Parents will be able to use gift vouchers and supermarket loyalty points to buy infant formula under a government scheme to make infant milk more affordable.
Under the new measures, parents will be given clearer guidance on nutritional standards, which all formulas sold in the UK must meet, and retailers will be encouraged to offer them.
The scheme aims to give families confidence to choose cheaper options. Officials estimate that those who cannot or choose not to breastfeed could save up to £500 a year.
The price of infant formula has risen dramatically in recent years, with a standard can costing between £12 and £15.
Charities were concerned that low-income families were watering down the formula or struggling to afford other essentials because it was too expensive.
Some retailers had previously highlighted that rules banning direct or indirect advertising of infant formula made them unable to offer discounts and were unsure whether people could use loyalty programs to buy their milk.
Only three companies represent around 90% of the infant formula market: Danone, Kendal and Nestlé.
The Competition and Markets Authority (CMA) reviewed the sector earlier this year and recommended that it be made much clearer to parents that all products on shelves meet nutritional standards, so that families were not pressured to buy higher-cost brands for fear of ensuring their baby got the best start.
Announcing the changes to Prime Minister’s Questions on Wednesday, Sir Keir Starmer said parents for too long “have been forced to spend more on infant formula than necessary”.
“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 helping new parents use loyalty points and vouchers,” she said.
Health Secretary Wes Streeting said it was “not right” that manufacturers had been able to package their products in such a way as to capitalize on new parents’ concerns about what is best for their baby.
“These new measures mean parents will have confidence in the formula they buy, regardless of the price, and will now also be able to make the most of supermarket loyalty programmes,” he said.
Other recommendations from the CMA, which the government has agreed to adopt in principle, include ensuring that all infant formulas are displayed together, separate from other formula milks, and clarifying what is considered advertising.
The government said further action was needed on other recommendations, including banning unverifiable messages on labels of infant and follow-on formulas, and expanding the restriction on advertising of follow-on formulas.
A CMA spokesperson said the watchdog was willing to support governments and agencies across the UK in implementing its recommendations or advising on measures still under consideration.
The authorities of the four delegated countries have accepted the government’s response.
