Major supermarket offers loyalty rewards on baby formula in huge boost for parents on top of price cuts
A MAJOR supermarket has become the first to offer loyalty rewards on baby formula in a huge boost for parents.
Asda is allowing its customers to pay for baby formula using their loyalty vouchers for the first time from today.
This means that parents who are registered with the supermarket's free loyalty scheme can convert the money in their cashpot into vouchers for formula.
Government legislation prevents supermarkets and retailers from discounting baby formula, or allowing it to be bought through a promotion to encourage mums to breastfeed instead.
The government instead offers Healthy Start vouchers to parents claiming certain benefits, which can be put towards infant formula.
It is understood that Asda's change won't break these rules as it isn't promoting or discounting the products.
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Plus, baby formula won't be available as a star product - an item that can boost your cash pot by 10% when purchased.
On top of this change, Asda has also reduced price of six Aptamil products by an average of 7%.
Tesco is also set to cut the price of five Aptamil products by between 80p and £1 from tomorrow.
It comes after manufacturer Danone agreed to a 7% price cut to retailers.
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Last week, Iceland said it would also be cutting the cost from January 16.
Kris Comerford, Asda's chief commercial officer, said: “For many of Asda’s customers, and families nationwide, we understand that buying baby formula is a vital necessity in their weekly shop, which is why we’re taking swift action to pass on falling manufacturing costs to customers before any other retailer.
"At the same time, we’ve decided to remove exclusions on using Asda Rewards vouchers to pay for baby formula as we want to do everything we can to help families manage their budget and keep their family fed."
It comes after the Competition and Markets Authority (CMA) said formula prices had risen by a quarter over the past two years.
Plus, a report by the British Pregnancy Advisory Service (BPAS) said the rising cost is having a "devastating" effect on families.
The World Health Organisation (WHO) has also urged the government to take action over escalating baby formula prices.
The Sun has contacted Tesco, Morrisons, Sainsbury's, Aldi, Lidl and Iceland to see if they are planning to make a similar change following Asda's announcement.
We will update this article one we hear back.
Tesco, Sainsbury's, Morrisons and Lidl all state in their loyalty scheme terms and conditions that points can't be earned or spent on infant milk or formula.
Iceland has also called on the government to review Healthy Start vouchers, which are currently worth £8.50 per week for babies up to age one.
The value of the vouchers has not increased since April 2021, and currently, they don't cover the cost of even the cheapest formula after recent price increases.
The Sun launched its Baby, Bank On Us Campaign last year to help families with young children in financial hardship.
So far, as a result of the campaign, 56 baby banks have received donations of over 12,500 products from some of the UK's top brands including Ikea and New Look, ranging from baby wipes to high chairs to toiletries and clothes.
The total retail value of donations from our generous readers and supportive brands is estimated to be around £45,000.
What are Healthy Start vouchers?
Healthy Start vouchers are for parents who are pregnant or have a child under four years old.
The vouchers are worth £4.25 a week, or £221 a year.
But those with a child under the age of one get two vouchers - so £8.50 a week - which adds up to £442 a year.
The vouchers can only be used to buy the following:
- Fresh fruit and veg
- Tinned or frozen fruit or veg
- Dried fruit
- Fresh, dried or tinned pulses
- Fresh or long-life pasteurised cow's milk
- Baby formula made from cow's milk
These should not be:
- Any frozen or tinned foods with added ingredients like fat, salt, sugar or flavourings, such as tinned tomatoes with herbs or kidney beans in chilli sauce
- Chips or onion rings
- Tinned fruits in syrup
- Smoothies or juices
- Plant-based milk
- Follow-on formula
- Powdered, condensed or flavoured milk (apart from stage one infant formula)
You can also get free Healthy Start vitamins with the vouchers.
There used to be paper vouchers, but now the money is loaded onto a prepaid card that can be used at any location where Mastercard is accepted.
You can't use the prepaid card for online shopping or to withdraw money from a cash machine, but you can check your balance at an ATM.
How do I claim the vouchers?
To be eligible for Healthy Start vouchers, you need to be at least 10 weeks pregnant or have at least one child under four.
Your family's monthly take-home pay from work must also be less than £408 a week and you need to receive Universal Credit.
If you receive Child Tax Credit you may still be able to apply, for example, if your family's annual income is less than £16,190 or you do not receive Working Tax Credit.
If you're under 18 and pregnant you can claim the vouchers until the baby is born, even if you do not receive any benefits.
To apply, you can use the government website, print out a paper form from the Healthy Start website or request a form from your GP or midwife.
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There's also an option to request a form by calling the Healthy Start helpline on 0345 607 6823.
Once you've applied online, you should receive your card within five to 10 working days.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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