Alcohol Pricing In England: What's The Minimum?

There is currently no minimum unit price for alcohol in England, despite growing pressure on the government to introduce one. In 2024, Lord Darzi's investigation into the NHS highlighted the alarming death toll in England caused by cheap drink, with deaths rising by 10% a year. Scotland introduced a minimum unit price in 2018, with Wales following in 2020, and both have seen positive results, with a reduction in alcohol-related deaths. England has seen a similar rise in alcohol-related deaths, with a two-litre bottle of cider purchasable for under £2. With the success of minimum unit pricing in Scotland and Wales, England is facing increasing calls to implement a similar policy.

The impact of minimum pricing on public health

As of 2024, there is no minimum price for alcohol in England. However, there have been growing calls for the introduction of a minimum unit price (MUP) for alcohol in England, particularly after the release of Lord Darzi's investigation into the NHS, which highlighted the "alarming" death toll in England caused by cheap drink.

The impact of MUP on public health is twofold. Firstly, it reduces the availability and sale of cheap, high-strength alcohol. Retailers reported that their customers were buying less of these products, and in some cases, they stopped selling them altogether. This leads to the second impact, which is a reduction in alcohol consumption, particularly among heavy drinkers who experience the most harm. This, in turn, can lead to reduced alcohol-related deaths and improved public health outcomes.

However, the effectiveness of MUP can be influenced by factors such as inflation. During a period of unusually high inflation in 2023-24, the positive effects of the 50p MUP in Scotland were outstripped by higher prices. As a result, the Scottish Government increased the MUP to 65p in 2024.

While there is strong evidence to support the implementation of MUP to reduce alcohol-related harm, it is important to consider the potential impact on those with alcohol dependence. Some studies suggest that harmful drinkers may be largely unresponsive to MUP price changes and may instead increase their weekly spend on alcohol, cutting back on other necessities. Therefore, it is crucial to implement MUP in conjunction with other measures to support and treat alcohol dependence effectively.

The impact of minimum pricing on the alcohol industry

While England has not introduced minimum unit pricing (MUP) for alcohol, Scotland and Wales have. In Scotland, a minimum unit price of 50p was set in 2018, which was increased to 65p in 2024. Wales introduced MUP in March 2020, with a minimum price of 50p per unit.

The alcohol industry has responded to MUP by lowering the ABV of certain products and making smaller container sizes more readily available. For example, the move to a 50cl spirit bottle allows it to be sold for under £10, a more attractive price point than £13.13 for a 70cl bottle.

Retailers have reported that customers are buying less cheap, high-strength alcohol, and in some cases, they have stopped selling these products altogether. There has also been a statistically significant impact of MUP on the number of alcohol units purchased by households in Wales compared to England.

MUP has been shown to reduce the availability and sale of cheap, high-strength alcohol. The biggest changes have been seen in the strongest, cheapest products, like white cider, previously sold for as little as 20p per unit.

There is a widespread belief that much of the alcohol that contributes to social problems is irresponsibly priced and sold. MUP aims to reduce excessive alcohol consumption and associated harm by increasing the price of alcohol relative to people's spending power. This logic suggests that as the price of alcohol increases, consumption decreases, particularly among heavier drinkers who tend to choose cheaper drinks.

However, critics of MUP argue that it could unfairly punish those who drink responsibly, especially those on low incomes, while doing little to help those with serious drink problems. Additionally, MUP could generate a windfall for the alcohol industry, whereas higher taxes could have a similar impact on problem drinking while raising government revenue.

The impact of minimum pricing on consumer behaviour

As of 2024, England has not introduced a minimum unit price (MUP) for alcohol, despite growing pressure from health and public health leaders to do so. In contrast, Scotland, Wales, and the Republic of Ireland have implemented MUP policies with some success.

The Sheffield Alcohol Policy Model (SAPM), developed by the Sheffield Addictions Research Group (SARG), has informed policy processes in Scotland, Wales, and the Republic of Ireland. The model consistently finds that MUP policies effectively reduce alcohol-related harm without increasing the price of alcohol for moderate drinkers, even those on low incomes. This suggests that MUP can successfully target heavy drinkers without penalising those who drink responsibly.

However, critics of minimum pricing argue that it may unfairly impact responsible drinkers, especially those with low incomes. They suggest that problem drinkers may simply cut back on other purchases to maintain their alcohol consumption. Additionally, the alcohol industry may benefit from increased profits, while higher taxes could be a more effective alternative to reduce problem drinking and raise government revenue.

While there is evidence that MUP policies can reduce the availability and sale of cheap, high-strength alcohol, the impact on consumer behaviour is complex and influenced by various factors. These include spending power, income, inflation, and the cost of living. Overall, minimum pricing appears to have a greater impact on heavy drinkers, but it is important to consider the potential unintended consequences for responsible drinkers and the need for comprehensive solutions to address problem drinking.

The impact of minimum pricing on government revenue

Despite growing evidence of the effectiveness of minimum unit pricing (MUP) policies in Scotland and Wales, England has not introduced such a policy. Public health leaders are urging the government to implement a minimum unit price for alcohol to address the "alarming" death toll caused by cheap drink.

In 2018, Scotland became the first country in the world to introduce a MUP for alcohol, setting a minimum price of 50 pence (around US$0.64 or €0.59) per unit of alcohol sold (8g/10ml). This policy aimed to reduce the availability and sale of cheap, high-strength alcohol, particularly targeting younger and heavier drinkers who tend to seek out the cheapest forms of alcohol. Wales followed suit in March 2020, implementing a similar MUP policy.

The impact of MUP policies on government revenue is complex. On the one hand, a MUP can lead to a net increase in revenue for the government, as seen in Scotland, where a 50-pence minimum unit price was estimated to result in a net increase of £34 million per annum, with £41 million in increased revenue to the off-trade. This increase in revenue is a result of reduced sales volumes but at higher prices. However, the impact on retailers needs to be considered, as they may experience a reduction in sales volume, especially if consumers cross-border shop in areas with lower alcohol prices. Additionally, retailers may need to adjust their pricing strategies for other goods that previously cross-subsidized low alcohol prices.

While the Scottish and Welsh experiences provide valuable insights, the specific impact on government revenue in England may vary due to differences in market conditions, consumer behaviors, and other factors. Implementing a MUP in England could potentially lead to a similar net increase in revenue, contributing to a reduction in alcohol-related harms and associated societal costs, which were estimated at £27.4 billion in England. However, it is essential to carefully evaluate the potential impact on retailers and consumers to ensure that any policy changes are effective and balanced.

In conclusion, while the introduction of a minimum unit price for alcohol in England is currently under consideration, the potential impact on government revenue remains uncertain. The experiences of Scotland and Wales suggest that a MUP can lead to increased revenue, but the specific effects will depend on various factors unique to England's market and consumer landscape. Further analysis and consideration are necessary to fully understand the potential revenue implications of implementing a MUP policy in England.

The impact of minimum pricing on crime and public order

Despite growing evidence of its effectiveness in Scotland and Wales, minimum unit pricing (MUP) for alcohol has not been introduced in England. In 2024, health leaders urged the English government to follow Scotland and Wales in implementing MUP to curb the rising death toll from cheap alcohol.

However, minimum pricing has been shown to reduce the consumption of cheap alcohol, particularly among harmful drinkers. A report in the Lancet found that minimum unit pricing in Scotland was associated with an overall reduction in alcohol-related deaths. Additionally, the National Centre for Social Research found that retailers stocked less cheap, high-strength alcohol or stopped selling them altogether following the introduction of MUP.

Overall, while minimum pricing may not have a significant direct impact on crime and public order, it can contribute to improved public health and safety by reducing harmful alcohol consumption. Increased alcohol prices have been linked to reduced rates of alcohol abuse, which can have positive flow-on effects on social peace and crime reduction.

Frequently asked questions