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The government has announced new measures allowing parents to use loyalty points and vouchers to purchase infant formula in supermarkets as part of efforts to make baby milk more affordable. This initiative comes amid a significant rise in the cost of infant formula, where the price for a typical tin now ranges from £12 to £15. Alongside this, the government has accepted proposals from the competition watchdog designed to prevent parents from being compelled to buy more expensive brands, thus promoting price transparency and affordability.
These changes aim to boost parents’ confidence in opting for lower-cost formula products. According to estimates from both the government and the consumer watchdog, families who either cannot or choose not to breastfeed could save up to £500 annually by selecting more affordable options. Charitable organizations have raised concerns that some lower-income families have resorted to diluting formula or sacrificing other essential expenditures due to the high cost of baby milk. The new guidelines will provide clearer nutritional standards for infant formula sold in the UK and encourage retailers to offer discounts without violating existing rules.
Currently, the infant formula market is regulated in a manner that bans promotions such as discounts and loyalty points, similar to regulations on tobacco and lottery tickets. These restrictions are intended to promote breastfeeding, which the NHS regards as healthier for infants. Nevertheless, a February interim report by the Competition and Markets Authority (CMA) highlighted that these policies unintentionally limited competition on price, causing consumers to pay more. The CMA’s findings revealed that the price differences between brands can save families around £540 per year if they choose cheaper formulas. The market is dominated by just three manufacturers—Danone, Kendal, and Nestle—who control about 90% of sales.
During a statement at Prime Minister’s Questions, Sir Keir Starmer criticized the inflated costs parents have faced and explained the government’s commitment to support affordable infant formula access. He said, “We will take action to give parents and carers the confidence to access infant formula at more affordable prices… with clearer guidance for retailers and by helping new parents use loyalty points and vouchers.” Health Secretary Wes Streeting echoed this sentiment, emphasizing that it’s unfair for manufacturers to exploit parents’ concerns through misleading packaging. Various advocacy groups, such as UNICEF’s Baby Friendly Initiative and the infant feeding charity Feed, have welcomed the announcement as a positive step toward addressing affordability and reducing stigma around infant formula use.
The government has also agreed in principle to further recommendations from the CMA, including the requirement for infant formula products to be displayed together and clearly separated from other types of formula milk. Moreover, there will be efforts to better define what constitutes advertising for these products. Additional proposals involving restrictions on unsubstantiated claims on formula labels and extending advertising prohibitions for follow-on formulas are still under consideration. The CMA has confirmed its readiness to assist devolved governments and agencies in implementing these reforms, with authorities across all four UK nations endorsing the government’s response
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