The Government has announced significant changes to the Soft Drinks Industry Levy (SDIL), extending the levy to cover sugary milk-based and milk-alternative drinks and lowering the sugar threshold from 5g to 4.5g per 100ml. These measures aim to drive further reformulation to reduce free sugars in products commonly consumed by children and families.
Under the new rules, the levy will apply to pre-packaged drinks with added sugar such as supermarket milkshakes, flavoured milks, sweetened yoghurt drinks, chocolate milk drinks, and ready-to-drink coffees. Plain, unsweetened milk and milk alternatives remain exempt. Companies will have until January 2028 to reformulate or face the charge.
Government modelling indicates that these changes could remove 17 million calories from the nation’s diet each day, with expected long-term health and economic benefits of £1 billion, including reduced NHS pressures and improved workforce participation. The SDIL has already led to a near 50% reduction in the average sugar content of drinks within its scope since 2015, demonstrating that clear standards can drive significant industry-wide reformulation.
Obesity and child health impact
Obesity remains one of the leading contributors to chronic health conditions such as type 2 diabetes, heart disease, and cancer. With the UK now among the highest rates of adult obesity in Europe, costing the NHS an estimated £11.4 billion per year, policies that reduce exposure to excess sugars play a critical role in prevention.
High sugar intake in childhood is associated with dental decay, obesity, and increased risk of long-term health conditions. Since the SDIL was introduced, reductions in sugar content have been linked to substantial decreases in dental hospital admissions in young children, including a 28% fall in caries-related tooth extractions among 0–4-year-olds.
Government projections suggest that the strengthened levy could prevent 14,000 cases of adult obesity and nearly 1,000 cases of childhood obesity, with daily calorie reductions of 4 million in children and 13 million in adults.
ASO response
Professor Nicola Heslehurst, President of the Association for the Study of Obesity (ASO), said:
“Today’s announcement builds on clear evidence that the Soft Drinks Industry Levy has reduced sugar levels in drinks through reformulation, helping to lower children’s sugar exposure and reduce obesity risk. Bringing sugary milk-based drinks into scope and updating the threshold in line with the Nutrient Profiling Model strengthens a coherent, evidence-based approach to reducing free sugars.
Reformulation is one of the most effective tools for tackling the dietary drivers of obesity. While this is a positive step, further progress will require continued action across the wider food environment to support healthier choices for children and families.”
Wider obesity measures
The levy extension is part of a broader package of planned government actions to improve population health, including:
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introducing the Healthy Food Standard
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restricting advertising of foods high in fat, sugar and salt before the 9pm watershed
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banning the sale of energy drinks to under-16s
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giving local authorities greater powers to prevent new fast-food outlets opening near schools
ASO welcomes policies that support healthier population diets and reduce exposure to excess free sugars, particularly among children. We remain committed to ensuring obesity policy is informed by robust evidence and centred on improving long-term health outcomes.
