Government Make Baby Formula Cheaper: How Parents 'Might' Save £500 a Year

How the New Baby Formula Rules Will Cut Costs for Parents, & Why It Won't Help Everyone!

Baby formula has become one of the most expensive essentials for new parents, with standard tins often costing between £12 and £15. During a cost-of-living crisis, many families have been pushed to the limit, and some charities have even warned that parents were watering down formula or cutting back on essentials because they simply could not afford enough.

The government has now announced a major change that will make feeding more affordable. Parents will be able to buy infant formula using loyalty points, vouchers, coupons and gift cards. Retailers will also receive new guidance on how formula is displayed and marketed, making it easier for families to choose cheaper options without feeling pressured by packaging or branding.

These changes have the potential to save families up to £500 during a baby’s first year.

This is everything parents need to know and how to make the most of it.

What the Government Has Announced and Why It Matters

The decision follows a detailed investigation by the Competition and Markets Authority. The CMA found that many parents were paying more than necessary because they believed premium brands were better for their babies. In reality, the NHS confirms that all infant formula sold in the UK meets the same strict nutritional standards. That means the cheapest tin and the most premium branded tin both support healthy growth and development.

The new measures aim to:

• Allow parents to buy infant formula using loyalty points, gift cards, coupons and store vouchers • Give clearer guidance to retailers on how the formula is displayed in stores • Reduce pressure on parents to buy expensive branded products • Increase transparency and stop misleading or confusing packaging claims • Help protect low-income families who were struggling to afford enough formula

The CMA also highlighted that restrictions designed to promote breastfeeding had unintentionally prevented retailers from offering discounts or support to families who use formula. This lack of competition kept prices high and left parents with limited ways to reduce costs.

Parents Can Now Use Loyalty Points and Vouchers for Baby Formula

This is the most significant and important change. For years, infant formula was treated like products that cannot be discounted, such as tobacco or lottery tickets. Retailers believed they were not allowed to let customers use:

• Loyalty card points such as Tesco Clubcard or Boots Advantage • Promotional vouchers • Store coupons • Gift cards, including gift cards bought from gift card cashback services such as JamDoughnut, meaning there is an opportunity to earn cashback on the formula, saving money.

The government has confirmed that retailers can now allow all of these payment methods for infant formula. This gives parents genuine flexibility and real financial relief.

For families who collect points throughout the year, this will make the formula significantly more affordable.

Clearer Displays and Better Guidance for Retailers

The CMA found that parents were often nudged toward more expensive brands because of how formula was displayed on shelves. Cheaper options were harder to find, while premium products took the best positions and used packaging claims that parents struggled to verify.

The new guidance encourages retailers to:

• Place all infant formula together • Make cheaper brands easier to locate • Remove confusing or unproven marketing language • Provide clearer pricing information

This allows parents to compare products quickly and confidently.

Why These Changes Are Important for Families

Infant formula is a basic necessity for many parents. The average family can spend more than £1,000 a year on formula alone. With prices rising and household budgets already under pressure, many simply could not keep up.

These new rules help by:

• Reducing financial strain • Ensuring parents can choose based on budget without fear • Supporting families who cannot or choose not to breastfeed • Preventing reliance on premium brands that are not nutritionally superior • Encouraging competition and fairer pricing across the market

The government is also investing in breastfeeding support and infant feeding services, but these formula changes are designed to help all feeding journeys equally.

How Much Money Could Parents Save?

The CMA found that parents could save around £540 a year simply by switching from a premium brand to the cheapest nutritionally equivalent option. Combined with loyalty points and vouchers, total savings could reach around £1,000 for some families.

The Reason This News Might Not Be As Good As It Sounds!

These changes will make formula more affordable for many parents, but it is important to recognise their limits. Families who shop in lower-priced stores that do not offer loyalty schemes will not see any benefit. Even in supermarkets with points systems, the savings are usually small unless you already spend enough to build a significant balance.

Parents on the lowest incomes are often already choosing the most affordable formula on the shelf and cannot reduce their spending any further by switching brands. Some are already struggling to afford the cheapest tin available, which means loyalty points alone cannot fix the wider issue.

Infant formula remains a high-cost essential with no substitute for families who cannot breastfeed. The CMA has highlighted that a combination of manufacturer margins and retail markups continues to drive prices up. If the long-term goal is to ensure every family can afford the formula they need, further action on pricing would have a far greater impact.

This is an important step forward, but more support may still be needed to make the formula genuinely affordable for everyone.

What Happens Next?

The changes come into effect immediately, although supermarkets may take time to update their payment systems and policies. Expect to see clearer displays and more explicit guidance on the shelves.

The government will publish its wider Child Poverty Strategy soon. This will include more measures to support families with childcare, school meals and feeding support.

FAQ's

Can I use loyalty points to buy baby formula now?

Yes. Parents can now use loyalty cards, discount vouchers, gift cards and store coupons to purchase infant formula. Supermarkets have been given new guidance that allows this.

Why was baby formula not included in loyalty schemes before

Previous rules were designed to encourage breastfeeding and were interpreted as banning promotions on infant formula. This had the unintended effect of stopping retailers from offering discounts or allowing loyalty payments.

Is cheap baby formula safe for my baby?

Yes. All infant formula sold in the UK must meet the same strict nutritional standards. Cheaper brands are just as safe and nutritionally complete as premium brands.

Why is baby formula so expensive in the UK?

Competition is limited, and only a few companies dominate. Packaging and brand messaging also influenced parents to believe higher prices meant better quality. The CMA reported that this led to unnecessary price increases.

How much money can I save by choosing a cheaper brand?

Parents could save around £540 a year by choosing a lower-priced formula. With loyalty points and vouchers now allowed, total savings can reach up to £1,000 over the first year.

Will baby formula go on offer now?

Not necessarily. Promotions may still be restricted, but you can use loyalty points, coupons and vouchers. That alone will significantly reduce the cost.

Does this change affect follow-on formula?

The main changes apply to infant formula. The government is reviewing marketing and display rules for follow-on formulas, so further updates may follow.

Can I still get breastfeeding support?

Yes. The government has invested in new services, including expanding the National Breastfeeding Helpline and providing new funding via Family Hubs and Start for Life. Formula changes are intended to support those who use formula, not reduce breastfeeding support.

When will supermarkets update their systems?

The changes apply immediately, but rollout may take some time. Some supermarkets will update faster than others.

These changes are a significant step forward for families who rely on infant formula. They give parents more freedom, more financial relief and more confidence in choosing the product that suits their budget.

With clearer guidance, better transparency, and the ability to use loyalty schemes, formula feeding becomes far more accessible for those who need it.