NHS-branded baby formula could save Asda, Sainsbury's, Tesco, Morrisons shoppers money

Anc NHS-branded baby formula could prevent parents paying too much, a watchdog has said. The Competitions and Markets Authority (CMA) has issued an interim report on the infant formula market - which could save mums and dads who shop at Asda, Sainsbury's, Tesco, Morrisons.

The Labour Party government and NHS could offer its own low-cost baby formula under a brand such as the NHS to combat the high prices and lack of choice in the market, the CMA says. Sarah Cardell, the chief executive of the CMA, said: “We’re concerned that companies don’t compete strongly on price and many parents – who may be choosing infant formula in vulnerable circumstances and without clear information – opt for more expensive products, equating higher costs with better quality for their baby.”

The provisional findings, which will feed into a final report to be published early next year, include some backstop measures that the CMA said were not actively recommended but that the government could make “with the aim of bringing prices down directly”.

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“This intervention aims to introduce greater choice for parents and a lower price point,” the CMA said. “In turn, it may also put downward pressure on other manufacturers’ prices.” It comes after Iceland boss, Richard Walker, has called on the UK government to introduce a price cap.

The calls from the frozen food specialist boss come amid hopes of stopping parent “exploitation” in the infant formula market. “Parents’ deeply entrenched behaviours in this market, understandably driven by wanting to do what is ‘best’ for their baby, may mean that those measures have limited impact in bringing down prices or giving parents confidence to purchase cheaper options, at least in the short to medium term,” the CMA said.

The report added: “More interventionist measures may therefore be needed to bring prices down in the market more directly, and with more certainty.”