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Suppliers of branded goods including baked beans and pet food have “pushed up prices by more than their costs”, according to the competition watchdog.

The Competition and Markets Authority (CMA) has been examining 10 product categories in a bid to see if shoppers, already struggling amid the continuing cost of living crisis, are being ripped off.

It said that while some increases were justified, to cover rising costs from elements such as energy and ingredients, there was clearly some profiteering – a finding the consumer group Which? described as “shocking”.

“The evidence collected by the CMA indicates that, over the last two years, around three-quarters of branded suppliers in products such as infant formula, baked beans, mayonnaise, and pet food – have increased their unit profitability and, in doing so, have contributed to higher food price inflation“, the regulator’s statement said.

It went on to explain, however, that the shifts were likely to have backfired somewhat as shoppers had clearly switched to cheaper, supermarket own brand, alternatives in a bid to save cash.

The regulator will hope that the competition will help prices of branded goods come down.

But brands told the inquiry that when their costs started to fall they would offer promotions to customers, rather than cut the standard costs of their products.

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‘This cannot carry on’

The CMA said that more study was needed, including in the baby formula sphere that has been the subject of work by Sky News and seen the World Health Organisation declare that families were being “exploited”.

However, it did find evidence of unjustified price increases, with costs to consumers up by 25% over two years, and cited concern that two companies, Danone and Nestle, control 85% of the market.

Calls for baby formula price cap will rise


Tom Parmenter - News correspondent

Tom Parmenter

National correspondent

@TomSkyNews

By laying out the simple fact that the formula milk price rises parents face in the shops do not equate with the “input costs” of making the product, the CMA is putting the formula industry firmly in the spotlight.

It’s already being called out as profiteering by campaigners, but the regulator is now singling out the formula industry for further interrogation.

It says quite clearly: “Evidence suggests that branded suppliers of baby formula have also increased their prices by more than their input costs.”

This year Sky News has tracked the desperate measures some families are having to take to feed their babies – it’s upsetting, stressful and ultimately unsafe for babies.

Experts have warned the high prices have put the nation on the brink of a “public health crisis” and earlier this month the World Health Organisation told Sky News that families were being “exploited” on pricing.

The CMA also highlights that the formula milk market is different to other food products – it is dominated by two multinational manufacturers – and that the public health messaging around it needs improvement for parents.

All the brands on the market meet minimum nutritional standards. Whether you buy the cheapest brand from Aldi for just under £10 or the most expensive at nearer £20.

The next stage of the CMA’s work will take months, but it appears determined to establish what needs to change. The calls for a price cap are only likely to increase.

A spokesperson for Danone UK & Ireland, the makers of the Cow & Gate and Aptamil brands, said it had minimised price increases and launched smaller, lower-priced pack sizes to help parents’ budgets.

“In Danone’s experience the formula milk market is competitive. We are committed to best practices to maintain this and will work constructively on ways we can continue to deliver value and innovation to parents. We will also continue to engage with the CMA over the coming months,” they said in a statement.

A Nestle spokesperson told Sky News: “Our goal has always been to keep products affordable and accessible for parents while still paying fair prices to our suppliers, including farmers.

“There have been significant increases in costs but we have been working to cut our costs wherever possible and only increase prices as a last resort.”

The CMA also declared that it was going to review supermarket loyalty schemes in the next phase of its investigation.

Front and centre of that is the offering of promotions only to customers who sign up to their loyalty cards.

The industry group for manufacturers responded to the CMA’s conclusions by suggesting that the pricing reflected value.

Karen Betts, chief executive of The Food and Drink Federation said: “Across our sector margins are at a 40-year low, insolvencies have doubled and investment has dropped by more than a third.

“Shoppers in the UK can take some comfort from the fact that, even with the levels of inflation we’ve seen in recent months, food and drink prices here remain lower than average EU grocery prices.

“The UK grocery market is highly competitive and offers a wide choice of products at a range of prices.

“Where branded products are more expensive than own-brand, this is because of the constant investment in quality and innovation that brand-owners make.

“If that investment doesn’t happen here in the UK, the amount of imported food and drink will certainly go up – with consequences for jobs, competitiveness and food security.”

But Sue Davies, head of food policy at Which?, said of the CMA’s findings: “Its evidence reinforces Which?’s concerns that shoppers relying on convenience store branches of the big supermarkets, which rarely stock the cheapest own-brand ranges, may struggle to find more affordable food.”

She added: “It’s positive that the CMA is set to review supermarket loyalty pricing as a recent Which? investigation found these deals aren’t always as they seem.

“In September we asked the regulator to look at whether supermarkets could be hiking ‘regular’ prices to make it appear that loyalty scheme customers are getting a better deal than they really are.”

The regulator issued its update after previously finding that higher prices in stores were not the result of weak competition between supermarket chains.

The watchdog did, however, demand tighter rules over so-called unit pricing – costs per item covering versions of the same product – to bolster price transparency.

It also previously found that supermarket fuel operators had charged motorists an extra £900m in 2022 by raising their margins on both petrol and diesel sales.

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Manhunt for Epping hotel asylum seeker, jailed for sexually assaulting girl, after accidental release

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Manhunt for Epping hotel asylum seeker, jailed for sexually assaulting girl, after accidental release

A manhunt has been launched for an accidentally released asylum seeker who was jailed for 12 months earlier this year after he sexually assaulted a 14-year-old girl and a woman in Epping.

Hadush Gerberslasie Kebatu had been staying at The Bell Hotel in the Essex town, with the incident fuelling weeks of protests at the site.

The Ethiopian national was found guilty of two counts of sexual assault, attempted sexual assault, inciting a girl to engage in sexual activity and harassment without violence earlier this month.

District judge Christopher Williams said Kebatu posed a “significant risk of reoffending” when he sentenced him to 12 months in prison in September.

Sky News understands Hadush Kebatu was being released from HMP Chelmsford as he was due to be immediately deported.

Hadush Gerberslasie Kebatu was jailed for two sexual assaults in Epping. Pic: Essex Police / PA
Image:
Hadush Gerberslasie Kebatu was jailed for two sexual assaults in Epping. Pic: Essex Police / PA

He was released on the expectation that he would be picked up by immigration enforcement, but it is currently unclear what happened next. It is understood that the Home Office was ready to take Kebatu to an immigration removal centre.

Sky sources say the search for Kebatu is within Essex, which launched a manhunt after he was accidentally freed on Friday morning.

Kebatu’s lawyer, Molly Dyas, told Chelmsford Magistrates’ Court during his trial that it was his “firm wish” to be deported.

Under the UK Borders Act 2007, a deportation order must be made where a foreign national has been convicted of an offence and received a custodial sentence of at least 12 months.

Kebatu was accidentally released from HMP Chelmsford. Pic: iStock
Image:
Kebatu was accidentally released from HMP Chelmsford. Pic: iStock

Deputy Prime Minister David Lammy is said to be furious and has ordered an investigation and is supporting police efforts, according to a Government source.

Mr Lammy said in a post on X that he is “appalled at the release in error”, adding: “Kebatu must be deported for his crimes, not on our streets.”

Reform UK leader Nigel Farage said: “The Epping hotel migrant sex attacker has been accidentally freed rather than deported. He is now walking the streets of Essex. Britain is broken.”

Tory leader Kemi Badenoch said Kebatu was released as a result of “the entire system collapsing under Labour”.

Chelmsford MP Marie Goldman said in a statement following the accidental release: “The police must do everything they can to ensure that this man is returned to custody immediately so that he is deported at once.

“Once the manhunt is over, there must be a full, rapid public inquiry into how this happened. This is utterly unacceptable and has potentially put my constituents in danger. I expect answers from the Prison Service.”

Hadush Gerberslasie Kebatu, left, in a court sketch. Pic: Elizabeth Cook/PA
Image:
Hadush Gerberslasie Kebatu, left, in a court sketch. Pic: Elizabeth Cook/PA

The Prison Service said in a statement that it was “urgently working with police to return an offender to custody following a release in error at HMP Chelmsford”.

“Public protection is our top priority and we have launched an investigation into this incident,” a spokesperson added.

It is understood that releases in error are incredibly rare and are taken extremely seriously by the Prison Service.

But policing and crime commentator Danny Shadow says that releases in error are actually not uncommon.

“Last year, there were 87 prisoners who were released in error. So that’s around six or so every single month. Seventy were released from error from prisons and another 17 from the courts,” the former Labour home affairs advisor told Sky News.

An officer has been removed from duties to discharge prisoners while the investigation is ongoing.

Kebatu was staying at the Bell Hotel in Epping. Pic: PA
Image:
Kebatu was staying at the Bell Hotel in Epping. Pic: PA

During his trial, the court heard that Kebatu had tried to kiss the teenager, put his hand on her thigh and brushed her hair after she offered him pizza.

The asylum seeker also told the girl and her friend he wanted to have a baby with them and invited them back to the hotel.

The incident happened on 7 July, about a week after he arrived in the UK on a boat.

The girl later told police she “froze” and got “really creeped out”, telling him: “No, I’m 14.”

The Bell Hotel has been the site of protests over the summer. Pic: AP
Image:
The Bell Hotel has been the site of protests over the summer. Pic: AP

Kebatu was also found guilty of sexually assaulting a woman – putting his hand on her thigh and trying to kiss her – when she tried to intervene after seeing him talking to the girl again the following day.

The incidents sparked anti-migrant protests and counter-protests outside the former Bell Hotel in Epping – as well as at hotels housing asylum seekers across the country.

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Asylum seeker found guilty of hotel worker’s murder

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Asylum seeker found guilty of hotel worker's murder

An asylum seeker has been found guilty of murdering a hotel worker at a train station in the West Midlands.

Deng Chol Majek was caught on CCTV following Rhiannon Skye Whyte from the Park Inn hotel, in Walsall, where he lived and she worked, to the nearby Bescot Stadium station.

She was stabbed in the head with a screwdriver 19 times, and 23 times in total, on 20 October last year.

Deng Chol Majek. Pic: PA
Image:
Deng Chol Majek. Pic: PA

Mr Majek, who is from Sudan and claims to be 19 years old, had told Wolverhampton Crown Court he was at the hotel for asylum seekers at the time the 27-year-old was attacked.

A two-week trial heard that Mr Majek had previously been reported to security at the hotel after “spookily” staring at three female staff members for prolonged periods.

Ms Skye died in hospital three days after the attack, having been found injured in a shelter on the platform by the driver and guard of a train which pulled in about five minutes later.

Rhiannon Skye Whyte. Pic: Family handout/PA
Image:
Rhiannon Skye Whyte. Pic: Family handout/PA

Mr Majek, who is about ten inches taller than Ms Whyte, walked to the Caldmore Green area of Walsall after the attack to buy beer, and was recorded on CCTV apparently wiping blood from his trousers.

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He returned to the hotel at 12.13am, changed his bloodstained flip-flops for trainers, and was seen dancing with other residents in the car park, within sight of emergency vehicles called to the station.

Asked by defence KC Gurdeep Garcha if he was at the train station when Ms Whyte was stabbed, Mr Majek replied: “No.”

He also denied being “responsible for that fatal assault” on the platform.

CCTV from the reception area of the hotel alleged to show Deng Chol Majek staring at Rhiannon Whyte, left. Pic: PA
Image:
CCTV from the reception area of the hotel alleged to show Deng Chol Majek staring at Rhiannon Whyte, left. Pic: PA

Prosecutor Michelle Heeley KC said of Mr Majek’s behaviour after the murder: “He is celebrating, his mood has changed from that prolonged scowl before the murder to dancing and joy after the murder. It is utterly callous.”

Mr Majek said he had spent time in Libya, Italy and Germany before arriving in the UK to claim asylum in July last year.

He will be sentenced at a later date.

‘She was always happy’

Rhiannon’s sister, Alex Whyte, said her sibling “always wanted to make everyone else around her happy”.

She said: “Rhiannon had such a quirky personality. You would hear her before you’d see her.

“No matter what her day had been, she always wanted to make everyone else around her happy. She always prioritised family. That was the most important thing to Rhiannon. Obviously, she has a brother and three sisters. And my mum, who was her best friend.”

She added: “Rhiannon is the second youngest. But our baby sister would always say ‘I’m your big little sister’, because Rhiannon was very soft.

“So, no matter what, we always wanted to protect her. That was our priority most of our life, because Rhiannon never saw danger – Rhiannon never understood how scary the world really could be.

“But no matter what Rhiannon was just happy, always.”

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Labour dealt historic loss in Caerphilly by-election – as Plaid Cymru win seat

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Labour dealt historic loss in Caerphilly by-election - as Plaid Cymru win seat

Plaid Cymru have won the by-election in the Senedd seat of Caerphilly for the first time.

The Welsh nationalist party secured 15,960 votes – and candidate Lindsay Whittle cried as the result was announced.

Mr Whittle is 72 years old and had stood as a Plaid candidate 13 times since 1983. He will now hold the seat until the Welsh Assembly’s national elections next year.

This by-election was widely regarded as a two-horse race between Plaid Cymru and Reform UK, and the result marks a considerable blow for Nigel Farage.

His candidate Llyr Powell received 12,113 votes – denying a victory that would have strengthened claims that Reform can convert a large lead in opinion polls into election wins.

Nonetheless, the party’s performance is a marked improvement on 2021, when it received just 495 votes.

More than anything, the result is a humiliating and historic defeat for Labour, who had held Caerphilly at every Senedd election since it was created in 1999 – as well as the Westminster seat for over a century.

Its candidate Richard Tunnicliffe secured 3,713 votes and finished in third place, with Welsh Labour describing it as a “by-election in the toughest of circumstances, and in the midst of difficult headwinds nationally”.

Turnout overall stood at 50.43% – considerably higher than during the last ballot back in 2021.

Giving his acceptance speech after the result was confirmed, Mr Whittle began by paying tribute to Hefin David – who was Welsh Labour’s Member of the Senedd for Caerphilly until his death in August.

“He will be a hard act to follow,” Mr Whittle said. “I will never fill his shoes – but I promise you, I will walk the same path that he did.”

The Plaid politician described how he had been “absolutely heartened” by how many young people were involved in the by-election – and said the result sends a clear message.

He said: “Listen now Cardiff and listen Westminster – this is Caerphilly and Wales telling you we want a better deal for every corner of Wales. The big parties need to sit up and take notice.

“Wales, we are at the dawn of new leadership, we are at the dawn of a new beginning – and I look forward to playing my part for a new Wales, and in particular, for the people of the Caerphilly constituency. I thank you with all my heart.”

Mr Whittle quipped Plaid’s victory “was better than scoring the winning try for Wales in the Rugby World Cup”.

And looking ahead to the next year’s elections, he added: “[This] result shows what’s possible when people come together to back practical solutions and protect what matters most.

“We’ve beaten billionaire-backed Reform and, with the same determination, we can do it again in May 2026. Caerphilly has shown the way – now Wales must follow.”

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How tactical voting helped Plaid Cymru

Speaking to Sky’s chief political correspondent Jon Craig just before the declaration, Plaid Cymru leader Rhun ap Iorwerth said: “There’s clearly a real significance to the result – we are seeing the disillusionment with Labour writ large. I’ve heard it on hundreds of doorsteps, we’ve seen it in opinion polls.”

He conceded there was tactical voting in this by-election – with Labour and Conservative supporters alike backing Lindsay Whittle to keep out Reform.

However, Mr ap Iorwerth added: “I’ve spoken to literally hundreds and hundreds of people who told me – time and time again – ‘I’ve been a Labour supporter all my life, and we’re backing you this time.’

“Not begrudgingly, but because they see that’s the direction we’re going in – not just in this by-election, but as a nation. I’m calling on people to get behind that positive change – not just today, but ahead of next May.”

First Minister Eluned Morgan congratulated Mr Whittle on his return to the Senedd and said: “Welsh Labour has heard the frustration on doorsteps in Caerphilly that the need to feel change in people’s lives has not been quick enough.

“We take our share of the responsibility for this result. We are listening, we are learning the lessons, and we will be come back stronger.”

The Conservatives and the Liberal Democrats were among the parties who lost their deposits.

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