Government Moves to Slash Baby Formula Costs, Allow Loyalty Point Purchases Amid Soaring Prices

Parents in the UK will soon be able to use loyalty points and vouchers to purchase infant formula in supermarkets, under a new government initiative aimed at making essential baby milk more affordable. This move comes as the price of standard infant formula tins has surged to between £12 and £15, causing significant financial strain for many families.

Millenium TV has learned that the scheme is designed to empower families to choose more economical options, with government and consumer watchdog estimates suggesting potential annual savings of up to £500 for those who do not or cannot breastfeed. Concerns from charities highlighted that lower-income households were resorting to diluting formula or sacrificing other necessities due to the prohibitive costs.

New measures will also provide clearer guidance to parents regarding the nutritional standards that all formula sold in the UK must meet, encouraging retailers to clearly display this information. Previously, some retailers expressed confusion over rules prohibiting direct or indirect advertising of infant formula, which made discounting or the use of loyalty schemes for these products seem impossible.

Regulations currently ban promotions such as loyalty points or discounts for baby formula, similar to restrictions on tobacco and lottery tickets. This policy was intended to promote breastfeeding, which the NHS advises is healthier for children. However, an interim report from the Competition and Markets Authority (CMA) in February indicated that these restrictions inadvertently prevented price competition, leading to higher consumer costs.

The CMA’s report also revealed stark price differences between brands, noting that families could save approximately £540 annually by opting for a cheaper formula version. The market is largely dominated by just three companies: Danone, Kendal, and Nestle, accounting for about 90% of infant formula sales.

Sir Keir Starmer, announcing the changes, stated that parents have “for too long been pushed into spending more on infant formula than needed.” He explained, “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 for their baby’s well-being. He added, “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.”

Shereen Fisher, director of the Baby Friendly Initiative at UNICEF, welcomed the decision, calling infant formula “a basic necessity.” She noted, “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.”

Andrea Martinez-Inchausti, assistant director of food at the British Retail Consortium (BRC), described the government’s proposed next steps as sensible. She stated the BRC looks forward to “working through the detail with them to implement the necessary changes.”

Other recommendations from the CMA, which the government has agreed to in principle, include ensuring all infant formula is displayed together, separate from other formula milks, and clarifying what constitutes advertising. Millenium TV understands that further action is needed on recommendations such as prohibiting non-verifiable messages on infant and follow-on formula labels, and extending advertising restrictions for follow-on formula.

A CMA spokesperson confirmed that the watchdog is prepared to assist governments and agencies across the UK in implementing its recommendations or advising on measures still under consideration. Authorities in all four devolved nations have endorsed the government’s response.