Parents will be able to buy infant formula in supermarkets using loyalty points and vouchers under a government plan to make baby milk more affordable.
The measures, made official on Wednesday (Dec 3), will most benefit lower income families and is one part of the wider child poverty strategy set be announced shortly.
The price of infant formula has increased dramatically in recent years, with a standard tin costing between £12 and £15.
As well as allowing parents to access discounts on infant formula, the government has agreed to adopt proposals from the competition watchdog to ensure parents are not pressured into buying more expensive brands.
The change is aimed at giving families confidence to choose cheaper options, which the government and the consumer watchdog estimate could save those who cannot or choose not to breastfeed up to £500 a year.
Supermarkets and retailers will also get updated guidance, confirming the products can be bought using gift cards, vouchers, loyalty points and coupons - giving parents extra savings.
The changes will help those who cannot - or choose not to - breastfeed their babies to provide them with the best possible start in life, alleviate child poverty and put hundreds of pounds back in parents’ pockets.
It follows a detailed market study from the Competition and Markets Authority (CMA) which found families opted for more expensive products and could be influenced by messaging on packaging that may be hard to verify.
Speaking at PMQs, Prime Minister Keir Starmer, said, "Mr Speaker, our budget took important measures to tackle the cost of living. That’s why we have frozen rail fares, prescription charges and cut energy bills for every family by £150.
"Today, we are going further. 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. I can announce today that we are changing that. We will take action to give parents and carers the confidence to access infant formula at more affordable prices.
"With clearer guidance for retailers and helping new parents use loyalty points and vouchers, together that will save them up to £500 before their child’s first birthday. That builds on our action to lift over half a million children out of poverty, extending free breakfast clubs and our child poverty strategy will be published later this week."