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

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

British Airways owner International Airlines Group has reported a second summer of strong profits as demand for travel in Europe and across the Atlantic remained robust.

The Anglo-Spanish company reported an operating profit before exceptional items of €2.01bn for the third quarter, 15 per cent higher than a year earlier and well above analysts’ expectations. Shares rose 6 per cent in early trading on Friday in London.

IAG, which owns five airlines including BA, also announced a €350mn share buyback programme, reflecting “our confidence in the strategy and business model, as well as the long-term prospects for the business”.

“Demand remains strong across our airlines and we expect a good final quarter of 2024 financially,” said IAG’s chief executive Luis Gallego.

IAG’s bullish outlook contrasts with its rivals in Europe, which have struggled to match last summer’s record-breaking profits.

It also comes despite BA facing major operational problems. Flight delays and cancellations have risen significantly at the UK-based carrier since the Covid-19 pandemic, even though the company put extra resources into this summer’s operations at Heathrow, which suffers from congestion and air traffic delays

Industry executives believe BA will have to do more, even at the expense of future financial returns, and the airline has trimmed back its winter flying schedule.

IAG said the group had an “ongoing focus on improving our customer propositions and operational resilience”, and cut its forecast for annual capacity growth from 7 per cent to 6 per cent.

The company pinned this on “the impact of disruption and aircraft availability”.

IAG’s direct rivals Lufthansa Group and Air France-KLM both reported a drop in third-quarter earnings amid higher costs and operational problems. Europe’s two major low-cost airlines Ryanair and Wizz Air also both reported substantial falls in quarterly profits.

IAG is not immune to the wider trends facing the industry, but its particular exposure to the transatlantic market and high-spending holidaymakers travelling in business and first class have left it particularly well-placed, analysts said.

Its strong quarterly performance was built on its two core markets: flying passengers across the Atlantic and on shorter regional trips in Europe.

IAG said passenger unit revenue, a rough proxy for ticket prices, rose 1.2 per cent, “despite an exceptionally strong comparative quarter in 2023“, again bucking a trend seen at many other airlines that have been unable to keep raising fares.

BA’s unit revenue across the Atlantic was “particularly strong”, but Ireland’s Aer Lingus suffered from a pilots’ strike and more competition in its Dublin base.

The Entertainer toy shop chain says it has been forced to drop plans to open two new stores after the government said it would raise National Insurance (NI) Contributions for employers.

Chief executive Andrew Murphy told the BBC the higher taxes, announced in last week’s Budget, meant it could no longer go ahead with the shops and it had also frozen hiring at its head office.

A number of companies, including Sainsbury’s and Marks & Spencer, have hinted that Labour’s changes to NI could result in higher prices for customers.

The Treasury said: “We had to make difficult choices to fix the foundations of the country.”

Last week, the government announced that the employers’ NI rate will rise from 13.8% to 15% from next April. The threshold at which firms will start to pay the tax has been lowered from £9,100 to £5,000.

The move is projected to raise about £25bn a year. It follows two NI cuts for workers under the last Conservative government which cut tax revenues by around £20bn.

Labour said that the rises were needed to “restore desperately needed economic stability to allow businesses to thrive”.

Mr Murphy told BBC Radio 4’s Today programme: “There’s no argument with the government’s ultimate goals… simply the balance with which they pursued them.”

He said The Entertainer, which has 166 shops and employs 2,000 people, had chosen two new stores and done viability assessments on them.

“We were just about to initiate the work and unfortunately the changes to National Insurance in particular just tipped that balance so those stores will now not be opening.”

On Thursday, Sainsbury’s chief executive Simon Roberts said the changes to NI would add around £140m in costs to the supermarket group.

He said: “I don’t think you can shy away from the fact that, because of the changes in everyone’s cost base, it is going to feed through into higher inflation.”

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?

After the Retail Distribution Review was introduced in 2012, most UK banks stopped offering financial advice to all but their wealthiest clients. This was mainly due to the higher risks and costs now involved.

If this means that more people can get access to financial advice, it’s not necessarily a bad thing, says Ball

Their departure created a big opportunity for Hargreaves Lansdown, St James’s Place and other wealth managers. But the tide could now be turning.

In August, HSBC announced plans to double its assets under management to £100bn and become one of the top-five wealth managers in the UK in the next five years.

“In order to fulfil this vision, we are growing our national team of wealth advisers and relationship managers at scale,” it said.

But it’s not just HSBC. Barclays and Lloyds have also made moves back into wealth management. And, according to two experts, that can only be a good thing.

Mass-affluent market

Many advice firms no longer touch anyone with less than £250,000 in assets because it is not profitable for them to do so.

So, could banks help solve the problem? Hoxton Wealth chief executive Chris Ball believes so.

We should embrace the banks with open arms if we really want to close the advice gap

“These banks are focusing on the ‘mass affluent’ market — as in people with £75,000 to £250,000 in deposits,” he says. “There’s a massive opportunity here, because this group of clients need advice nearly as much as the ultra-high-net-worth individuals do.”

NextWealth managing director Heather Hopkins agrees.

“NextWealth research shows that the average portfolio size for financial advice firms is over £400,000. There is a huge, untapped market out there,” she says.

“One of the challenges we face as a nation is that people don’t seek out advice. The more firms that shout about the value and availability of advice, the more people will seek it out.”

The resurgence of the banks may put some wealth managers’ noses out of joint, but Hopkins says they needn’t worry.

Many advice firms no longer touch anyone with less than £250,000 in assets

“Demand for advice far outstrips supply, so I don’t see banks competing with traditional wealth managers.”

Ball agrees that banks do not pose a threat.

“If it means that more people can get access to financial advice because the banks make it cheaper to do so, I don’t necessarily see that as a bad thing.

“As a profession, we should really focus on the positives of what we are doing and not the negatives of what the banks are doing.”

Independence

Ball thinks the banks will have tied products, and “a lot of it will be around product sales rather than giving proper, holistic financial planning”.

The resurgence of the banks may put some wealth managers’ noses out of joint, but Hopkins says they needn’t worry

Therefore, his message to wealth managers is simple: “Keep doing what you’re doing — giving great, independent financial advice. That independence bit, I think, will be key.”

The Lang Cat consulting director Mike Barrett agrees.

“For these types of services, advice is rarely the product. It’s about the banks wanting to sell more of their own funds.

“As a consequence, the vast majority of the advice profession should have nothing to fear from these offerings.”

When I spoke to the FCA’s Nick Hulme, head of advisers, wealth and pensions, he told me the regulator was open to banks entering the sector.

“Financial advisers can do their bit — they are already active in the market and very knowledgeable.

It’s not just HSBC — Barclays and Lloyds have also made moves back into wealth management

“If there are other players that are going to come in to help reduce that advice gap, which this country really needs, then we’re agnostic to who that is.”

Hulme added that the regulator was “absolutely on board and behind anyone with the right intentions and motives”.

As for an old friend we haven’t seen for a while, we should embrace the banks with open arms if we really want to close the advice gap.

Dan Cooper is news editor

This article featured in the November 2024 edition of Money Marketing. 

If you would like to subscribe to the monthly magazine, please click here.