Guidance

Calculate your school milk subsidy - milk consumed before 1 August 2017

Find out how much milk or yoghurt you can claim for under the scheme and how to price subsidised milk in a school.

This guidance was withdrawn on

This page has been withdrawn because the information is no longer current. For information about the scheme for milk consumed after 1 August 2017 read School Milk Subsidy Scheme.

This guidance is for milk consumed before 1 August 2017

Different guidance applies for milk consumed from 1 August 2017

Calculate your maximum entitlement

Eligible pupils may receive up to 250ml of subsidised milk products each school day.

To work out the maximum entitlement, you should use this calculation:

Calculate your maximum entitlement
The number of school days when curricular education takes place Multiplied by the number of children on the school roll Multiplied again by 0.00025 (this represents the maximum daily allowance of 250ml expressed in kilolitres) Round to 3 decimal places

You can simplify the number of children on the school roll by using the number of pupils established in the most recent schools’ census, taking no account of absences.

You must only claim for quantities that were actually distributed to eligible schoolchildren during the claim period, and you mustn’t exceed the maximum entitlement for that claim period.

You must make sure that you do not claim in excess of the maximum entitlement for any school, even if your total claim is within the overall maximum entitlement.

Subsidy rates

The EU aid rate is €186.945 per kilolitre for milk and yoghurt.

These rates are converted to sterling using the exchange rate applicable on the first day of the month when the claim period starts.

The EU aid rate is topped up nationally for pupils in primary education and children over 11 receiving primary education in special schools.

This top up rate is £39.855 per kilolitre.

Monthly subsidy rates

Every month, RPA publishes the subsidy rates which you can use to calculate the amount of subsidy you could receive:

For children in Key Stage 1 education in Wales, the full cost of milk is reimbursed, plus a contribution to administration costs.

For children under 5 who are regularly attending a nursery or other pre-school establishment, the full cost of up to 189ml of milk per pupil can be claimed under the Nursery Milk Scheme.

Milk fully paid for under the Nursery Milk Scheme isn’t eligible for the EU subsidy.

Which pupils can be charged

Schools must only use the subsidy provided to reduce the cost of the product for pupils.

A subsidy is considered to have been passed on to pupils when milk products are provided free of charge.

If products are included in school fees, you must ensure that the amount of aid is reflected in the fees charged to the pupils who are benefiting from the subsidy.

Where an extra fee is charged for food or snacks on top of the fees, you should be able to clearly demonstrate that the saving is being passed on.

If a price is paid directly by the pupils, or the products are included as part of a set-price meal, you must ensure that the amount of aid is reflected in the prices charged.

Reductions made as a result of the subsidy should be clearly shown on school fee bills or receipts or mentioned in school literature.

In all these cases, you must have evidence that demonstrates how selling prices are worked out.

All the prices charged must also comply with the maximum price rules.

Maximum price rules

You must ensure that no more than 7pence per serving is charged above the cost of the milk product, once the subsidy has been taken into account.

Calculate the maximum selling price
Purchase price paid to the supplier including any discounts but excluding any delivery charges Minus subsidy Plus up to 7pence per serving administration and distribution charge to cover the costs of operating the scheme Equals price charged to pupil

The selling price calculation can be applied to a term or a whole school year.

There may be occasions where you opt for a whole school year calculation and find later that your calculations weren’t correct; for example, because there was a change in purchase price of the milk.

In these instances, you can return to making the calculation on a termly basis and adjust it the following term to recover any loss or profit you’ve made previously.

You’ll need to convert your claim into kilolitres.

Products won’t be eligible for the subsidy if the maximum selling price is exceeded or of the administration and distribution charges can’t be justified.

Administration and distribution charges

You must be able to:

  • justify any administration and distribution charges made to the pupil
  • show that these charges do not exceed the markup on similar products

Some costs may be incurred centrally by a claimant or local authority. Others may be paid for by a maintained school’s delegated budget. In these cases, you’ll need to agree locally how the charge proceeds will be shared and be able to show this in your records.

The purchase price for calculations

The purchase price you use to calculate your selling price mustn’t include any overheads, delivery charges or other incidentals.

If supplies are bought at different prices over the period you’re claiming for, you can use an average price in your calculation. Just divide the total cost of the supply by the total volume.

Relevant regulations

Regulation (EU) No 1308/2013 of the European Parliament and of the Council - Articles 22, 26 to 28, and 217

Council Regulation (EU) No 1370/2013 - Article 6.

Commission Regulation (EC) No 657/2008 laying down detailed rules for applying Council Regulation (EC) No 1234/2007 as regards Community aid for supplying milk and certain milk products to pupils in educational establishments

The Milk and Milk Products (Pupils in Educational Establishments) (England) Regulations 2008 No. 2072 as amended by the Single Common Market Organisation (Consequential Amendments) Regulations 2013 No. 3235

The School Milk (Wales) Regulations 2008 No. 2141(W. 190) as amended by the School Milk (Wales) (Amendment) Regulations 2009 No. 108 (W.21) and by the Single Common Market Organisation (Consequential Amendments) (Wales) Regulations 2013 No. 3270 (W. 320)

The Milk and Milk Products (Pupils in Educational Establishments) (Scotland) Regulations 2001 No. 162 as amended by the Milk and Milk Products (Pupils in Educational Establishments) (Scotland) (Amendment) Regulations 2011/82 and by the Single Common Market Organisation (Consequential Amendments) Regulations 2013/3235

Published 31 March 2014
Last updated 4 May 2017 + show all updates
  1. School milk rates for May added

  2. The February 2017 School Milk Rates have now been published on GOV.UK.

  3. Added new subsidy rates

  4. Updated School milk rates published.

  5. Updated Milk (whole/semi) Subsidy Rates 2016 - 17 now online.

  6. October 2016 School milk rates now on .GOV.UK.

  7. Updated School milk subsidy rates.

  8. School Milk rates updated for May

  9. January 2016 rates added

  10. Updated school milk rates for December 2015

  11. Updated school milk subsidy rate

  12. October 2015 subsidy rates added

  13. Updated school milk rates for September 2015

  14. Updated school milk rates for August 2015

  15. Updated School Milk rates for June 2015

  16. Updated the School Milk rates for May 2015

  17. Updated School milk rates

  18. Updated rates for March 2015

  19. Subsidy rates for February added

  20. Rates for January added

  21. Updated rates added

  22. Milk (Whole/Semi) Subsidy Rates 2013-14 Document attached

  23. First published.