The Minister for Care (Stephen Kinnock)
I thank and congratulate my hon. Friend the Member for Blackpool South (Chris Webb) for securing this debate on such a vital matter. He is a true champion for his constituents, and he is rightly concerned about people and families in his constituency who are struggling with the cost of living. I am aware that his constituency experiences high levels of deprivation, which creates challenges for the people who live there.
After 14 years of Tory neglect and incompetence, this Government are committed to improving the lives and health of everyone. However, as my hon. Friend will be all too aware, we have a significant challenge on our hands in transforming our health services so that they work better for the people who need them. When we came to office on 4 July, we made it clear that we would fix our broken NHS. We commissioned Lord Darzi, who published a report that laid bare the true extent of the challenges facing our health service, giving us the frank assessment we needed in order to face those problems honestly and to do the hard work required to fix them. That is why, in the Budget, we announced an additional £25.7 billion of health spending over this year and next.
However, investment works only if it is coupled with reform. That is why we have launched our 10-year health plan, which will address the root causes and fix the foundations by investing in preventive care, expanding mental health services and modernising NHS infrastructure to radically reform the NHS based on three seismic shifts: from hospital to community, from sickness to prevention and from analogue to digital. Our health mission also aims to reduce the time people spend in ill health by tackling health inequalities and driving economic growth.
My hon. Friend will be aware that children are at the centre of our health mission and that we are committed to raising the healthiest ever generation of children. Infant feeding is critical to a baby’s healthy growth and development. We are committed to giving every child the best start in life, and that includes helping families to access support to feed their baby. The family hubs and start for life programme is central to that. Through that programme, 75 local authorities across England are improving their infant feeding support for families, including breastfeeding support. Those services are helping parents to access face-to-face and virtual support whenever they need it, and in a location that suits them, be that in their home, their family hub or a hospital setting. We want to build on the actions that local areas are already taking through the programme, so that families can access the support they need when they need it to meet their infant feeding goals.
Breastfeeding has significant benefits for mothers and babies, but breastfeeding rates in England remain low compared with those in other countries. Data shows that around 53% of babies were breastfed at six to eight weeks, but that that dropped significantly by six months. My hon. Friend will know that in response to concerns about breastfeeding internationally, the World Health Organisation instigated an international code to promote breastfeeding and restrict the inappropriate marketing of breast milk substitutes that can discourage breastfeeding. The UK Government are absolutely committed to implementing that code.
Although breastfeeding has significant health benefits, we recognise that it is vital that families who cannot or choose not to breastfeed have access to infant formula that is both affordable and high quality. The price of infant formula has been brought back into the spotlight with the publication of the Competition and Markets Authority’s interim report last week on competition in the infant formula market. It highlighted the fact that the price of some infant formula has increased by more than 25% in recent years, and as my hon. Friend pointed out, parents and carers have had to bear the brunt of those price increases.
The Government’s infant formula regulations do not set the price of infant formula, which is agreed by infant formula manufacturers and retailers. Instead, they ensure that parents and carers have access to the highest quality and safe infant formula. The regulations cover infant formula and follow-on formula, which covers the first 12 months of a baby’s life. They require all infant formulas to comply with robust nutritional and compositional standards, meaning that they meet all the nutritional needs of babies, regardless of price or brand. However, the regulations rightly restrict the inappropriate marketing and promotion of infant formula. That is because there is considerable evidence that advertising directly to the consumer influences people’s decision on how to feed their babies.
My hon. Friend has raised questions about loyalty card points and vouchers from food banks or local authorities being used for purchasing infant formula. The regulations seek to restrict inappropriate marketing techniques that induce the sale of infant formula, including special sales or discounts, so as not to discourage breastfeeding. Loyalty card points on their own are not contentious within the infant formula regulations, and the regulations do not specifically mention them. I agree that consumers should be able to use their loyalty card points to achieve a saving on their shopping. However, my hon. Friend will be aware that numerous loyalty and reward card schemes are available, and they vary significantly between retailers. Some may offer special discounts beyond awarding loyalty points. Loyalty card points should not be used as an incentive or as a reward to purchase infant formula. There is unlikely to be a one-size-fits-all approach, and it is for businesses to ensure that their activities are in compliance with the regulations.
My hon. Friend asked about food banks, and I wish to be clear that the regulations do not prohibit infant formula from being distributed via food banks, including where they may issue vouchers to families. Food banks set their own policies on whether to distribute infant formula. I recognise the important role that they play in supporting some of our most vulnerable families. We have published guidance to businesses on the regulations, and can provide further clarity on those issues where needed.
My hon. Friend rightly mentioned the CMA’s report, and I wish to address that in more detail. The CMA looked at competition across the infant formula sector, including the regulatory framework, consumer behaviour and manufacturer behaviour, and it assessed the impact on market outcomes. It concluded that multiple factors are resulting in poor market outcomes for consumers, including the behaviour of infant formula manufacturers and retailers, and that those require a response beyond the regulations alone. The CMA has been clear that it recognises the public health importance of the regulations, and that they ensure that all infant formula is suitable for meeting the health and development needs of babies, regardless of price. However, it suggests that restrictions in the regulations on price promotions may be softening competition on prices, and it is also concerned about enforcement of the regulations.
Furthermore, the CMA is concerned that parents and carers are not being provided with sufficient information to make well-informed choices, and that their choices are often made in vulnerable situations after giving birth in healthcare settings. In these circumstances, they are unable to make choices that best meet their needs and budgets. The CMA has other market-based concerns about infant formula being indirectly promoted by infant formula manufacturers via the marketing of follow-on formula and growing-up milks, and about how statements on products may influence parent and carer choices.
To understand how the visibility of products online, in-store and in hospitals drives choices, the CMA commissioned qualitative research, which it published alongside its interim report. We will be carefully considering all the issues and options put forward by the CMA as it develops its final recommendations for Government early next year.
I understand that many families are struggling to meet the cost of feeding their baby, and the Government are committed to helping families most in need to access support. The Budget announcement on extending the household support fund will help those facing financial hardship with the cost of essentials. The Government’s Healthy Start scheme promotes a healthy diet for pregnant women, babies and young children by providing funds that can be used to buy or be put towards the cost of infant formula, as well as fruit and vegetables, pulses and milk. My hon. Friend has suggested that the value of the Healthy Start scheme should be increased. He may be aware that in April 2021, the value of the scheme increased by 37%.
Caroline Voaden (South Devon) (LD)
The Government have repeatedly said that they will not consider lifting the two-child benefit cap, but as we have been hearing from Members, the cost of infant formula can be prohibitive for parents who are not particularly well off. Will the Minister again consider lifting the two-child benefit cap, which we know is the biggest driver of child poverty in the UK? That would mean that fewer parents face difficult choices when it comes to paying for good-quality food.
Stephen Kinnock
When this Government came into office on 4 July, we inherited the worst public finances since the second world war. We were elected on the basis of a manifesto that stated we would return fiscal responsibility and discipline to the management of the British economy. All of that means that we have had to take some hard choices. I do not think that a single member of the parliamentary Labour party wants to have the two-child cap in place, but the reality is that the profound irresponsibility and recklessness of previous Conservative Governments has left us with no choice but to take some difficult decisions. I hope that as we start to instil fiscal responsibility and bring growth back into our economy, we will be in a position to look again at the public finances, but we have to take it one step at a time because of the catastrophic situation left to us by preceding Administrations.
On the Healthy Start scheme, I add that pregnant women and children under four and over one each receive £4.25 a week, and children aged under one each receive £8.50 a week.
I once again thank my hon. Friend the Member for Blackpool South for raising this really important matter. I fully appreciate that there is no quick fix to reduce the prices of infant formula, which are set by manufacturers and retailers, but I have outlined the help available through Healthy Start for eligible families. I want to assure him that we are committed to addressing the concerns raised by the CMA so that the infant formula market delivers the better outcomes that parents deserve.
Question put and agreed to.