COVID-19: Free School Meals Voucher Scheme
Closed
What the inquiry looked at
“On 31 March 2020, as part of its response to the COVID-19 pandemic, the Department for Education launched a voucher scheme to help give the 1.4 million children in England eligible for free school meals continued access to meals while they were not attending school. Schools joining the scheme can order shopping vouchers worth £15 per week for each eligible pupil. Parents can spend the vouchers at one of eight (expanded from an initial six) supermarket chains. This inquiry will examine the findings of the NAO investigation into the free school meals voucher scheme , including the Department’s objectives and choice of contractor to run it; the scheme’s performance; and its forecast and actual costs. The Committee will question senior officials at the Department for Education on the operation of the free school meals scheme, and whether it is meeting its objectives and providing value for money. If you have evidence on these issues please submit it here before 6.00pm on Thursday 10 December.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The Department for Education (the Department) and its contractor, Edenred UK Group Limited (Edenred), set up the national voucher scheme quickly, during March 2020, so that children eligible for free school meals could continue to receive support while schools were closed to most pupils. But there were serious problems in the early weeks of the scheme and the Department recognises that, even in the short time it had, it should have done more testing before the scheme went live. In those early weeks, Edenred’s systems failed to cope with the demand for vouchers and the volume of telephone calls and emails. Schools and parents found it difficult to access Edenred’s website and to get answers from Edenred to their queries. There were unacceptable delays in Edenred processing orders from schools and getting vouchers to families. Edenred took action to boost the capacity of its systems and we recognise that performance improved after April 2020. The Department and Edenred have now apologised to schools and families for the problems and inconvenience they encountered in the early stages of the scheme.
The Department focused on firefighting the problems with the voucher scheme and did not actively manage its contract with Edenred. The Department extended the contract twice, increasing its value fivefold, from £78 million to £425 million, but it failed to take the opportunities those extensions presented to renegotiate the terms and secure better value for money for the taxpayer. The Department did not make use of the open book arrangement in the contract until the scheme had finished, and only then established how much profit Edenred had made from the scheme. It declined to share with us details of Edenred’s profit on the grounds of commercial confidentiality.
The extensions to the contract should have enabled the Department to consider how it could maintain the scheme as a standing resource and to tender with other suppliers.
After our evidence session on 17 December schools were physically closed to most children again on 5 January with 24 hours’ notice and the scheme was not activated again until later in January. We have not had the opportunity to probe why there was a delay in re-establishing the existing scheme at pace when schools and parents already being familiar with using the scheme.
What the government said
The government responded on 3 September 2021. The deadline was 5 April 2021.
The government states that it agrees with the Committee's recommendations on user testing and call centre capacity, management information, geographic coverage and data sharing, but disagrees with the recommendation on commercial skills and renegotiating terms.
- On user testing and call centre capacity, the government agrees and says the recommendation is implemented; it notes the department "could not undertake the level of user testing that would usually occur" in 2020, and that Edenred had an experienced external customer service firm in place when the 2021 scheme launched.
- On commercial skills, the government disagrees. It says a re-negotiation of some terms "was not practicable" given the speed required, and that the department is "confident that significant value" was obtained.
- On management information, the government agrees. It says that in 2020 the department "did not require Edenred to provide all of the performance measures specified in the contract", and that complete daily management information was gathered from 18 January 2021.
- On data sharing with the Department for Work & Pensions, the government agrees and states that the department "will continue to work with DWP to consider if and where data sharing may improve the support available" for eligible families.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 26 November 2020 to 3 September 2021. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 17 Dec 2020
- Report 5 Feb 2021
- Government response 3 Sep 2021
- Correspondence 2 letters
What it recommended 3 recommendations · 26 conclusions
2The Department was surprisingly unconcerned about whether Edenred was profiting from the voucher scheme at...
3The Department did not have the information it needed to manage Edenred’s performance and understand...
4The Department did not do enough to assess how far families had to travel to...
5Limitations in the data shared between the Department and the Department for Work & Pensions...
1On the basis of a report by the Comptroller and Auditor General, we took evidence...
6The Department awarded a contract to administer the voucher scheme to a private contractor, Edenred.7...
7The other options the Department had considered, but ruled out, were: to make cash transfers...
8The Department noted that an advantage of a voucher scheme was that it made it...
9Schools had a choice whether to use the national voucher scheme or to make local...
10In written evidence, the National Association of Head Teachers told us that many school leaders...
11Schools taking part in the scheme ordered electronic codes (eCodes) online that could be converted...
12The Department told us that the vast majority of families had easy access to participating...
13The Catholic Education Service wrote to tell us that families in remote, isolated communities struggled...
14Edenred told us that setting up the voucher scheme in two weeks meant that it...
15Over 11,000 school administrators registered immediately after the voucher scheme opened.
16The Department acknowledged that there was a period early in the scheme when parents and...
17The number of calls each day to Edenred’s telephone helpline increased rapidly, from 727 on...
18In terms of things it could have done better, the Department said that, if it...
19The Department recognised that the instructions for schools were not clear enough at the start...
20Edenred told us that it discovered, after implementing an improvement to its platform at the...
21The Department accepted that there were many things about the scheme that could have been...
22The Department told us that, at the start of the scheme, it started collecting management...
23The Department did not systematically collect data on Edenred’s processing times, or how long it...
24In April 2020, schools had to wait over 42 minutes on average to access Edenred’s...
25The Department told us that it spent £384 million on the voucher scheme, in addition...
26The Department told us that it was used to managing contracts, and that its policy...
27The Department paid Edenred the face value of eCodes issued to families, less any cancelled...
28Edenred generated revenue from the scheme by buying vouchers from supermarket chains at a discount...
29The contract included an open book arrangement giving the Department access to information about Edenred’s...
Evidence
Oral evidence sessions 1
- 17 Dec 2020Covid-19: the free schools meals voucher scheme3 witnesses, listed belowparliament.uk ↗
Who gave evidence 3 witnesses
- Johann VaucansonCEO, Edenred UK
- Sarah LewisDirector, Early Years and Schools Strategy, Department for Education
- Susan Acland-HoodPermanent Secretary, The Department for Education
Correspondence 2 letters
- 16 Apr 2021Correspondence from Susan Acland-Hood, Permanent Secretary, Department for Education, re Free school meals packages, 24 March 2021
- 18 Jan 2021Correspondence from Susan Acland - Hood, Permanent Secretary, Department for Education, re PAC hearing on 17 December 2020 - Investigation into the Free school meals voucher scheme, dated 13 January 2021