New government action makes baby formula more affordable

The Government will do more to help parents access baby formula “at more affordable prices,” the Prime Minister has said.

Speaking at Prime Minister’s Questions, Sir Keir Starmer told the Commons the plans would help parents save up to £500 before a child’s first birthday.

He said: “For too long, parents have been pushed into spending more on infant formula than needed, told they’re paying for better quality, and left hundreds of pounds out of pocket. I can announce today that we’re changing that.”

The Prime Minister said the plan built on the Government’s “action to lift half a million children out of poverty” and ahead of the Government Child Poverty Strategy.

The reforms focus on making it easier for families to choose lower-priced infant formula that still meets all nutritional standards.

The change is intended to help those who cannot or choose not to breastfeed their babies and alleviate child poverty.

Regulators proposed sweeping changes for the baby formula industry in February after finding many brands cost more than the weekly value of people’s benefits, leading some parents to forgo food to buy the product.

The Competition and Markets Authority (CMA) said issues like high prices and branding in the industry are leading to “poor outcomes” for parents, who could be saving about £300 a year by switching to lower-priced products.

Officials said the NHS could have its own non-brand baby formula, in a bid to help drive prices down.

It also said existing products should be provided in non-branded containers in hospitals to reduce brand influence while parents are in a “vulnerable” setting.

The CMA said packaging should clearly display nutritional information, while any claims that cannot easily be checked by parents should be banned.

It said this would make it easier for parents to pick between brands.

Regulators had previously pointed to prices surging by 25% over the previous two years, while consumers have borne the brunt of rising factory costs.

The industry is dominated by just three companies – Danone, Kendal and Nestle, which make up about 90% of the market.

However, the CMA stopped short of recommending a price cap, which it had said it was looking into last year.

In a statement, Health Secretary Wes Streeting said: “New parents want the best for their baby, and it’s wrong that vague on-pack messages are leaving families out of pocket for an essential product.

“It’s not right that manufacturers have been able to package up these products in a way that plays on the instincts of new mums and dads who are just trying to do what’s right for their child.

“These new measures mean parents will have confidence in the formula they are buying, no matter the price, and can now make the most of supermarket loyalty schemes, too.”

Further action may follow depending on how the new guidance impacts families and the market.