Supermarket loyalty cards to help parents save up to £500 before child’s first birthday

"For too long, parents have been pushed into spending more on infant formula than needed, told they're paying for better quality, and left hundreds of pounds out of pocket," he said.

"I can announce today that we're changing that."

The move follows recommendations from the Competition and Markets Authority, which found current regulations were inadvertently keeping prices high for parents who cannot or choose not to breastfeed.

A typical tin of formula currently costs between £12 and £15, with prices rising by around 25 per cent over the past two years.

Promotions on infant formula have been banned in a similar way to tobacco and lottery products under measures designed to encourage breastfeeding, which the NHS considers healthier for infants.

However, the CMA found the rules had produced an unintended impact on competition.

The regulator warned in February that the restrictions were stopping retailers from competing on price and meant families were paying more than necessary.

Uncertainty also existed among some retailers about whether loyalty schemes could legally be used to purchase infant formula because of prohibitions on direct or indirect promotion.

Charities had raised concerns that rising costs were forcing some families to water down formula or cut back on other essentials.

The CMA reported that families could save about £540 a year by switching to lower priced brands, all of which meet the nutritional standards required for sale in the UK.

The market is dominated by three major suppliers — Danone, Kendal and Nestle — which together account for around 90 per cent of all infant formula sales.

Regulators found that the price of certain brands exceeded the weekly value of some benefits payments, leaving parents in difficult financial situations.

Health Secretary Wes Streeting criticised how manufacturers marketed their products to new families.

Mr Streeting said: "It's not right that manufacturers have been able to package up these products in a way that plays on the instincts of new mums and dads who are just trying to do what's right for their child".

He said that the new measures mean parents "will have confidence in the formula they are buying, no matter the price, and can now make the most of supermarket loyalty schemes, too".

UNICEF Baby Friendly Initiative director Shereen Fisher welcomed the change and described infant formula as "a basic necessity" for many families.

"For too long, families have faced inflated prices for this essential product."

She added: "Today's announcement signals the first step to tackle these issues, improve affordability and strengthen infant feeding support".

NCT chief executive Angela McConville said ministers could have strengthened the reforms further.

She said: "Stronger rules on labelling and advertising are still needed, including a pre-approval process for all infant formula labels to make sure claims are accurate and not misleading.

"We also wanted to see brand influence removed from healthcare settings altogether, with standardised labelling used wherever parents receive feeding information or support."

The British Retail Consortium (BRC) offered a more positive response to the Government's plans.

Assistant director of food Andrea Martinez-Inchausti said: "We look forward to working through the detail with them to implement the necessary changes".

Authorities across all four devolved nations have agreed to support the Government's response.

Aldi has announced it will extend its baby formula price freeze until summer 2026, following the Government’s pledge to better educate parents about affordability.

The UK’s fourth‑largest supermarket will continue selling its Mamia First Infant Formula at £6.99 – around £5 cheaper than the average price elsewhere.

The move comes just after ministers unveiled a new child poverty strategy, stressing that all infant formula sold in Britain must meet the same strict nutritional standards regardless of brand or price.

Julie Ashfield, Aldi UK’s Chief Commercial Officer, said: “At Aldi, we’ve always believed people shouldn’t have to choose between great quality and low prices – which is why we welcome the Government’s pledge to better educate parents about baby formula.”

She added: “All infant formula sold in the UK must meet the same strict nutritional standards.

"Clearer guidance will help those who can’t, or choose not to, breastfeed feel confident they’re doing what’s right for their baby and their budget.”

The announcement is the latest in a string of initiatives aimed at supporting parents.

Aldi’s Mamia New Parent Fund, offering £100 vouchers to families every week until March 2026, remains open, while the retailer has also partnered with perinatal mental health charity PANDAS Foundation to include on‑pack guidance across its baby wipes.

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