Parents should be allowed to use supermarket loyalty points, gift cards, and vouchers to purchase baby formula, according to a recommendation from the UK’s competition regulator. The proposal follows a thorough investigation into the baby formula market and aims to give families more flexibility in managing their budgets.
The Competition and Markets Authority (CMA) has emphasized that restrictions on price promotions and discounts for baby formula should remain. These restrictions are in place to prevent undermining breastfeeding, which is widely encouraged for infant health benefits.
However, the CMA believes that allowing parents to use loyalty points and non-cash payment options would help them maximize their savings. Speaking to the BBC, the regulator’s chief executive stated that this change could significantly ease financial burdens for families.
The CMA’s findings suggest that parents could save up to £540 annually by switching between different formula brands. Research by the consumer group Which? supports this by stating that all baby formulas sold in the UK meet the same legal nutritional standards, regardless of brand or price.
Despite this, manufacturers often promote their formulas as superior, leading some parents to believe they need to buy more expensive options. Which? advises parents to be skeptical of such claims, as all formulas are designed to provide essential nutrients for babies.
Samantha Knaggs, a 35-year-old mother from Hull, shared her experience with baby formula. She breastfed her first two children but now relies on formula for her third baby due to being on anti-convulsant medication.
She believes that allowing loyalty points for formula purchases would be an ideal way to support parents. While the cost of formula does not strain her finances, she has known other mothers who have had to rely on food banks to afford baby milk.
She also mentioned that clearer information about formula contents might have led her to choose a cheaper brand. However, like many parents, she is hesitant to switch formulas due to concerns about her baby’s reaction to a different brand."If all formulas contain the same key nutrients, they should be priced the same," she suggested.
To improve fairness in the market, the CMA has proposed several changes:Allow parents to use loyalty points, gift cards, and vouchers to buy formula.Provide plain packaging for formula in hospitals to prevent brand influence at birth.
Ensure clear, impartial supermarket labeling to inform parents that all formulas meet the same nutritional requirements.Improve price comparison options so parents can make informed financial decisions.Extend the ban on advertising to include follow-on formula to prevent misleading marketing.
The CMA’s research highlighted significant price differences between formula brands. Parents who choose Aptamil (the UK market leader) over Little Steps (a more affordable brand) could spend an extra £300 per year. Opting for Aptamil Advanced—a premium version—over Little Steps could cost parents an additional £540 annually.
Despite the strict legal regulations ensuring all formulas provide essential nutrients, pricing differences create financial pressure on families. The CMA argues that parents often feel guilty about choosing lower-cost brands due to marketing tactics that imply premium formulas are superior.
Another key concern raised by the CMA is how hospitals introduce parents to specific formula brands. Currently, major formula companies—Danone (Aptamil, Cow & Gate), Nestlé (SMA), and Kendamil—control over 90% of the UK baby formula market.
Many of these companies provide formula to the NHS at a loss, knowing that once parents start using a brand, they are likely to continue buying it at retail prices. The CMA believes that switching to plain packaging in hospitals would eliminate this brand loyalty and allow parents to make independent choices.
The CMA has also urged supermarkets to ensure their labels make it clear that all infant formulas meet the required nutritional standards. Additionally, retailers should make it easier for parents to compare prices and understand their options.
Responding to the recommendations, Danone stated that while all formulas meet minimum legal requirements, not all offer the same "nutritional benefits." Nestlé emphasized the importance of ensuring families have access to accurate and well-informed feeding decisions.
The CMA’s recommendations aim to empower parents by offering greater financial flexibility while maintaining regulations that support breastfeeding. If implemented, these changes could help ease the financial strain on families while ensuring that parents make informed choices about their baby’s nutrition.