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

Parents across the United Kingdom are set to benefit from new government measures designed to significantly reduce the cost of infant formula. Under the initiative, families will soon be able to utilize gift vouchers and supermarket loyalty points to purchase baby milk, a move expected to save some households up to £500 a year.

The new regulations will also provide clearer guidance on the nutritional standards all formula sold in the UK must meet, encouraging retailers to highlight more affordable options. This aims to empower families to choose less expensive products with confidence, knowing all offerings meet essential health requirements for infants.

The price of infant formula has seen a substantial rise in recent years, with a standard tin typically ranging between £12 and £15. Charities had voiced serious concerns that the escalating costs were forcing lower-income families to either dilute formula or divert funds from other critical household expenses.

Previously, some retailers faced ambiguity regarding rules that prohibited direct or indirect advertising of infant formula, making it unclear whether they could offer discounts or allow loyalty scheme redemption. Millenium TV understands that these new guidelines seek to clarify such issues.

The infant formula market is highly concentrated, with approximately 90% controlled by just three companies: Danone, Kendal, and Nestle. Earlier this year, the Competition and Markets Authority (CMA) investigated the sector, recommending greater transparency for parents regarding nutritional standards. This was intended to prevent families from feeling pressured to buy higher-priced brands solely out of concern for their baby’s well-being.

During Prime Minister’s Questions on Wednesday, Sir Keir Starmer announced the changes, stating that parents have “for too long been pushed into spending more on infant formula than needed.” He emphasized the government’s commitment to “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 remarked that it was “not right” for manufacturers to package products in ways that exploited new parents’ anxieties about their baby’s health. 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 announcement, calling infant formula “a basic necessity.” She explained that “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.” Fisher concluded that “today’s announcement signals the first step to tackle these issues, improve affordability and strengthen infant feeding support.”

Further recommendations from the CMA, which the government has agreed to adopt in principle, include ensuring all infant formula is displayed together, distinctly separate from other formula milks, and clarifying what constitutes advertising. Millenium TV has learned that the government believes additional action is still needed on other suggestions, such as prohibiting non-verifiable messages on labels and extending advertising restrictions to follow-on formula.

A spokesperson for the CMA affirmed the watchdog’s readiness to assist governments and agencies across the UK in implementing these recommendations or advising on measures still under consideration. Authorities in all four devolved nations have reportedly agreed to the government’s response.