Parents should be able to use supermarket loyalty points for baby milk

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Parents could save up to £540 a year by switching from between baby milk formula brands, a regulator has said following a probe into the market.

Parents can feel guilty about using lower-priced brands, because they think they are somehow not as good, the Competition & Markets Authority (CMA) said.

But babies get enough nutrients from lower-priced formulas, it said.

It also recommended that formula have plain packaging in hospitals, and parents should be allowed to buy baby milk in supermarkets using loyalty points and vouchers.

The CMA compared various brands of formula, and found that the difference in prices over the first year of a baby's life can hit parents in the pocket.

Buying current market leader, Aptamil, rather than Little Steps, which is one of the cheapest formulas, would cost parents £300 more per year, it said.

Buying the Aptamil premium brand, Aptamil Advanced, rather than Little Steps would cost £540 more.

At present the way the system is set up is not working well for parents, the CMA said.

Baby milk brands often lose money on formula they give to hospitals, because they know that once parents start using a brand, they will buy it in a supermarket at a higher price.

But formula milks are tightly controlled by law, and must provide essential nutrients for babies, and be safe.

Plain packaging would break the link between the milk parents use in hospitals and what they buy afterwards, the regulator said.

The regulator also said supermarkets' baby milk labels should let people know that all infant formula has the right nutrients for babies.

Retailers should also make it easier for parents to compare prices, and a ban on advertising should be extended to include follow-on formula.

Restrictions on price promotions and discounts on formula should stay in place so mothers are not discouraged from breastfeeding, it said.

But people should be allowed to use points, gift cards and vouchers to get the most for their money, its chief executive told the BBC.