Future options of the school milk subsidy scheme (SMSS) in Wales

Welsh Government are seeking views on the future of the school milk subsidy scheme (SMSS) in Wales.

This consultation asks for views on whether a dedicated school milk scheme should continue, and if so, how it should operate in the future. It also seeks views on the potential impacts of discontinuing the scheme and the extent to which existing school food and drink provision could continue to support learners' access to milk.

The School Milk Subsidy Scheme has been in operation since 1977 and currently provides free milk to learners in Reception to Year 2 and subsidised milk to learners in Years 3 to 6. The scheme is currently administered by the Rural Payments Agency (RPA) on behalf of the Welsh Ministers.

The current delivery arrangements are due to come to an end from April 2027. This provides an opportunity to review the future policy approach to milk provision in schools.

Since the scheme was introduced, the school food landscape in Wales has changed significantly. Primary age learners now benefit from a wider package of support, including Universal Primary Free School Meals (UPFSM) and free breakfast provision, all underpinned by the recently updated Healthy Eating in Schools (Nutritional Standards and Requirements) (Maintained Primary Schools) (Wales) Regulations 2025.

As a result, access to milk is no longer solely dependent on the SMSS and the updated Healthy Eating in Schools regulations require the food and drink served in maintained schools to reflect the latest dietary advice. The key consideration is whether there remains a need for a dedicated school milk scheme alongside these wider school food programmes, which offer alternative opportunities to access milk throughout the day and are designed to reflect the latest dietary advice.

The review provides an opportunity to consider the future role of milk provision within wider school food policy objectives, including improving children's diets, supporting health and well-being, promoting healthy eating behaviours and ensuring a coherent approach to food provision in maintained schools.

The Welsh Government is considering two possible options for the future of dedicated milk provision in schools.

Option 1: introduce a new Welsh School Milk Scheme

This option would replace the current SMSS with a new grant-funded model delivered through the Local Authority Education Grant (LAEG), alongside the Universal Primary Free School Meals (UPFSM) process. Eligible learners would continue to receive free or subsidised milk, broadly reflecting current arrangements, while administration would be simplified and aligned with wider school food programmes.

The scheme would continue to:

• operate on a demand-led basis
• fund the full cost of milk for Reception to Year 2 learners and subsidise milk for Years 3 to 6 learners
• allow claims for up to 250ml per pupil per day
• retain the current 3p per serving administration payment for Reception to Year 2 claims, subject to grant conditions and evidencing requirements

Key changes would include:

• funding being paid through the LAEG, with local authorities becoming the sole route through which claims are made to Welsh Government
• local authorities determining delivery arrangements with schools and suppliers
• monitoring and assurance being delivered through grant conditions rather than regulatory inspection powers
• the future eligibility of independent schools

Local authorities would administer the funding through a proportionate claims and monitoring process. The proposal would remove the current ability for schools and suppliers to claim directly from the scheme. Participation would therefore depend on local authorities accepting and administering the grant.

Option 2: Discontinue the School Milk Subsidy Scheme

This option would end the dedicated milk scheme. Learners would continue to have opportunities to access milk through existing school breakfast and lunch provision, although access would depend on participation in those services.

As part of the development of any replacement scheme, Welsh Government is also considering whether eligibility should be restricted to maintained schools (including maintained special schools), aligning the scheme with other Welsh Government school food programmes.

Independent schools are currently eligible under the existing arrangements, although only one independent school in Wales is known to participate in the scheme. We welcome views, and any potential impacts of future eligibility arrangements.

We want to hear from learners, parents and carers, schools, local authorities, suppliers, representative organisations and anyone with an interest in school food and drink provision.

Your responses will help us understand the potential impacts of the options under consideration and will inform decisions on the future of school milk provision in Wales.

Submit your comments by 04January 2027, in any of the following ways:

• complete our online form
• download, complete our response form and email: FoodinSchool@gov.uk (please include the reference WG55260 in the subject of your email)
• download, complete our response form and post to:

Consultation: WG55260
Food in Schools Team
Equity in Education
Welsh Government
Cathays Park
Cardiff
CF10 3NQ

Questions 1 to 8 for all respondents

Question 1

To what extent do you think that the existing School Milk Subsidy Scheme provides sufficient access to milk or suitable alternatives during the school day?

Question 2

What benefits, if any, do you think would result from continuing a dedicated School Milk Scheme?

Question 3

What benefits, if any, do you think would result from ending the dedicated School Milk Subsidy Scheme?

Question 4

If the School Milk Subsidy Scheme ended, how likely or unlikely is it that learners would continue accessing milk through existing breakfast and lunch provision?

Question 5

What impacts, if any, do you think would arise if the School Milk Subsidy Scheme was discontinued?

• Reduced milk consumption.
• Reduced access for some learners.
• Impacts on learner health and well-being.
• Impacts on disadvantaged learners.
• Impacts on schools or local authorities.
• Impacts on suppliers and the dairy sector.
• No significant impacts.
• Other.

Question 6

Which groups of learners, if any, do you think would be most affected by discontinuing the School Milk Subsidy Scheme?

• Learners from low-income households.
• Learners eligible for free school meals.
• Learners with additional learning needs (ALN).
• Learners attending special schools.
• Learners who bring packed lunches.
• Learners who do not attend breakfast clubs.
• Learners in rural areas.
• No particular groups would be affected disproportionately.
• Other.

Question 7

Which option do you prefer?

• Continue a school milk scheme through a new Welsh Government grant-funded model (Option 1).
• Discontinue the School Milk Subsidy Scheme and rely on existing breakfast and lunch provision for access to milk during the school day (Option 2).
• No preference.
• Unsure.

Question 8

If school milk continues to be provided through a new Welsh Government scheme, should eligibility continue to include independent schools, or should the scheme be limited to maintained schools in line with wider Welsh Government school food policies?

• Eligibility should include maintained schools and independent schools.
• Eligibility should include maintained schools only.
• No preference.
• Unsure.

Questions 9 to 12 for local authority respondents only

Question 9

What operational, financial or procurement impacts, if any, would continuing the milk provision through a new scheme have for your authority?

Question 10

What actions, if any, could help mitigate any adverse impacts?

Question 11

What operational, financial or procurement impacts, if any, would discontinuing the provision have for your authority?

Question 12

What actions, if any, could help mitigate any adverse impacts?

Question 13 for school staff only

Question 13

If the School Milk Subsidy Scheme was discontinued, would your school seek other arrangements to continue providing milk beyond any existing breakfast or lunch provision?

Questions 14 to 16 for supply chain participants only

Question 14

What impact, if any, would continuing a school milk scheme through a grant-funded model delivered via the Local Authority Education Grant (LAEG) have on your organisation or business?

Question 15

What impact, if any, would discontinuing the SMSS have on your organisation or business?

Question 16

What mitigating actions could Welsh Government, local authorities or schools take to minimise any adverse impacts on suppliers and the wider dairy sector?

Mandatory questions for all respondents

Question 17

What, in your opinion, would be the likely effects of ceasing the SMSS on the Welsh language? We are particularly interested in any likely effects on opportunities to use the Welsh language and on not treating the Welsh language less favourably than English:

• Do you think that there are opportunities to promote any positive effects?
• Do you think that there are opportunities to mitigate any adverse effects?

Question 18

In your opinion, could the SMSS be formulated or changed so as to:

• have positive effects or more positive effects on using the Welsh language and on not treating the Welsh language less favourably than English, or 
• mitigate any negative effects on using the Welsh language and on not treating the Welsh language less favourably than English?

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