It comes after a report from the Competition and Markets Authority (CMA) criticised infant formula brands of ‘Greedflation’ – increasing prices of their product faster than their costs rose.
‘Price inflation and competition in food and grocery manufacturing and supply’, looks at the cost of 10 products including baby formula, milk and baked beans, comparing branded and own label food.
It finds that the cost of baby formula in the UK has risen by 25 per cent over the last two years. Also, that parents are unlikely to switch from branded to own brand formula, which could save families more than £500 over the first year of a baby’s life. However, the report does suggest there is limited availability of own brand baby formulas.
Their analysis of infant formula is based upon data from First Steps Nutrition Trust on the cost of formula and feeding babies, which the Trust has been gathering and reporting on since 2018.
First Steps are recommending four actions Government should take to ensure families using formula can feed their babies and safely, they are:
- Increasing the cash allowance eligible mums and families receive under the Healthy Start scheme. Currently, the amount families receive is £8.50 a week, when the cheapest infant formula is Aldi’s Mamia at £9.39 a tin. Enrolment on the scheme should also be automatic.
- Launching a public health messaging campaign around the nutritional equivalence of all first infant formulas.
- Enforcing existing legislation designed to prevent inappropriate marketing of formula milks and to protect breastfeeding and safe and appropriate formula feeding.
- For Government to establish pricing policies and practices to ensure infant formula is provided at lower prices on a long-term basis, for instance through a price cap.
Dr Vicky Sibson, director of First Steps Nutrition Trust, said, ‘It is often the case that families least able to afford formula are the most likely to need it but, tragically, it is a really expensive food whose price has been sky rocketing while companies protect large profit margins.
‘The fact that infant formula may simply be unaffordable for some families with babies is deeply concerning, as some of the coping strategies they feel forced to use may harm their baby’s health.
‘Given that all first infant formulas are, by law, nutritionally comparable, there is absolutely no excuse for the very wide range in prices between different products.’
Alison Thewliss MP, chair of the APPG on Infant Feeding and Inequalities, added, ‘The report from the CMA confirms the need for Government action on this issue. New parents should not be left paying the price - £500 extra in this instance - of Westminster’s cost of living crisis.
‘As highlighted in the report, unlike baked beans, mayo and other food items, there is limited availability of affordable alternatives when it comes to baby formula, leaving parents with no choice but to bear the burden of inflated prices or go without. This is not only unfair but also detrimental to the well-being of both infants and their families.’
Will McMahon, co-founder of Kendamil, which produces infant formula, said it welcomed the CMA’s report and that the rising cost of formula is partly driven by two multinational suppliers. He explained that the ‘concentration of supplier power promotes monopolistic market dynamics, a lack of supply diversification and unjustifiable pricing strategies’, adding that Kendamil are working to be a ‘part of the solution’.