UK extends sugar tax to packaged milkshakes

New policy expands SDIL to milk-based drinks as health experts warn of rising dental decay from sugary beverages

UK sugar tax extension to packaged milkshakes and flavoured milk aimed at reducing sugar intake and dental decay risks.
Caption: The UK has expanded its sugar tax to include packaged milkshakes and flavoured milk drinks to reduce hidden sugar consumption and support better oral health. (Image courtesy of BBC News)

Sugar tax extension to milkshakes, lattes aims to curb sugar consumption, improve oral and overall health

The UK government is set to outline its Autumn Budget today, and ahead of the announcement, the health secretary Wes Streeting has confirmed a major expansion of the Soft Drinks Industry Levy (SDIL), widely known as the sugar tax. The updated sugar tax will now cover packaged milkshakes, flavoured milk drinks, plant-based milk alternatives, and some packaged coffees — a move that public-health and oral-health experts say could significantly cut sugar consumption and help reduce rising dental decay rates.

Why the sugar tax now includes milk-based drinks

The Soft Drinks Industry Levy, introduced in 2018, was originally applied only to fizzy and soft drinks, exempting milk-based beverages. However, the government’s Strengthening the Soft Drinks Industry Levy (SDIL) consultation, conducted from 28 April to 21 July 2025, found strong justification for expanding the tax to reduce hidden sugars in drinks commonly consumed by children and teenagers.

Under the new rules, bottled and packaged milkshakes, flavoured milk, and dairy-alternative drinks will fall under the SDIL starting 1 January 2028. Drinks prepared fresh in cafés, bars, or restaurants will remain exempt.

In addition, the sugar threshold for taxation will be lowered from 5g to 4.5g per 100ml, encouraging manufacturers to further reduce sugar content.

The UK Treasury estimates the expanded levy could generate £40–£45 million per year.

Oral health implications: a long overdue correction

Dental experts have long warned that milkshakes and flavoured milk drinks contain “shockingly high” levels of free sugars, often exceeding those found in some soft drinks.

High sugar intake is directly linked with:

  • enamel erosion
  • early childhood caries
  • higher risk of cavities in adolescents
  • increased lifetime dental treatment costs

The original sugar tax led to a 46% reduction in sugar levels across taxed soft drinks, with almost 90% of products reformulated below taxable levels — demonstrating the levy’s effectiveness.

A 2023 study found that the SDIL may have prevented around 5,000 cases of obesity per year in year-six girls alone. Oral-health researchers expect similar benefits once milk-based drinks — a major hidden sugar source — are included.

What this means for consumers, oral health professionals

From an oral-health standpoint, the expansion of the sugar tax may:

  • reduce tooth decay by lowering sugar exposure in children
  • encourage manufacturers to reformulate milk-based beverages
  • shift consumer behaviour toward lower-sugar options
  • support preventive dentistry goals across the UK

For dental practitioners, this policy provides fresh opportunities to reinforce sugar-reduction advice during routine checkups, pediatric consults, and public-health education campaigns.

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