20 Not Addressed

Set out detailed timetable for assessing impact of HFSS volume price promotion regulations

Recommendation
It is regrettable that the introduction of the ban on volume price promotions of food high in fat, sugar and salt (HFSS) has been further delayed to October 2025. The Government said that these delays were necessary to allow it to consider the impact on consumers and businesses in the light of the “unprecedented global economic situation”. No justification was provided as to why it will take over two years to make this assessment. The Government should set out a detailed timetable for its consideration of how the regulations restricting HFSS food volume price promotions will impact consumers and businesses.
Government Response Summary
The government reiterates its decision to delay HFSS volume price promotion restrictions until October 2025 due to cost-of-living concerns, but does not provide the requested detailed timetable for assessing the regulations' impact on consumers and businesses during this delay.
Paragraph Reference
83
Government Response
Not Addressed
HM Government Not Addressed
Given the current challenges caused by higher than expected global energy and food prices, following the pandemic, which have already led to an unavoidable increase in the cost of living around the world, the Government does not want to take action now that could contribute to this rise. We have therefore taken the decision to delay the implementation of the volume price promotion restrictions by a further two years, so that the volume price promotion restrictions come into force from October 2025. This delay will support businesses and allow them to focus on making food more affordable for families and make it easier to consumers to make healthier choices. Delaying the volume price promotion restrictions to October 2025 will result in additional years for the health benefits to start to accrue. However, over the long term, we still expect these measures to have a significant impact on obesity. We believe that this is the best approach to tackle the long-term problem of obesity, while recognising the current challenges caused by higher food prices. The volume price promotion restrictions are expected to accrue health benefits of over £2 billion and provide NHS savings of £180m over a 25-year period. The Government welcomes the actions taken by some retailers who voluntarily limiting the promotion of less healthy products before the new regulations come into force. Furthermore, the location restrictions on the placement of less healthy products in key selling locations came into force on 1 October 2022. The location restrictions are the single most impactful policy at reducing children’s calorie intakes. The location restrictions are expected to accrue health benefits of over £57 billion and NHS savings of over £4 billion, over the next 25 years. With the implementation of the location restrictions in 2022, 96% of the expected health benefits of the promotions policy have begun to accrue. Calorie labelling in large restaurants, cafes and takeaways have also been in force since April 2022. Further restrictions on the advertising of less healthy products before 9pm on TV and paid-for advertising online will come into force from October 2025. The volume price promotion restrictions are designed to target volume price deals such as ‘buy-one-get-one-free’ and ‘3 for 2’, where consumers are incentivised to purchase more than they originally intended. Studies show that volume price promotions encourage the over purchasing of less healthy products and result in a greater sales uplift in comparison to simple price reductions. Meal deals are excluded from the volume price promotion restrictions because they are targeted at adults who tend to consume all of the products during the same eating occasion rather than stockpile at home. Meal deals also aim to reduce the cost of a single meal rather than incentivise additional purchases.
Timeline
Recommendation age 2.8 yrs
Report published 28 Jul 2023