Families could lose supermarket discounts on cereals, yoghurts and other everyday foods under plans to expand restrictions on promotions.
In some examples, buying the same quantity at current prices would cost more than twice as much without the deals.
Products such as bran flakes, porridge, pasta sauces and cholesterol-lowering yoghurt drinks could be reclassified as “less healthy” under the proposals.
The plans have been criticised by economists, food industry figures and opposition politicians, who warn they could increase the cost of shopping.
Prime Minister Andy Burnham entered Downing Street promising a “cost of living government”.
However, the proposed changes come as inflation rises, energy bills put pressure on households and businesses, and Chancellor John Healey prepares to deliver his Budget on October 28.
Industry figures say even some organic and no-added-sugar products could be affected.
Supermarkets are already restricted from promoting foods classed as high in fat, sugar or salt.
Rules introduced last year prevent these products from appearing in multibuy and “three-for-two” offers. They also restrict where the products can be displayed in shops and stop them being advertised on television before 9pm.
The current system uses a nutrient profiling model developed in 2004 to decide which products are affected. The Government now wants to replace it with an updated model from 2018.
This could result in more products being classified as less healthy and excluded from promotional offers.
Industry insiders say cornflakes, Special K, All-Bran, malt loaf, Ambrosia reduced-sugar light custard and Yeo Valley fruit yoghurts could all be caught by the stricter criteria.
The effect on shoppers would depend on the deals available and how supermarkets responded to the changes. However, current promotions show how much more families could pay to buy the same quantities.
At Morrisons, two packs of six Benecol Yoghurt Drinks currently cost £6.80 under a promotion. Without the deal, they would cost £9.
Ten Muller Light Fat Free yoghurts would rise from a promotional price of £4 to £9.50.
At Asda, three boxes of ten Quaker Golden Syrup Porridge sachets currently cost £6. Buying the same 30 sachets without the deal would cost £11.25.
Two boxes of Nestle Shreddies would increase from £5 to £7, while eight Petit Filous yoghurt pots would cost £3.70 instead of £3.
Five GetPro Protein Pouches at Morrisons would rise from £5 to £8.25. Three bottles of Volvic Sugar Free Fruit Flavoured Water would increase from £3 to £4.65.
At Asda, two packs of Fruit Shoot Hydro, which contain no added sugar, would cost £7.08 instead of £5.
Economist Dr Chris Snowdon described the proposals as “petty and vindictive”.
He told The Sun: “This is a petty and vindictive move by the Government, cutting the limits by enough to cost the food industry a fortune in compliance costs while doing nothing for public health. The state is moving the goalposts for no reason. The only effect will be to push up the cost of food.”
Reform UK’s Robert Jenrick said: “Andy Burnham would be mad to go ahead with this. Prices are already high – why does he want to make it even harder for everyone?”
Conservative Shadow Health Secretary Damian Hinds accused Labour of “nanny-state nonsense,” saying: “More nanny-state nonsense from Labour, slapping higher costs for everyday food on shoppers at the tills rather than focusing on the ever increasing NHS waiting list under their watch.
“As a Conservative government, we won’t be punishing families for buying yoghurt, but focusing on fixing the NHS for patients.”
Kate Halliwell, of the Food and Drink Federation, warned that the changes would result in products contributing to a balanced diet being labelled as less healthy.
“It will also jeopardise businesses’ ability to keep investing in creating options that make it easier for people to make simple swaps to improve their health,” Ms Halliwell said, adding that companies were already battling to contain prices amid conflicts in Iran and Ukraine, record European heatwaves this summer, and surging packaging costs.
An industry source cautioned the move would have “a chilling effect” on costs and prices at a time when the Government speaks of offering breathing space to consumers and businesses.
Food inflation rose to 2.5 per cent this month, with the average household now spending roughly £107 per week on groceries, up around 5.3 per cent since July 2025. The Food and Drink Federation forecasts food and non-alcoholic drink inflation will hit 3.9 per cent by December and reach 6.4 per cent by next July.
Retailers have absorbed an additional £440million in energy costs this year and £6.5billion in extra employment costs over the past two years, driven partly by higher National Insurance contributions.
British Retail Consortium chief executive Helen Dickinson urged Mr Healey to relieve pressure on businesses in the Budget, saying: “This would give them breathing space to invest in keeping prices down for households and keeping people in jobs.”
The Health Department maintains that obesity costs the NHS approximately £9.3billion annually, with a record number of children now overweight. Ministers argue the existing nutrient profiling model is two decades old and no longer reflects current dietary guidance.
A Government spokesman said: “We are considering the responses, and will continue to be guided by the evidence on what will best help to tackle the concerning rates of childhood obesity. Tackling the cost of living is a priority for this Government and we will ensure any changes help families make healthier choices while keeping food affordable.”
A public consultation on the proposals closed earlier this year. A final decision is expected shortly.
Mr Healey is understood to be looking at ways to support businesses through reducing red tape, though significant tax cuts are considered highly unlikely.
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