Rachel Reeves has said she “doesn’t recognise” reports suggesting ministers are looking at cutting universal free school meals for the youngest children.
The chancellor is expected to announce spending cuts for some government departments in her spring statement to the Commons on Wednesday.
Education secretary Bridget Phillipson is reportedly looking to make £500 million in cuts to the schools budget, and has apparently floated cutting universal free school meals as a way to reduce costs.
Free school meals at lunchtime are currently available to all infant children (pupils who are in reception and years one and two) in state-funded schools in England.
Ms Phillipson has suggested making them means-tested instead, bringing them in line with the policy for older children, The Times reported.
The suggested plans were part of negotiations with the Treasury ahead of the spending review, and other proposed cuts included stopping funding for free period products and axing some dance, music and PE schemes, the paper reported.

The reports have been criticised by MPs, unions and campaigners who said any move to remove universal free school meals would be a “cruel decision” that would leave students struggling and hungry in school.
However Ms Reeves told broadcasters on Monday: "This government is rolling out free breakfast clubs in all primary schools from April. I don't recognise those claims that the government are looking at means-testing free school meals.
"In fact, this government are ensuring that all children get a good start to the day with a breakfast club, helping working parents and helping all children get a good start in life. That is what this government is determined to do after 14 years of Conservative failure."
According to estimates published by the Department for Education, there were 1.6 million infant pupils recorded as taking a free school meal under the universal scheme last year. Of these, 1.3 million would not normally be eligible for free school meals.
Labour MP Diane Abbott described the reported cuts as “austerity being imposed on the very youngest”.
And Kim Johnson MP, Labour MP for Liverpool Riverside, said: “Scrapping universal free school meals for some infants would be a cruel and short-sighted decision, leaving more children hungry and struggling in school.”
Liberal Democrat education spokesperson Munira Wilson MP said “children cannot be expected to learn on empty stomachs”. She said that if government went ahead with the proposed plan “they should hang their heads in shame”.
Paul Whiteman, general secretary of school leaders’ union NAHT, said: “After a decade of funding cuts there are no more savings to be found. Any reduction in funding will therefore have a direct impact on the education that schools can provide, and it is pupils that will suffer.
“We strongly urge the Chancellor to think again before asking children and young people to take on the burden of cuts - they deserve better”.

Judith Gregory, chair of LACA, a professional body for school caterers and suppliers, said that already “too many children are slipping through the cracks” of means-tested meals.
She added: “This scheme has not only reduced the stigma around free school meals but has also instilled healthy eating habits from an early age and fostered better socialisation among children.
“Scrapping universal free school meals would leave the most vulnerable children at risk.”
Professor of social mobility at the University of Exeter, Lee Elliot-Major, said: “If we are serious about breaking down barriers to opportunity and stimulating future economic growth then extra funds must be distributed to the millions of pupils who are facing hardship outside the school gates, not just those on free school meals.
“We urgently need a review of the billions spent through the pupil premium - to ensure that this is effectively allocated to level the education playing field.”
The Department for Education said: “This government has made significant additional investment in education across early years, schools, and colleges, alongside steps to stabilise the financial sustainability of universities.
“We will continue to support teachers and education leaders to use funding as efficiently as possible, while continuing to deliver better life chances for children and young people across the country through our Plan for Change.”
Hasn’t Reeves got enough on her plate without a row about free school meals?
Chancellor does not ‘recognise’ reports of cutting universal free school meals
Spring statement will not ‘alter the basics’, PM insists when questioned on cuts
Student loan claims probed after TikTok videos spur fake applications
Post-Covid anxiety is key driver in children skipping school, pilot programme finds
Education secretary to review school smartphone bans amid calls for action