The UK government has announced that the Soft Drinks Industry Levy will be expanded to include sugary milk-based drinks such as milkshakes, flavoured milks, sweetened yoghurt drinks, and ready-to-drink coffees. These products were previously exempt from the levy.
In addition to including more drink categories, the government is lowering the sugar threshold for the levy from 5g of sugar per 100ml to 4.5g per 100ml. This change means a wider range of high-sugar drinks will now be subject to the levy.
Many of these milk-based drinks contain high levels of added sugar and are often marketed as healthy options, even when they have more sugar than a can of cola. The inclusion in the levy aims to encourage manufacturers to reduce sugar content and help families make healthier choices for their dental health.
Dr Nigel Carter OBE, Chief Executive of the Oral Health Foundation, said: “We strongly welcome the decision to close the milkshake loophole in the Soft Drinks Industry Levy. For too long, sugary milk-based drinks have been marketed as a ‘healthier’ alternative to fizzy drinks, despite many containing more sugar than a can of cola. Bringing them into the levy is an important step for protecting the nation’s oral health – especially the teeth of our children.”
“Tooth decay remains the number one reason young children in the UK are admitted to hospital. High-sugar drinks are a major driver of this problem. When children sip sugary milkshakes, flavoured milks or sweetened coffee drinks – often between meals – it creates the perfect conditions for tooth decay. Extending the levy helps tackle one of the biggest hidden sources of added sugar in children’s diets.”
“We have already seen the success of the current levy in soft drinks. It encouraged companies to significantly cut sugar without harming business growth. Applying the same approach to high-sugar milk-based drinks will once again encourage companies to reformulate and reduce sugar, making the healthier option the easier option. This move is not about stopping children from enjoying treats – it is about stopping everyday drinks from quietly damaging their teeth.”
“The new lower sugar threshold gives manufacturers a clear target to aim for and sends a strong message that oral health must be taken seriously across the whole drinks industry. We now urge the government to ensure that revenue from the levy is invested back into children’s health – including programmes that support good oral health and access to dental care.”
“The levy works. It improves health without limiting choice. Today’s announcement will protect many more young mouths from needless pain, toothache and dental treatment in years to come.”
The updated rules are scheduled to take effect in January 2028.
Despite supporting these changes, Oral Health Foundation expressed concern that some measures do not go far enough because beverages sold at café-style venues and on high streets remain exempt from this expansion—even though many iced coffees and premium milk-based products sold there contain very high levels of added sugars above 8g per 100ml.
The foundation argues that extending coverage further would create consistency across all retail settings and could prompt additional product reformulation by manufacturers while helping consumers make healthier choices regardless of where they shop.
