THOUSANDS of parents are paying more than they need to for baby milk because of a lack of competition in the market, a government watchdog has warned.

At the moment there are two dominant baby formula companies – Danone and Nestle – who make up 85% of all sales.

1

As a result, there is little incentive for these manufacturers to compete to offer the best price, the Competition and Markets Authority (CMA) warned.

The news comes after the boss of Iceland Richard Walker last year hit out at “exploitation” of new parents and called for action to be taken in the industry.

Over the past few years it has become more expensive to manufacture infant formula and these costs have been passed on directly to customers.

Parents often choose baby formula for the first time when they are in vulnerable situations such as in hospital straight after birth.

Often they make the choice when they do not have access to clear, accurate and impartial information, the watchdog warned.

Parents are also often under a lot of pressure to do what is best for their baby.

As a result, they can often choose a more expensive product as they assume that a higher price will mean it is better quality.

This is not true as the NHS advises that “it does not matter what brand you choose, they’ll all meet your baby’s nutritional needs, regardless of price”.

Parents also often listen to advice from friends and family when choosing a formula, which means the brand’s reputation plays a much larger role in the decision making.

Sarah Cardell, chief executive of the CMA, said it is concerned that companies “don’t compete strongly on price”.

She added: “We have identified options for change, but now want to work closely with governments in all parts of the UK, as well as other stakeholders, as we develop our final recommendations.”

The CMA has set out several potential options which could help to improve the industry and reduce the cost for parents.

It wants to provide new parents with clear, accurate and impartial information, for example in hospitals.

The CMA may also allow companies to publicise their prices and price reductions, which they are currently not allowed to do.

It also wants to strengthen labelling and advertising rules as branding is a large part of the reason that parents choose a certain product.

This could be done by requiring manufacturers to use entirely different branding for their infant and follow-on formula.

The CMA may also implement stricter rules around certain messages on packaging.

In the long term the government may also be forced to take more significant action to bring down costs, such as introducing price caps.

The CMA will publish a final report on baby formula in February 2025.

What help is there for parents?

If you receive certain benefits and are pregnant or have at least one child under the age of four then you can apply for Healthy Start vouchers.

You will get:

• £4.25 each week of your pregnancy
• £8.50 each week for children from birth to one year old
• £4.25 each week for children between one and four years old

The money will stop after your child’s fourth birthday or if you no longer receive benefits.

If you are eligible you will be sent a Healthy Start card with money on it that you can use in some UK shops.

The money will be added onto this card every four weeks.

You can use the card to buy:

• 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

To be eligible for the scheme you must be receiving one of the following benefits:

• Income support
• Income-based jobseeker’s allowance
• Child tax credit if your family’s annual income is £16,190 or less, and not getting working tax credit
• Universal credit if your family’s monthly earned income is £408 or less from employment
• Pension credit

You can apply for the scheme on the NHS website.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Unlock the White House Watch newsletter for free

Your guide to what the 2024 US election means for Washington and the world

“The US economy is strong.”

“Joe Biden is not getting credit for falling inflation and low unemployment, therefore, partisanship and media bias must be against him.”

“The US is outperforming Europe, so America’s incumbent party will do better at the polls.”

FT Alphaville spent much of this year trying to dispel these misguided and incomplete narratives:

— It’s (still) the economy (and politics) — stupid
— Why isn’t Joe Biden getting credit for America’s sturdy jobs market?
— How the ‘strong’ US economy feels for poorer Americans, in five charts
— America: a healthy or healthcare economy?

If you missed those, here’s a quick summary:

— America is continental. US GDP, unemployment and inflation data are particularly poor reflections on the economic experiences of households and businesses in different states and counties. For that, one must dig down for local and income-level statistics.
— A high-growth, high-spending economy is not necessarily a sign of a healthy economy. Many Americans are spending a high proportion of their money on rent, healthcare, and food, not discretionary items — and fuelled by debt.
— “Inflation falling, unemployment low=good” is too simplistic when people feel price-levels (cumulative inflation) and job security (opportunities and real wage growth) more palpably.

Frankly, none of this is new. Political fealty, culture wars, and disinformation may all play a part. But, for all those still unconvinced that people’s lived experience of the economy mattered as much as the exit polls and voxpops suggest, here are ten charts we’ve been monitoring all year.

1) A 17-22 per cent rise in the price level across swing states since January 2021 has not gone unnoticed:

2) The cheapest US products have seen the fastest increase in price level; implying lower-income households have faced even higher inflation (aka cheapflation):

3) The change in price level exceeds the change in wage level across most swing states too:

4) Debt delinquencies are also rising faster than the US average in key states:

5) A reminder of how Americans spend their money on services. The bulk of household spending is going towards non-discretionary items such as rent and healthcare:

6) Some workers have had more luck in the post-pandemic labour market than others. The visible relative performance can impact how individuals feel about whether the economy is working for them:

7) Unemployment may still be low, but those on the lowest incomes have grown most worried about losing their job since the start of the year:

8) Americans of all income levels seem to be hearing downbeat news concerning government economic policies. Outsiders may see US exceptionalism on their screens, but the realities on the ground are different, and the wealthier can shoulder it better:

9) All income groups feel worse off than they did when Biden started his term, although it is more stark for the bottom and middle thirds of earners:

10) And finally. The stock market is not the real economy. America’s asset-poor see minimal upside to soaring equity and house prices:

Still don’t trust those exit polls?

Good morning and welcome to your Morning Briefing for Friday 8 November 2024. To get this in your inbox every morning click here.

Firms in the dark on commercial pensions dashboards delivery date

Firms seeking to operate commercial pensions dashboards services (PDS) have no timescale when this will happen despite the Financial Conduct Authority publishing rules they must follow when designing and operating them.

FCA set out rules for pensions dashboards service firms in a policy statement published yesterday (7 Nov.)

Rachel Vahey, head of public policy at AJ Bell, said the lack of timescale is a “huge let down for customers”.

Closing the advice gap

How do we close the advice gap?

That’s the million-dollar question I’ve heard debated time and again since I joined Money Marketing.

The consensus is that artificial intelligence and the introduction of new technology will free up advisers’ time and enable them to take on and serve more clients.

But could it be the banks that hold the key to closing the gap?

Quote Of The Day

There are some more bullish voices out there, including Goldman Sachs who have forecast UK base rate to fall to just 2.75% by next Autumn. The fact the decision to cut rates was almost unanimous will put some powder in this argument.

-Laith Khalaf, head of investment analysis at AJ Bell, comments on latest interest rate decision from the Bank of England.

In Other News

The Pension Protection Fund (PPF) has published its fifth Responsible Investment report, which reinforces its commitment to promoting sustainability in the pensions industry and demonstrates the power industry engagement and collaboration across its asset managers, portfolio companies, industry bodies and peers has had over the last 12 months.

The annual report summarises the stewardship and governance activities carried out by the PPF that have not only driven greater participation and engagement industry wide, but also have improved reporting, risk analysis, transparency and driving positive change.

Barry Kenneth, chief investment officer at the PPF said: “The last 12 months has been a period of evolution and engagement, and this report outlines our continued commitment to align with the Stewardship Code, showcasing the steps we have taken and measures we have advanced to protect and drive value across our portfolio.

Isio, a provider of pensions and employee benefits consultancy, has announced the launch of its new individual service designed to streamline support for NHS employees affected by the McCloud pensions tax roll-back.

The McCloud remedy addresses age discrimination in the 2015 public service pension reforms. It involves rolling back the 2015 scheme benefits into the previous final salary schemes for affected public sector members.

But many senior NHS staff will have to also revisit up to seven years of self-assessment tax forms by 31 January 2025 (or 3 months after being notified if later).

The new service will help these NHS Pension Scheme members, who will receive a Remediable Pension Savings Statement (RPSS), to collect the required data and submit it to HMRC.

Isio’s service manages the entire process, allowing members to easily claim tax refunds where appropriate (and in some cases pay additional tax charges). The service is to be also available for senior police employees affected by the same issue.

Did You See?

Greg Neall, chartered financial planner at Wake Up Your Wealth, chides journalists, experts, and commentators over their “scaremongering” articles in the lead up to the autumn Budget.

He writes: It’s impossible to count the number of headlines written over the last few months declaring the 25% tax-free pension lump sum was in danger of being scrapped in last week’s Budget to boost clicks and comments.

Anyone with a working brain and the slightest bit of political nous could see there was no way the chancellor would do something so politically suicidal, especially after the Winter Fuel Allowance fiasco. Shame on those claiming it was ever likely.

There was also a glut of poorly-researched pieces on how the lump sum allowance might come down to £100,000.

Read the full article here.

Parents have been “paying over the odds” for baby milk because of a lack of competition in the formula market, a government watchdog has said.

It stopped short of recommending price controls, but said they remain a possibility, adding parents have been “shouldering the costs” of price increases in the market for years.

The Competition and Markets Authority’s (CMA) interim report said the baby milk industry needed a shake-up to help parents struggling to afford it.

“We’re concerned many parents opt for more expensive products, equating higher costs with better quality for their baby,” CMA chief executive Sarah Cardell said.

Just two companies – Danone and Nestle – control the majority of the UK market.

A spokesperson for Danone said it “will engage with the CMA as it develops its final findings and recommendations”. Nestle has previously recommended the investigation.

The market is currently regulated so that promotions, such as a loyalty points or discounts, are banned.

This is to encourage breastfeeding, but the CMA raised concerns about “unintended consequences, contributing to consumers paying higher prices”.

THOUSANDS of hard-up households could get £115 free cash paid directly into their bank accounts before Christmas.

Struggling households can claim the money through the government’s Household Support Fund (HSF) now.

1

The HSF was extended for the sixth time from October 1, meaning households can claim help from a fresh £421million pot of funding.

Councils across the country have received a portion of the cash to distribute to those in need.

But there is a postcode lottery to determine who qualifies as each local authority can set its own eligibility criteria.

Despite this if you have a limited amount of money or savings in the bank, or are deemed to be vulnerable or on benefits, you will probably qualify for help.

Money will either be given to you as a direct cash transfer, shopping vouchers, energy support or in another form.

The amount handed out varies and the local council will determine this.

In York people of working age who receive Council Tax Support can apply to receive a payment of £115 directly into their bank account.

Those eligible for the payment will receive a letter this month with the instructions to register.

Those who need assistance with food, energy or water bills who do not receive Council Tax Support or are over pension age can also apply for a discretionary payment.

If you apply for a discretionary payment you will need to complete a means-tested assessment including personal financial information.

If you don’t live in York you should check with your local authority to see what support it is offering.

Rotherham Council is now offering struggling families £250 grants to fight the cost-of-living increase.

Those living in Birmingham can claim £200 to help with soaring winter energy payments.

Meanwhile, Wakefield Council is offering support to pensioners who will miss out on the winter fuel payment this year.

What is the Household Support Fund?

The Household Support Fund was introduced in October 2021 by The Department for Work and Pensions (DWP) to support households most in need.

The funding is distributed between councils, and they are then responsible for dishing out the cash on an application basis.

For example, Birmingham City Council have announced they will hand out free £200 cost of living payments to help its residents cope this winter, as one of its approaches to the fresh fund.

How do I apply?

In order to be eligible for help, you may have to be in receipt of benefits or provide proof of being in financial difficulty.

Each council has a different application process – so you’ll have to ask your local authority or find out via your council’s website.

Not all councils have decided how they will distribute the cash yet, so you may have to wait to get all the information.

To find out how to contact your local authority, use the gov.uk authority tool checker.

In the last round of funding, some residents received their share automatically, while others had to apply.

For example, Haringey London Council is issuing automatic payments to eligible residents, as well as a support fund which can be applied to.

It is also issuing payments to schools, which means they can distribute free school vouchers.

In previous years, other authorities have offered cost of living vouchers – such as Coventry City Council.

This has included a Community Supermarket scheme, where all Coventry residents could pay £5 weekly and receive a basket of food worth up to £25.

Residents of Effingham, near Guildford, have been able to claim up to £300 free cash to help with the cost of living crisis.

Surrey council previously poured £300,000 into food banks, where photo ID and proof of address is required, but no referral needed.

While some schemes, such as the Surrey Crisis Fund, which can offer up to £100 to those immediately in need, are reserved for those who also rely on other means-tested benefits.

How has the Household Support Fund evolved?

The Household Support Fund was first launched in October 2021 to help Brits pay their way through winter amid the cost of living crisis.

Councils up and down the country got a slice of the £421million funding available to dish out to Brits in need.

It was then extended in the 2022 Spring Budget and for a second time in October 2022 to help those on the lowest incomes with the rising cost of living.

The DWP then confirmed a third extension of the scheme through to March 31, 2024.

Advertisement

Former chancellor Jeremy Hunt extended the HSF for the fourth time while delivering his Spring Budget on March 6, 2024.

In September 2024, the Government announced a fifth extension.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

A FAMILY holiday abroad doesn’t have to expensive – if you know where to look.

EasyJet holidays has a range of kid-friendly resorts from Spanish islands to Turkey and Tunisia that are great for year-round sunshine and family fun.

5

Keeping both adults and younger guest entertained is a tricky balance. This might mean an on-site waterpark and kids club, as well as a great bar and evening entertainment for the older guests.

And many of easyJet holidays resorts are right by beautiful beach towns and cities, so there is more than enough to do outside of the hotels as well.

All of their packages come with return flights, as well as transfers and 23kg of baggage and ABTA and ATOL protection.

We’ve rounded up four amazing destinations that have beaches, attractions and unique nature to keep families entertained – as well as an easyJet holidays resort nearby.

Alanya

Smaller than its neighbour Antalya, the Turkish Riviera’s Alanya still has enough to keep both adults and kids busy.

The town’s main attraction is its 13th century fortress, Alanya Castle which is worth walking round for the views alone (you can get a cable car to keep those with little legs happy).

If you are seeking a day at the seaside, you will want to head to Kleopatra Beach – named after the Egyptian Queen who legend says bathed there. There’s a huge 2km stretch of soft white sand and its great for kids too.

There are all of the facilities you could want from showers and toilets to nearby playgrounds and sunloungers, although some you will need to pay for.

Don’t worry about getting too cold either – the town has 300 days of sunshine a year.

Just because Alanya is smaller, don’t think you can’t have a good night out. Head back to the harbour which is where you will find the buzzing nightlife.

It might be difficult to get the kids to leave your hotel though. The four-star Eftalia Village resort has huge pools as well its own aquapark with tropical tower, pirate ship and water slides on-site.

STAY: easyJet holidays has seven nights’ all-inclusive at the 4* Eftalia Village in Antalya from £332pp including Gatwick flights on April 25, 2025, 23kg of luggage and transfers.

5

Advertisement

Tenerife

The largest of the Canary Islands, Tenerife has all of the beaches, bars and restaurants loved by British holidaymakers.

But the island has much more to it, from paragliding to hiking up Mount Tiede (the world’s third largest volcano) or exploring Anaga rainforest, the only one on the island.

At the upmarket resort town of Costa Adeje there is a bit of everything if you want a thrill or chill.

Here you can opt for an afternoon wind surfing of jet skiing. Get into the swing of things at Golf Costa Adeje or book a boat tour to spot whales and dolphins.

Don’t forget to visit Siam Park, often voted the world’s best waterpark, with splashing rides and slides that will keep the kids amused all day.

And the three-star Laguna Park is the perfect base – it’s right by the beach and is just three minutes by car to Siam Park.

STAY: easyJet holidays has seven nights’ all-inclusive at the 3* Laguna Park 1 in Tenerife from £387pp including flights from Gatwick on December 3, 2024, 23kg luggage and transfers.

5

Advertisement

Fuerteventura

While smaller than Tenerife, the Canary Island’s Fuerteventura is still a contender for amazing weather into the winter, enjoying balmy temperatures in the early 20 degrees.

One of the unique activities is going dune buggying across the Corralejo Natural Park, exploring the volcanic landscape with kids able to take part in the action.

The island is even known for its cheese – so why not go on a goats cheese making experience?

When its time to decompress, the island’s golden beaches are often compared to the Caribbean, with the clear waters stretching out for miles.

One of the most famous is the Popcorn Beach – called Playa del Bajo de la Burra – where the sand looks like, you guessed it, pieces of popcorn (just make sure to leave it behind).

If you want something more peaceful, don’t miss out on a day trip to Costa de Antigua, a quiet town with museums, nature trails and white-washed buildings.

The three-star Elba Lucia Sport and Suite Hotel has all you could want for some activity too, with facilities for tennis, squash, basketball, and the trendy new padel.

STAY: easyJet holidays offers seven nights’ half-board at the 3* Elba Lucia Sport and Suite Hotel in Fuerteventura from £288pp including Birmingham flights on November 21, 2024, 23kg of luggage and transfers.

5

Tunisia

Tunisia is seeing a boom in holidaymakers seeking winter sun without the hefty price tag.

The city of Sousse’s main beach is a gorgeous 10km stretch of golden sands lined with palm trees.

But a venture into the city is worth it for a history lesson – there is the 15th century Medina of Hammamet as well as as the huge Sousse Archaeological Museum with an extensive collection of Roman artifacts.

But the smaller travellers may well prefer the thrills and splashing chills at Carthageland, North Africa’s first theme park, with enough water rides to keep little ones cool.

Everyone will be happy with a stay at the Occidental Sousse Marhaba too.

The resort recently underwent a renovation, so expect beautiful new spas and sea-facing pools with slides.

STAY: easyJet holidays offers seven nights’ all-inclusive at the 4* Occidental Sousse Marhaba in Tunisia from £259pp including flights from Gatwick on December 13, 2024, 23kg luggage and transfers.

5