Milk-based drinks like lattes and milkshakes could fall under the UK’s sugar levy from 2028, widening the government’s battle against sugar beyond fizzy drinks. Health Secretary Wes Streeting told Parliament that the threshold at which the levy applies will drop from 5g to 4.5g per 100ml, a move aimed at tackling childhood obesity and reducing pressure on the NHS. The government argues this will push manufacturers to reformulate and slim portions, potentially changing what you pour into your cup each morning.
The levy, originally introduced in 2018, has been credited with driving a 46% reduction in sugar in fizzy drinks as manufacturers reformulated recipes. Now, milk-based drinks—including familiar brands like Yazoo and Muller’s Frijj, as well as café favourites such as Starbucks Caffe Latte—could face the same financial incentive to cut sugar. Drinks that use plant-based milks (soya, oat, almond) will also be brought into scope and treated similarly from 2028.
The policy continues to exempt fruit juices, alcohol-free beer and wine, and meal replacements, while dairy drinks will be adjusted via a lactose allowance to account for naturally occurring sugars in milk. That means some sweetness in dairy beverages will not count toward the levy, addressing the dairy sector’s concern about unique nutrient profiles. Dairy UK’s Judith Bryans welcomed the lactose allowance but called the extension ‘disappointing’ for dairy’s nutrients, even as the industry accepts the need to avoid unfairly taxing natural lactose.
Crucially, the new rules apply to packaged products in cans and cartons, not to drinks sold over-the-counter in cafes. If manufacturers absorb the tax or reformulate sugar levels, prices at the shelf may not rise immediately. The government argues reformulation and smaller portions are likely to shift consumer behavior and reduce obesity-related health burdens, echoing its broader public health goals.
