%, based on departmental estimates of infant pupils becoming eligible for the new FSM entitlement. This is not a reduction in overall funding, but instead a transfer between 2 different funding streams.
It is crucial that schools capture all eligible pupils through their October school census return for this to be accounted for in their funding allocations, as only pupils whose eligibility has been verified between 1 June and 1 October 2026 will attract funding in 2027 to 2028.
Further details and queries can be supported by following the guidance here - Free school meals: guidance for local authorities, local-authority-maintained schools, academies and free schools - GOV.UK and here Pupil premium: overview - GOV.UK
If schools require further guidance after visiting the DFE website these can be directed to education-finance@shropshire.gov.uk
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