In a significant move to ease the financial burden on families, Prime Minister Sir Keir Starmer has announced a major reform allowing parents to use supermarket loyalty points and vouchers to purchase infant formula.
PM Announces Cost-of-Living Relief for Parents
The change was unveiled by the Prime Minister during Prime Minister's Questions (PMQs) on Wednesday, December 3. Sir Keir Starmer stated that for "too long," parents and guardians have been overpaying for essential baby nutrition, often misled into believing higher prices guaranteed better quality.
"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," he told the Commons. "I can announce today that we're changing that." The government estimates the reform could help families save up to £500 before their child's first birthday.
Addressing a Market Failure and Soaring Costs
This policy shift follows a critical investigation by the Competition and Markets Authority (CMA). The regulator found that existing rules stifled price competition among retailers and created ambiguity, leaving many supermarkets unsure if loyalty schemes could legally be applied to formula due to bans on promotion.
The CMA's report, highlighted back in February, revealed that these restrictions ultimately forced families to pay more than necessary. With a typical tin of formula costing between £12 and £15—after price hikes of around 25% over two years—the financial pressure has been severe.
Charities have reported the heartbreaking consequence of some families being forced to water down formula or sacrifice other essentials. The market is dominated by three manufacturers—Danone, Kendal, and Nestle—who account for roughly 90% of sales, with some brand prices shockingly exceeding the weekly value of certain benefits payments.
A New Era of Confidence and Competition
Health Secretary Wes Streeting welcomed the change, criticising manufacturers for packaging and marketing tactics that prey on the instincts of new parents. "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," he said.
Streeting emphasised that the new regulations will ensure 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." The reform is designed to inject much-needed competition into the market and provide tangible, immediate relief to household budgets during a child's crucial first year.
