Soft Drinks Levy extended to include milk-based drinks 

The Soft Drinks Levy currently applied to many fizzy drinks is being extended to cover pre-packaged sugary milk-based drinks.

The government is lowering the sugar threshold from 5g to 4.5g per 100ml, which means more high sugar drinks will fall under the levy unless manufacturers reduce sugar levels, with businesses given until 1st January 2028 to do so.

The charge, known as the “sugar tax”, will apply to drinks with added sugar like supermarket milkshakes, flavoured milks, sweetened yoghurt drinks, chocolate milk drinks and ready-to-drink coffees. Drinks made in-house by cafes, coffee shops and takeaways will not be included nor will plain, unsweetened milk and milk-alternative drinks. 

The move is a bid to reduce obesity, with the government claiming many of these products can contain as much added sugar as fizzy drinks, where much of that sugar is added separately to the milk. It says the levy so far has seen the average sugar content of drinks in scope fall almost 50% since it was introduced in 2018.

At the same time it says businesses have consistently experienced increased sales of drinks. According to comprehensive Department of Health and Social Care data, these products recorded a 13.5% rise in volume sales (litres) between 2015 and 2024, demonstrating strong consumer acceptance and the commercial viability of healthier reformulated beverages.

Health and social care secretary Wes Streeting said: “An unhealthy start to life holds kids back from day one, especially those from poor backgrounds like mine. We’re on a mission to raise the healthiest generation of children ever, and that means taking on the biggest drivers of poor health.

“The levy has already shown that when industry cuts sugar levels, children’s health improves. So, we’re going further.”