‘Absolutely essential’ as major supermarket cuts price of baby formula after brands accused of ‘exploiting’ families
A MAJOR supermarket is to cut the price of baby formula after brands were accused of “exploiting” families.
Iceland is slashing the price of Aptamil infant formula after manufacturer Danone agreed to a 7% reduction to retailers.
The chain will sell three Aptamil lines for £11.20 from January 16, a reduction from the “already market-leading” £12, it said.
These lines include: Aptamil 800g First Infant Milk, Aptamil 800g Growing Up Milk, and Aptamil 800g Follow-on Milk.
It follows Danone’s agreement to reduce the price it offers its Aptamil powdered formula to shops by up to 7% from January 15.
The reduction would apply to most Aptamil products including 800g tubs of first infant formula milk.
Retailers, not Danone, are the ones who set the shelf price of the products – which is what shoppers pay.
It’s expected that other supermarkets will follow Iceland’s lead and pass on Danone’s reduction to customers.
The Sun has contacted all major supermarkets about their plans.
Last month, the Competition and Markets Authority (CMA) said formula prices had risen by a quarter over the past two years.
The regulator has been investigating the baby formula market after finding it was vulnerable to higher-than-inflation price rises.
There is just one retailer in the UK which sells its own brand, which is Aldi.
The CMA found competition was hampered because shoppers were reluctant to switch brands, either because friends and family recommended them or because their baby would drink only one.
New parents could make significant savings of £500 in the first year of a baby’s life on formula milk products by shopping around, the CMA also added.
The World Health Organisation (WHO) told Sky News last year that it wanted government action over escalating baby formula prices that were “exploiting” British families.
In 2023, Iceland’s own research suggested 86% of new parents were concerned about how to afford to feed their non-breastfed babies.
Iceland executive chairman Richard Walker said: “I welcome Danone’s move to reduce the price of Aptamil across the market and it’s only right we again reduce the price even further at Iceland.
“It’s important, however, that this doesn’t gloss over the actions which are still urgently needed to support families.”
Mr Walker said that while the chain does support that breastfeeding is seen as the most beneficial way of feeding infants, those families who rely on formula need more support too.
“Simply reducing the price won’t solve the systemic issues we’ve drawn attention to,” he added.
“2024 is going to be another tough year for families and we need immediate changes to the law to allow retailers to tell customers when they have reduced the price of formula and customers must be allowed to buy formula with loyalty points, gift cards or food bank vouchers.”
Iceland has also called on the government to review Healthy Start vouchers, which are currently worth £8.50 per week for babies up to age one.
The value of the vouchers has not increased since April 2021, and currently, they don’t cover the cost of even the cheapest formula after recent price increases.
Dr Erin Williams, co-founder and director of Feed, agreed: “Whilst it’s a welcome move, Danone’s infant formula price reduction is by no means a solution to the wider issues facing families struggling to access infant formula, and it remains critical that the UK government to commit to addressing this at a higher level.
“This includes an increase to the value of Healthy Start vouchers which, despite this price reduction, still don’t cover the cost of a tub of formula.”
What are Healthy Start vouchers?
Healthy Start vouchers are for parents who are pregnant or have a child under four years old.
The vouchers are worth £4.25 a week, or £221 a year.
But those with a child under the age of one get two vouchers – so £8.50 a week – which adds up to £442 a year.
The vouchers can only be used to buy the following:
- Fresh fruit and veg
- Tinned or frozen fruit or veg
- Dried fruit
- Fresh, dried or tinned pulses
- Fresh or long-life pasteurised cow’s milk
- Baby formula made from cow’s milk
These should not be:
- Any frozen or tinned foods with added ingredients like fat, salt, sugar or flavourings, such as tinned tomatoes with herbs or kidney beans in chilli sauce
- Chips or onion rings
- Tinned fruits in syrup
- Smoothies or juices
- Plant-based milk
- Follow-on formula
- Powdered, condensed or flavoured milk (apart from stage one infant formula)
You can also get free Healthy Start vitamins with the vouchers.
There used to be paper vouchers, but now the money is loaded onto a prepaid card that can be used at any location where Mastercard is accepted.
You can’t use the prepaid card for online shopping or to withdraw money from a cash machine, but you can check your balance at an ATM.
How do I claim the vouchers?
To be eligible for Healthy Start vouchers, you need to be at least 10 weeks pregnant or have at least one child under four.
Your family’s monthly take-home pay from work must also be less than £408 a week and you need to receive Universal Credit.
If you receive Child Tax Credit you may still be able to apply, for example, if your family’s annual income is less than £16,190 or you do not receive Working Tax Credit.
If you’re under 18 and pregnant you can claim the vouchers until the baby is born, even if you do not receive any benefits.
To apply, you can use the government website, print out a paper form from the Healthy Start website or request a form from your GP or midwife.
There’s also an option to request a form by calling the Healthy Start helpline on 0345 607 6823.
Once you’ve applied online, you should receive your card within five to 10 working days.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.