Parents could save £300 a year on baby formula amid high prices, says watchdog

Regulators have proposed sweeping changes for the baby formula industry, after finding many brands cost more than the weekly value of people’s benefits, leading some parents to forgo food to buy the product.

The Competition and Markets Authority (CMA) said issues like high prices and branding in the industry are leading to “poor outcomes” for parents, who could be saving about £300 a year by switching to lower priced products.

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.

Regulators have previously pointed to prices surging by 25% over the past two years, while consumers have borne the brunt of rising factory costs.

The industry is dominated by just three companies – Danone, Kendal and Nestle, which make up about 90% of the market.

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.”

Kat Romero, a freelance journalist who helped launch the Metro’s Formula for Change campaign alongside the charity Feed, said the CMA recommendations are a “move in the right direction” for parents.

The 36-year-old, who formula-fed her three-year-old son River, said she is particularly hopeful the Government will back a CMA recommendation that customers should be able to purchase formula with cash equivalents such as loyalty points or vouchers.

“Formula-feeding parents will tell you that there’s a lot of judgment that still exists, a lot of shame,” Ms Romero told the PA news agency.

“But the reality is not every mother can breastfeed, not every mother should have to breastfeed – it really should be a choice.

“But also through the course of this campaign, we’ve met families where there’s not even a mother in the picture, the child may be being raised by the grandparents, it may be a same-sex couple that have adopted.

“Parenting is hard enough… we should all unite on the fact that babies need to be fed.”

Metro journalist Claie Wilson added: “Our campaign is about supporting families, especially those who are struggling to make ends meet.

“We’re grateful that some supermarkets have already flouted unclear guidelines to at least lower the price of formula, but we need to see this across the board – and we need to make sure it’s clear that they are allowed to do so.

“They should also be given the opportunity to support their customers and if you can buy pet food, alcohol and energy drinks with loyalty points then there is no valid reason that formula shouldn’t be available to buy that way too.”