Free milk for nursery children under review

Currently 1.5 million children under five, who get at least two hours of childcare a day, receive 189ml of milk for free under the scheme, which has been running since the 1940s.

The scheme, which covers 55,000 childcare settings in England, Scotland and Wales, reimburses childcare providers for the full cost of buying any milk they give to children free of charge.

Over recent years the prices claimed for milk supplied under the Nursery Milk Scheme have gone up considerably, with some claims reaching 92p a pint.

The Department of Health has found that some specialist providers of milk who act as ‘middlemen’ for nurseries have been claiming back on their behalf double the amount of money they should be.

As a result, the total cost of the scheme has increased from £27m in 2007-2008 to £53m in 2010-2011. The Department of Health estimates that this figure could escalate to £76m by 2016.

The consultation on the scheme’s future is proposing three cost-cutting options:

• Capping the price that can be claimed for milk. There is currently no set limit on the price that can be claimed back. Under this option, an upper limit will be introduced on the price claimed.

• Issuing e-voucher cards. Childcare providers will have to state how many children would normally be attending for at least two hours a day. Then they would be credited with a monthly payment.

• Direct supply and delivery of milk under a central contract. This would be similar to the way the school fruit and vegetable scheme is run. Childcare providers will be registered with the scheme at an agreed price per pint.

The shadow health minister, Diane Abbott, warned, ‘Trying to cut the cost of this scheme may end up snatching milk away from the country's children, disproportionately affecting the poorest.’

In 2007-2009, the average price of milk was 36p for England and Scotland, and 35p for Wales. Today, a pint of milk at Tesco’s is as little as 49p.

The Department of Health will consult with parents, carers, childcare providers and early years settings, among other groups and organisations.

In August 2010, Prime Minister David Cameron overturned a proposal to scrap the provision of free milk for the under-fives.

A review of the free milk scheme was announced last November. The consultation is now open and it runs until 11 September.

Whatever the outcome, the Department of Health will be asking all childcare providers to confirm their details so they are up to date. It also wants to reduce the time limit for making a claim for milk supplied under the scheme from two years to six months.

Neil Leitch, chief executive of the Pre-school Learning Alliance, said, 'We are pleased that the Government is looking at ways to improve the free nursery milk scheme as not so long ago it had considered withdrawing the scheme altogether.

'The nursery milk distribution scheme was so administratively burdened that until recently many day nurseries and pre-schools were not accessing it.

 'We currently work in partnership with a well-established and respected milk supplier and encourage our members to choose their suppliers carefully. We support any effort by Government to look further into any inconsistencies in the system by less-reputable milk suppliers.

'We are disappointed that some milk providers are abusing the system. While we don’t condone profiteering, we are far from convinced that a single provider for early years settings is the answer, as the Government proposes.

'We would advise any early years setting looking to secure a milk supplier to consider their requirements carefully and choose wisely and to make sure that they understand the terms and detail of any contract.'

To take part in the online consultation visit www.consultations.dh.gov.uk/nurserymilk/nextsteps or email nurserymilk@dh.gsi.gov.uk