Money Wellness

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Published 14 Feb 2025

3 min read

Parents could save £300 a year on baby formula by shopping around

The UK’s competition watchdog is calling for changes to the baby formula industry to help parents save money.

Parents could save £300 a year on baby formula by shopping around
James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 14 February 2025

According to the Competition and Markets Authority (CMA), parents could save about £300 in the first year of a baby’s life by switching from a popular mid-priced product to a cheaper alternative.

And if they switch from a premium high-priced brand to a low-priced brand they could save about £500.

However, the watchdog believes how products are branded are leading to “poor outcomes” for parents.

“Many [parents] pick a brand at a vulnerable moment, based on incomplete information, often believing that higher prices must mean better quality,” said Sarah Cardell, chief executive of the CMA.

“This is despite NHS advice stating that all brands will meet your baby’s nutritional needs, regardless of brand or price.”

Watchdog calls for removal of branding in hospitals

The CMA has suggested that if parents are given infant formula in healthcare settings, such as a hospital, labelling should be standardised so the brand has less influence on their decision making.

“Once parents have found a brand that works for their baby, they rarely switch,” the regulator said.

The CMA has also recommended:

  • clearly showing nutritional information on all packaging
  • making it easier to compare prices of different brands
  • extending the ban on advertising to include follow-on formula
  • allowing parents to use vouchers and loyalty points to buy infant formula

The government will now review the watchdog’s recommendations and respond fully in due course.

Public health minister Ashley Dalton said: “For those families that cannot or choose not to breastfeed, it is vital that they can access formula that is affordable and high quality. 

“Families should not be paying over the odds to feed their babies because of outdated regulation.”

What support is available to parents?

If you’re struggling to afford to feed your baby, then help is available.

Healthy Start

The Healthy Start scheme is designed to support families in need. 

If you’re pregnant or have children under four, this scheme can help you cut the cost of your grocery shopping and buy healthy food for you and your little one. 

What can I get with Healthy Start?

  • plain liquid cow’s milk
  • fresh, frozen and tinned fruit and vegetables
  • fresh, dried and tinned pulses
  • infant formula milk based on cow’s milk
  • Healthy Start vitamins to support you during pregnancy and breastfeeding
  • vitamin drops suitable from birth to 4 years old

Who can get Healthy Start?

It's aimed at families on certain benefits, such as:

  • universal credit
  • child tax credit
  • income support
  • income-based jobseeker’s allowance
  • pension credit (if you get the child addition)
  • income-related employment and support allowance

Pregnant women under 18 can apply too, even if you don’t get any benefits.

If you’re eligible, you’ll be sent a Healthy Start card with money on it that will be topped up every four weeks.

How to apply

The application process depends on what benefits you’re getting.

You’ll need to give some details about your situation, but don’t worry, it won’t take long.

Food banks or baby banks

Parents in need can also turn to a baby bank.

This is similar to a food bank, but instead of giving out food, families can get free baby items such as nappies, wipes, prams, highchairs and, in some cases, formula.

You can find your local baby bank on the Little Village HQ website.

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.

Published: 14 February 2025

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 14 February 2025

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