Schools in England will be allowed to offer flavoured milk drinks to pupils after a climbdown by the School Food Trust.

The Trust initially insisted that only drinks containing milk and fruit juice were allowed in schools, but has changed its mind at the eleventh hour after furious lobbying by the dairy industry.

It has now agreed that drinks containing a minimum 90% milk, up to 5% sugar and 5% flavourings and colourings are permitted under new government legislation that comes into force on 10 September.

Schools have already been advised of the change in a letter from Judy Hargadon, chief executive of the Trust. She claimed the new guidelines amounted to nothing more than a technical change. "It has proved very difficult, at this stage, for manufacturers to produce combined milk and fruit juice combination drinks," she said in a letter to stakeholders.

"Therefore, to ensure that there are sufficient milk drinks available to provide children with the calcium they need, the final school food regulations will allow flavoured milk drinks."

The Trust's new guidelines also allow fermented milk drinks instead of just yoghurt drinks, potentially broadening the category. And in good news for Arla, which makes Lactofree, the guidelines specifically permit lactose-reduced milk in addition to soya, oat and rice-based drinks.

Dairy UK said the changes would allow most dairy companies to market their milk and yoghurt drinks to schoolchildren. "We're pleased with the outcome," said technical director Ed Komorowski. "I would expect this to increase dairy companies' efforts to create a product for schools. I know several are already planning to launch products."

The previously published guidelines will not be reissued with the updated dairy information, the Trust said. It insisted most of the document remained valid. The full guidance, including which flavours and colours are allowed in milk drinks, is available online at www.schoolfoodtrust.org.uk