My Lords, I beg to move that the draft regulations be approved.
Two thirds of adults in England are overweight or living with obesity, and one in three children leave primary school overweight or obese. Obesity has huge costs to individuals, families and the economy and is one of the few modifiable risk factors for severe Covid-related illness and death. This measure is a vital part of the Government’s healthy weight strategy and will contribute meaningfully towards achieving our ambition of halving childhood obesity by 2030. The instrument that we are discussing today concerns the introduction of mandatory calorie labelling in the out-of-home sector, such as restaurants, cafés and takeaways.
Before I outline what the instrument does, I encourage noble Lords to read the Secondary Legislation Scrutiny Committee’s fourth report, which draws these regulations to the attention of the House. I extend my thanks to the committee for its scrutiny and work.
The instrument requires businesses in England with 250 or more employees to display the calorie content of non-prepacked food and drink items, except alcohol, that are sold ready for immediate consumption. Calorie information must be displayed at the customer’s point of choice, such as on menus, menu boards, online menus, and display labels. To better help customers to understand and use calorie information, businesses are also required to display a short statement referencing recommended daily calorie intake. The wording of this statement is specified in the regulations and must be displayed where it can be seen by customers when making their food choices. As well as helping people make more informed choices, transparency about the calorie content of meals will also support efforts to encourage businesses to reformulate products and reduce portion sizes.
The requirement applies to food sold in England. Scotland, Wales and Northern Ireland have been engaged throughout the consultation process, and the Scottish and Welsh Governments are considering whether to introduce similar requirements in their nations. Subject to Parliament’s approval, the regulations will come into force from 6 April 2022.
We know that people are eating out or ordering takeaways more frequently and that when people eat out, the meals they consume are less healthy. Research suggests that eating out accounts for around one-quarter of adult energy intake and that when someone dines out or eats a takeaway meal, they consume on average 200 more calories per day than if they eat food prepared at home. I know that this is the case in my life.
Research shows that portions of food or drink that people eat out or order in as takeaway meals contain on average twice as many calories as equivalent retailer or manufacturer-branded products. In a supermarket, an average pepperoni pizza is 704 calories compared to 978 calories in the out-of-home sector. I would guess that homemade pizza is less than both.
People’s access to food served in the out-of-home sector is increasing through the accelerated growth of online aggregators such as Deliveroo and Uber Eats. Kantar Worldpanel data suggests that in 2020 these types of businesses grew in value by 172% and serviced 14.5 million shoppers.
Out-of-home calorie labelling supports people to make more informed choices when eating out and encourages businesses to reformulate their food to provide lower calorie options. Research shows that popular UK chain restaurants with calorie labelling serve items with less fat and less salt than those that do not display calorie information. Calorie labelling may therefore encourage businesses to offer healthier products altogether.
Evidence from the US, where calorie labelling in out-of-home settings already has come into effect, reinforces that calorie labelling delivers a small but significant reduction in calories purchased by consumers, who noticed and used the information. Increasingly, consumers want to know how many calories are in the food and drink they buy when eating out or ordering a takeaway. Surveys indicate that nearly 80% of people think that menus should include calories for food and drink items and that 60% of people would be more likely to eat at an establishment that offers calorie labelling on its menus.
Some businesses understand this and are taking the lead by voluntarily displaying calorie information. However, we can do more to ensure that this practice becomes more widespread and consistent across the sector. Previous attempts to encourage businesses to voluntarily display calorie information through the Department of Health and Social Care’s responsibility deal have proved insufficient at driving action on the scale required to make a substantive change to our food environment. That is why we are introducing a mandatory requirement for large out-of-home food businesses.
The importance of the out-of-home food sector to local communities and to the economy is something we are acutely aware of, as is how hard our hospitality sector has been impacted by Covid-19. By requiring only large businesses to calorie label, we are ensuring that smaller businesses which will likely find the requirement more challenging to implement are not impacted. Large businesses account for 49% of all turnover in the out-of-home sector and potentially there are more significant benefits. Our impact assessment estimates that the policy will have a net benefit to the economy of £5.6 billion over the next 25 years.
In conclusion, given the scale of the obesity challenge, we must take action to make the food environment healthier and promote transparency between businesses and consumers. I encourage noble Lords to review the helpful and informative briefing provided by Diabetes UK, which I would be happy to share. Its briefing highlights the importance of this legislation to help people with, and at risk of, diabetes. By taking action to improve our nation’s health, we will be happier, fitter and more resistant to diseases such as diabetes, cancer and Covid-19. I beg to move.
6.04 pm
Amendment to the Motion