I think the cut off for free school meals is around an income of 16K, if not receiving WTC. They COULD with the new universal credit, possibly change this to include working families too, anyone around this income and below. It does seem odd to penalise working families over the others.
On the other hand many children at present getting free infant meals, are well able to pay and that is what is being cut.
I suppose towhee the breakfasts they could do that as part of their free childcare programme, combine the two? Not sure. In any case it will be the staff and preparation, clearing up etc as well as the food provided. It is a good idea though, for the poorest children. If they can get there on time.