New Government Plan Aims to Slash Infant Formula Costs by Up to £500 Annually for Families

A significant new government initiative will enable parents to use gift vouchers and supermarket loyalty points for purchasing infant formula, a move anticipated to make essential baby milk more accessible and affordable for families across the UK. The measures, announced recently, are designed to alleviate the financial burden on new parents.

Under the new framework, retailers will also receive enhanced guidance on ensuring all infant formula sold meets stringent nutritional standards. This aims to empower families to confidently select cheaper options without compromising on quality. Officials estimate these changes could lead to annual savings of up to £500 for those who opt not to breastfeed or are unable to.

The cost of infant formula has seen a substantial increase in recent years, with a standard tin typically priced between £12 and £15. Charities have voiced concerns that the rising expense was forcing lower-income families to dilute formula or struggle with other essential household costs. Previously, some retailers faced ambiguity regarding rules that prohibited direct or indirect advertising, making it unclear if loyalty schemes could be used for formula purchases.

Millenium TV has learned that three major companies — Danone, Kendal, and Nestle — collectively dominate approximately 90% of the infant formula market. The Competition and Markets Authority (CMA) previously examined the sector and recommended greater clarity for parents regarding nutritional standards, aiming to prevent pressure to buy higher-priced brands solely based on perceived quality.

During Prime Minister’s Questions on Wednesday, Sir Keir Starmer stated that for too long, parents have “been pushed into spending more on infant formula than needed.” He affirmed, “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 commented that it was “not right” for manufacturers to package products in ways that exploited new parents’ concerns about their baby’s well-being. “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,” he explained.

Shereen Fisher, director of the Baby Friendly Initiative at UNICEF, welcomed the announcement, highlighting that infant formula is “a basic necessity.” She added, “For too long, families have faced inflated prices for this essential product. The CMA has shown that many formulas are vastly overpriced, with many families struggling as a result. Today’s announcement signals the first step to tackle these issues, improve affordability and strengthen infant feeding support.”

Additional recommendations from the CMA, which the government has agreed to adopt in principle, include displaying all infant formula together, separate from other formula milks, and clarifying what constitutes advertising. The government indicated that further action is needed on other suggestions, such as prohibiting non-verifiable messages on infant and follow-on formula labels and extending advertising restrictions for follow-on formula. Authorities in all four devolved nations have confirmed their agreement to the government’s response.