Alcohol Pricing: Minimum Unit Costs And Their Impact

Alcohol minimum pricing policies are used in several countries and territories, including Scotland, Wales, Canada, and Ireland. These policies set a baseline price per unit of alcohol, such as a minimum of 50p or 65p per unit in Scotland and Wales, respectively. The aim of these policies is to reduce alcohol-related harm by making alcohol less affordable, particularly for excessive and harmful drinkers who are more likely to purchase cheap, high-strength alcohol. Research suggests that minimum unit pricing has helped reduce alcohol-related deaths, hospital admissions, and overall alcohol consumption. However, critics argue that it may disproportionately impact low-income individuals and that its effectiveness can be challenged by factors such as inflation.

Minimum unit pricing reduces alcohol-related harm by making alcohol less affordable

Minimum unit pricing (MUP) is a policy that sets a baseline price per standard unit of alcohol, such as the amount of alcohol in a litre of beer or a litre of liquor. The aim of MUP is to reduce alcohol-related harm by making alcohol less affordable, particularly for harmful drinkers who are most likely to buy a lot of very cheap, high-strength alcohol.

MUP has been implemented in various places around the world, including Scotland, Wales, parts of Canada, and some US states. In these places, research has shown that MUP has been effective in reducing alcohol-related harm. For example, in Scotland, MUP was introduced in 2018, with a minimum price of 50p per unit of alcohol. This was subsequently increased to 65p per unit in 2024. Public Health Scotland's evaluation of MUP found that it reduced alcohol-specific deaths by 13.4% and averted over 800 hospital admissions every year. MUP also had the greatest impact on those living in the 40% most deprived areas of Scotland, helping to reduce health inequalities.

Similarly, in Wales, where MUP was introduced in 2020 with a minimum price of 50p per unit, there was a statistically significant impact on the number of alcohol units purchased by households compared to England. Retailers in Wales reported that customers were buying less cheap, high-strength alcohol, and in some cases, they stopped selling these products altogether.

MUP is generally well-adapted by retailers, and it does not impact the price of alcohol in pubs, clubs, or restaurants, as drinks sold in these establishments typically cost more than the minimum unit price. It is also not a tax and does not generate income for the government. Instead, it is a targeted measure to reduce the availability and sale of cheap, high-strength alcohol, which is often consumed by children and vulnerable people due to its affordability.

While MUP has been successful in reducing alcohol-related harm, it is important to regularly review the minimum unit price to account for changes in the affordability of alcohol, such as during periods of high inflation. Additionally, MUP should be implemented alongside other interventions, such as comprehensive education and awareness programmes, to further reduce alcohol-related harm.

Minimum pricing policies are more common outside of the US

Minimum pricing policies for alcohol are more common outside of the US. While some individual US states, such as Oregon, have started to implement minimum pricing policies, they are not common across the country. In contrast, several other countries have adopted such policies, recognising their effectiveness in reducing alcohol-related harm.

Scotland was the first country to introduce a Minimum Unit Price (MUP) for alcohol in 2018, setting a minimum price of 50p per unit. This was followed by Wales in March 2020, which implemented the same minimum price per unit. In April 2024, Scotland increased its minimum unit price to 65p, with Wales remaining at 50p. Early reporting indicates that MUP has been effective in Scotland, with average weekly alcohol purchases reduced by 9.5g per adult per household. Similarly, in Wales, there was a statistically significant impact on the number of alcohol units purchased by households compared to England.

Ireland has also implemented minimum unit pricing, with a minimum price of €1 per standard drink (10g of alcohol). This has resulted in a minimum price of €1.66 for a 500ml can of 4.2% stout and €8.28 for a 14% bottle of wine.

Outside of Europe, Canada has also implemented minimum pricing policies for alcohol. In British Columbia, for example, the minimum price per litre in 2016 was $3.19 for packaged beer, $6.44 for wine, and $27.88 for spirits.

These policies aim to reduce alcohol-related harm by making alcohol less affordable, particularly for excessive and harmful drinkers, who are more likely to purchase cheap alcohol. Research has shown that increasing the price of alcohol leads to reduced consumption and a subsequent decrease in alcohol-related illnesses, injuries, and deaths.

Minimum unit pricing impacts heavy drinkers more than moderate drinkers

Minimum unit pricing (MUP) is a policy that sets a price threshold below which alcohol cannot be sold per unit. The aim of this policy is to reduce alcohol-related harm by making alcohol less affordable. Since heavy drinkers typically pay less per unit of alcohol and buy more units, they are more affected by minimum unit pricing than moderate drinkers.

Research has shown that MUP is effective in reducing the availability and sale of cheap, high-strength alcohol. Retailers have reported that their customers are buying less of these products, and in some cases, they have stopped selling them altogether. Studies have also shown that MUP leads to a reduction in alcohol-related deaths and hospital admissions, particularly in more deprived groups. For example, evaluation evidence from Scotland shows that since the introduction of MUP, alcohol sales have fallen by 3%, and at least 156 fewer people are estimated to die each year due to their drinking.

The impact of MUP on moderate drinkers is relatively small. Moderate drinkers, even those in lower-income groups, buy very little alcohol for less than the minimum unit price. As a result, their consumption and spending are not significantly affected by the policy. For example, research has estimated that the introduction of a 50p MUP in Scotland in 2018 increased moderate drinkers' spending on alcohol by just £2 per year.

In contrast, heavy drinkers, especially those in lower-income groups, are more likely to buy cheap alcohol and are therefore more affected by MUP. Among harmful drinkers, a 45p minimum unit price was estimated to have a large effect on consumption, particularly for those in the lowest income group. For example, consumption for the lowest income group of harmful drinkers was estimated to fall by 300 units per year, compared to 34 units in the highest income group.

Overall, MUP appears to be an effective and well-targeted approach to reducing alcohol-related harm, particularly among heavy drinkers in lower-income groups, without penalising moderate drinkers.

Minimum unit pricing reduces alcohol-related deaths and hospital admissions

Alcohol is a leading cause of early death and loss of healthy years worldwide. Alcohol-related liver disease (ARLD) is a significant contributor to alcohol-related deaths and hospital admissions, with 78% of alcohol-specific deaths in the UK in 2021 being attributed to ARLD. ARLD hospital admissions have also been on the rise, with a peak of 45.5 per 100,000 admissions in England in 2020-2021.

Minimum unit pricing (MUP) is a policy that sets a legally required floor price per standard drink or unit of alcohol. It aims to reduce alcohol-related harm by making alcohol less affordable, specifically targeting cheap, high-strength alcohol. The idea is that by increasing the price of alcohol, people will buy and consume less, leading to a reduction in alcohol-related harms.

Several countries and regions have implemented MUP, including Scotland, Wales, and parts of Canada and Europe. Research and studies from these regions have shown that MUP has been effective in reducing alcohol-related deaths and hospital admissions. For example, a study in Scotland found that MUP reduced deaths directly caused by alcohol consumption by 13.4% and hospital admissions by 4.1%, with the greatest reductions seen in men and those from deprived areas. Modelling studies have predicted that MUP could reduce alcohol-related hospitalisations by 3%–10% annually, while ""real-world" studies have confirmed a reduction of 2%–9% for acute conditions and 4%–9% for chronic conditions.

The impact of MUP on retailers and the alcohol industry has been mixed, with some retailers reporting initial negatives such as training costs and product wastage. However, overall, there has been little evidence of substantial negative impacts on the industry, and retailers have adapted well to the policy over time.

In conclusion, minimum unit pricing has been shown to reduce alcohol-related deaths and hospital admissions by decreasing alcohol consumption, particularly among high-risk groups. It is an effective public health approach to addressing the harms associated with alcohol misuse.

Minimum unit pricing increases the cost of very strong alcohol

Minimum unit pricing (MUP) is a policy that sets a minimum price per unit of alcohol, with the aim of reducing alcohol-related harm by making alcohol less affordable. While alcohol minimum pricing policies are more often used in other countries than in the United States, Scotland became the first country in the world to introduce a MUP in 2018, setting a minimum price of 50p per unit. This meant that a unit of alcohol could not be sold for less than this price, increasing the cost of the cheapest, higher-strength alcohol. The Welsh Government followed suit in 2020, setting the same minimum price per unit.

Research has shown that MUP policies are effective in reducing the availability and sale of cheap, high-strength alcohol. Retailers have reported that their customers are buying less of these products, and in some cases, they have stopped selling them altogether. As a result, there has been a statistically significant impact on the number of alcohol units purchased by households in Wales compared to England.

While MUP policies have been successful in reducing alcohol-related harm and deaths, there have been some concerns raised by retailers, particularly regarding initial costs, product wastage, and difficulties pricing special offers. However, over time, retailers have adapted well to the policy, and there has been very little evidence for the need for enforcement of the MUP.

Despite the positive impacts of MUP, unusually high inflation during 2023-2024 has impacted its continued effectiveness. As a result, the Scottish Government increased the MUP to 65p per unit in April 2024. This increase aims to balance the level of the MUP during a cost-of-living squeeze while maintaining the benefits of reducing harmful levels of drinking.

Overall, minimum unit pricing increases the cost of very strong alcohol, leading to a decrease in alcohol-related harm and deaths. While there have been some challenges, the policy has been successful in Scotland and Wales, with potential for further implementation in other parts of the United Kingdom and beyond.

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