But Northumberland County Council officers defended the service saying this is a realistic level of subsidy that must be set and the downturn is part of a national trend affecting other parts of the country.

However, the county does believe the uptake must be increased to decrease overspend within the service.

Coun Patricia Scott said: "I think this is an issue and it's not going to go away.

"I think that this is due to everything that came from Jamie Oliver.

"Some pupils were turned off by some of the food and take up was reduced by this – but we have been encouraging schools to grow their own vegetables, which has increased take-up because pupils have a sense of ownership of their food."

Coun Alan Thompson said this was an issue which was picked up on early.

"It's not exactly straight forward," he said.

"These are obligations that we have to meet. The flexibility that we think is available is not always there.

"At Ashington's Alexandra Middle School only seven pupils out of 100 pay for school meals.

"Take up is seven per cent, but we still have to provide the facility – that's an example of the position that we are in.

"There is a great deal of work going on behind the scenes to increase the take-up.

But Coun Terry Robson told county officers: "You have schools withdrawing from the service. Over £2,300 a day is lost."

Coun Anne Dale said: "There are people who do not apply for free meals even when they are entitled to them, but I have had a school meal and personally I wouldn't go back."

Coun Ian Swithenbank, chairman of the strategic services overview and scrutiny committee, added: "The issue about budget provision is we need to be satisfied that everyone has done all that can be done."