The government has announced a major expansion of the Soft Drinks Industry Levy (SDIL), closing long-standing loopholes and bringing a wider range of high-sugar drinks—particularly milk-based and milk-alternative beverages—into scope. The move aims to reduce sugar consumption, improve child health, and ease pressure on the NHS.
From 1 January 2028, pre-packaged flavoured milks, sweetened yoghurt drinks, chocolate milk drinks, ready-to-drink coffees, and similar products with added sugar will face the levy unless manufacturers cut sugar levels. Plain, unsweetened milk and milk-alternative drinks will remain exempt.
This policy is expected to remove around 17 million calories a day from the nation’s diet and generate £1 billion in health and economic benefits. Officials estimate it could prevent nearly 14,000 adult obesity cases and almost 1,000 childhood cases, while reducing risks of cancer, heart disease and stroke.
Tackling obesity and improving children’s health
Obesity remains one of the UK’s most significant public health challenges, linked to type 2 diabetes, heart disease and several cancers. The UK has the third-highest rate of adult obesity in Europe, costing the NHS £11.4 billion annually—three times the ambulance services budget.
Health and Social Care Secretary Wes Streeting emphasised the urgency of action:
“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. The levy has already shown that when industry cuts sugar levels, children’s health improves. So, we’re going further.”
The sugar threshold for the levy will be lowered from 5g to 4.5g per 100ml, bringing more products into the lower or higher levy bands. Businesses have over two years to reformulate. The SDIL taxes manufacturers and importers directly, a model that has already prompted major reductions in the sugar content of fizzy drinks—nearly 50% between 2015 and 2024.
Evidence of health impact
Since its introduction, the levy has contributed to sharp declines in sugar consumption and measurable improvements in child oral health. Hospital admissions for tooth extractions caused by dental decay have fallen by over 28% among 0–4-year-olds and more than 5% among 5–9-year-olds.
Consumption trends also show that reformulated drinks remain commercially successful. Between 2015 and 2024, volume sales of drinks affected by the levy rose 13.5%, demonstrating strong consumer acceptance of lower-sugar products.
Extending the levy is expected to reduce daily calorie intake by 4 million in children and 13 million in adults across England. Additional projected benefits include £36 million in NHS savings, £30 million less social care pressure, and £221 million in economic output linked to better workforce health.
England’s Chief Medical Officer, Professor Sir Chris Whitty, welcomed the move:
“The existing levy has already substantially reduced sugar in shop-bought products… Extending the sugar levy is likely to have further benefit for child health.”
Support from health and children’s organisations
A wide range of health experts and advocacy groups have endorsed the change. The Obesity Health Alliance described it as “a long-overdue step” that will protect children’s teeth and help deliver the government’s 10-Year Health Plan. The British Dental Association noted the policy’s success in pushing industry to remove “tens of thousands of tonnes of sugar” since 2018 and urged continued momentum.
Diabetes UK highlighted the benefits for tackling rising type 2 diabetes rates, particularly among younger people. Cancer Research UK called the expansion “a welcome step forward” that will support healthier choices and reduce cancer risk. Youth campaigners, including Bite Back, praised the inclusion of milkshakes—long targeted at young consumers—as a meaningful victory.
Children’s charities also backed the reform. Barnardo’s Chief Executive Lynn Perry emphasised the need to address excessive sugar intake and improve access to nutritious food for families in poverty.
Part of a wider strategy
The levy extension sits within a broader package of government measures to reduce obesity and improve health outcomes. These include the Healthy Food Standard for everyday groceries, a ban on junk food advertising before 9pm, restrictions on selling high-caffeine energy drinks to under-16s, and new powers for councils to prevent fast-food outlets opening near schools.
