Unlocking Savings for New Parents: Supermarkets to Allow Loyalty Discounts on Baby Formula
In a groundbreaking initiative, the UK government is set to allow supermarket loyalty points and vouchers to be used for purchasing infant formula, a move aimed at alleviating the financial burden on parents. The price of infant formula has surged significantly, with standard tins costing between £12 and £15, making it increasingly difficult for families to afford this essential product. To combat this, the government is adopting recommendations from the Competition and Markets Authority (CMA), which suggest ensuring that parents are not coerced into buying pricier brands. This policy change could potentially save families between £400 to £500 annually, particularly benefiting those who cannot breastfeed.
Charities have raised alarms about lower-income families diluting formula or sacrificing other essential needs due to the exorbitant costs. With the new measures, parents will receive clearer guidance on the nutritional standards that all formula products in the UK must meet, thereby encouraging retailers to comply and helping families make informed choices.
Historically, the baby formula market has been tightly regulated, barring discounts and promotions to encourage breastfeeding, mirroring restrictions in sectors like tobacco and gambling. However, the CMA’s interim report highlighted that these restrictions hindered competition, leading consumers to pay more. Currently, three major companies dominate the infant formula market—Danone, Kendal, and Nestle—making price transparency and competition even more critical.
Prime Minister Sir Keir Starmer emphasized that parents have long been pressured into overspending on baby milk, promising actionable steps to improve affordability and provide clearer guidance for retailers. Health Secretary Wes Streeting condemned the tactics used by manufacturers that prey on concerned new parents, stating that the new rules will empower them to make informed choices regardless of price.
UNICEF and the British Retail Consortium welcomed the initiative, recognizing it as a commendable step towards making infant formula more accessible. Additionally, the government is considering further recommendations from the CMA, such as grouping all infant formulas together in stores and clarifying what constitutes advertising. These changes are poised not only to enhance affordability but also to support infant feeding, addressing an urgent need that many families face.