My Lords, obesity is seen as one of the biggest health problems this country faces. The latest national child measurement programme data from 2020-21 showed that around 40% of children leaving primary school were overweight or obese, with one in four living with obesity. Regular overconsumption of food and drink high in calories or the consumption of sugar and fat can lead to weight gain and, over time, obesity, which in turn has a significant impact on health and well-being and increases the risk of certain related diseases.
The Covid-19 pandemic has highlighted the impact that obesity can have on people’s health. Evidence from a University of Liverpool study shows that those
who are overweight or living with obesity and who contract Covid-19 are more likely to be admitted to hospital and suffer worse complications. This measure is part of the Government’s healthy weight strategy, which we hope will contribute towards achieving the ambition of halving childhood obesity by 2030.
The instrument we are discussing today concerns the introduction of restrictions on promotions of less healthy products by volume price and location for retailers in England with 50 or more employees. Location restrictions will apply to store entrances, the ends of aisles, checkouts and their online equivalents—for example, home pages and payment pages. Volume price restrictions will prohibit retailers from offering promotions such as buy one, get one free or three-for-two offers on less healthy products.
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Less healthy products are defined as those that are of most concern to childhood obesity. It is a two-step process to determine whether a product is considered less healthy, which allows the healthiest products within categories to be excluded. First, products will be subject to the restrictions only if they are in the specified categories listed in Schedule 1 to the regulations.
If a product falls into one of these categories, the second stage is to apply the technical guidance to the 2004-05 nutrient profiling model, or NPM. If a food product scores 4 or above, or a drink product scores 1 or above, it will be considered less healthy and cannot be promoted. Healthier products within categories in scope of the restrictions will be excluded and therefore can be promoted.
The requirement applies to food sold in England only. We have engaged with Scotland, Wales and Northern Ireland throughout the consultation process. Subject to Parliament’s approval, the regulations will come into force from 1 October 2022.
The aim of this policy is to restrict the promotion of products considered to be less healthy in favour of healthier options. We hope that this will help to improve children’s diets and to reduce the overconsumption of food and drink high in calories, sugar, salt and fat that contributes to children being overweight and obese. We hope that this will shift the balance of promotions towards healthier options and maximise the availability of healthier products on promotion, making it easier for parents to make healthier choices when shopping for their families.
Data from previous Public Health England reports show that we buy almost 20% more as a direct result of promotions, while less than 1% of food and drink products promoted in high-profile locations are fruit or vegetables. Price promotions increase the amount of food and drink that people buy by around one-fifth and account for around 40% of all expenditure on food and drinks consumed at home. The location of products within stores also significantly affects what shoppers buy, with end-of-aisle displays increasing sales of soft drinks by over 50%.
Data from Public Health England’s sugar reduction evidence report suggests that promotions increase consumer spending by encouraging people to buy more than they intended, increasing their consumption of less healthy products. Research from a study conducted
by Curtin University in Australia shows that children are uniquely vulnerable to the techniques used to promote sales.
Some supermarkets have already made voluntary commitments to reducing such promotions, which the Government welcome. However, these measures are not always implemented consistently or as recommended, so the Government intend to introduce legislation across the market to create—noble Lords have heard this phrase before—a level playing field within the retail sector.
Obesity has significant costs for society. Public Health England has estimated that the indirect cost to the UK economy from obesity-related conditions to be approximately £27 billion per year. The Government hope that this policy will deliver significant health benefits. The Government’s own impact assessment estimates that the policy will have a net benefit to society of around £7 billion over the next 25 years.
Micro and small businesses will not be impacted by these regulations, since the Government recognise that they are likely to find the restrictions more challenging to implement. The Government will continue to work closely with the food and drink industry and local authorities to provide the support needed before implementation of the regulations in October 2022. Guidance is being developed to support these regulations.
The Government want to make the healthier choice the easier one and to support people to lead healthier lives. Together with food companies, supermarkets and health professionals, the Government hope to create an environment to empower consumers to make better choices and to live longer lives in better health. I beg to move.