The Government has announced that the Soft Drinks Industry Levy is being updated to include sugary milk-based drinks - such as milkshakes, flavoured milks, sweetened yoghurt drinks and ready-to-drink coffees - which were previously exempt.

The update also lowers the entry point for the levy from 5g of sugar per 100ml to 4.5g of sugar per 100ml, meaning more high-sugar drinks will now fall within scope.

Many of these drinks contain extremely high amounts of added sugar and can be marketed as “healthy”, even when they include more sugar than a can of cola. Bringing them into the levy is designed to encourage companies to reduce sugar and make it easier for families to choose drinks that do not harm their teeth.

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 new rules will come into force in January 2028.

While the Oral Health Foundation welcomes the new extension to the levy, the charity remains concerned that the measures do not go far enough. Drinks sold in café-style settings and on the high street are still exempt, despite many iced coffees and premium milk-based drinks containing extremely high levels of added sugar - in some cases upwards of 8 g of sugar per 100 ml, well above the new levy threshold. These products are often purchased as everyday drinks rather than occasional treats, and can easily contribute to tooth decay when consumed regularly.

The Oral Health Foundation believes that the levy should be widened so that all high-sugar drinks are treated consistently, regardless of where they are bought. Extending the rules to cover coffee shop and takeaway drinks would encourage further reformulation and help families make healthier choices wherever they shop.