A MAJOR update has been issued on baby formula prices and parents could save £300 a year.
Families are paying more than they need to for formula due to a lack of competition in the market, a government watchdog has found.
The Competition and Markets Authority (CMA) has proposed a round of sweeping changes for the baby formula industry following an investigation.
At the moment there are two dominant baby formula companies – Danone and Nestle – which account for over 90% of all sales.
The regulator has been investigating the baby milk market after finding it was vulnerable to higher than inflation price rises.
A probe into the supply of formula was launched in 2024 and the results have been published this morning.
After finding that many brands cost more than the weekly value of people’s benefits, the CMA found that some parents forgo food when buying the product.
The CMA said that high prices and branding in the industry are leading to “poor outcomes” for parents, who could save about £300 a year simply by switching to lower priced products.
Watchdog officials said the NHS could have its own non-brand baby formula, in a bid to help drive prices down.
It also said existing products should be provided in non-branded containers in hospitals to reduce brand influence while parents are in a “vulnerable” setting.
The CMA said packaging should clearly display nutritional information, while any claims that cannot easily be checked by parents should be banned.
It said this would make it easier for parents to pick between brands.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Shopping discounts – How to make savings and find the best bargains” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6346251447112″ video_ids=”” width=”640px”]Regulators have previously pointed to prices surging by 25% over the past two years, while consumers have borne the brunt of rising factory costs.
However, the CMA stopped short of recommending a price cap, which it had said it was looking into last year.
Sarah Cardell, chief executive of the CMA, said many parents “pick a brand at a vulnerable moment, based on incomplete information, often believing that higher prices must mean better quality”.
“This is despite NHS advice stating that all brands will meet your baby’s nutritional needs, regardless of brand or price.”
Sophie Livingstone, chief executive of Little Village, a baby bank service, said nearly one in 10 of the families her charity supports are “resorting to watering down formula to make each box last longer”.
“The cost of baby formula is simply too high and piling on the pressure when families are already juggling high housing, energy and food costs.
“We want two things to happen – that the cost of formula comes down and that the Government provides clear guidance that allows baby banks to safely supply formula to the families most in need.”
Why was the CMA looking into baby formula prices?
The news comes after the boss of Iceland Richard Walker last year hit out at “exploitation” of new parents and called for action to be taken in the industry.
Over the past few years it has become more expensive to manufacture infant formula and these costs have been passed on directly to customers.
Parents often choose baby formula for the first time when they are in vulnerable situations such as in hospital straight after birth.
Often they make the choice when they do not have access to clear, accurate and impartial information, the watchdog previously warned.
They’re also often under a lot of pressure to do what is best for their baby.
As a result, they can often choose a more expensive product as they assume that a higher price will mean it is better quality.
This is not true as the NHS advises that “it does not matter what brand you choose, they’ll all meet your baby’s nutritional needs, regardless of price”.
Parents also often listen to advice from friends and family when choosing a formula, which means the brand’s reputation plays a much larger role in the decision making.
How do I compare prices?
Currently, an 800g tub of Aptamil Advanced 1 First Infant Baby Milk formula costs £18 at Tesco.
Meanwhile, the same size tub of SMA PRO First Infant Baby Milk formula costs £13 at the supermarket.
In comparison, last year a trendy baby formula brand launched a cut-price “affordable” version.
The Bonya formula is around a third cheaper than most other major brands on the market and contains the same nutrients.
Its 800g First Infant Milk 1 from Birth costs just £8.45 at Tesco.
There is just one retailer in the UK which sells its own brand, which is Aldi.
All baby formula must contain the same nutritional composition by law, so cheaper brands have all the nutrients babies need.
When at the supermarket it’s important to make sure that you are shopping around to get the best deal.
You can use a comparison website such as Trolley, My Supermarket Compare and Priceable to check the cost of infant formula at different supermarkets.
Always check the price per gram or ml to make sure you are comparing like-for-like.
This should be in small print on the price label in the shop.
What help is there for parents?
If you receive certain benefits and are pregnant or have at least one child under the age of four then you can apply for Healthy Start vouchers.
You will get:
- £4.25 each week of your pregnancy
- £8.50 each week for children from birth to one year old
- £4.25 each week for children between one and four years old
The money will stop after your child’s fourth birthday or if you no longer receive benefits.
If you are eligible you will be sent a Healthy Start card with money on it that you can use in some UK shops.
The money will be added onto this card every four weeks.
You can use the card to buy:
- Plain liquid cow’s milk
- Fresh, frozen and tinned fruit and vegetables
- Fresh, dried and tinned pulses
- Infant formula milk based on cow’s milk
To be eligible for the scheme you must be receiving one of the following benefits:
- Income support
- Income-based jobseeker’s allowance
- Child tax credit if your family’s annual income is £16,190 or less, and not getting working tax credit
- Universal credit if your family’s monthly earned income is £408 or less from employment
- Pension credit