Minimum pricing of alcohol

The evidence suggests that young people, binge drinkers and heavier drinkers tend to drink cheaper products.  Therefore, it is suggested that any increase in price would reduce the amount of alcohol consumed by these groups rather than moderate drinkers 1, 2.

Description of the policy

The government is proposing to ban retailers from selling alcohol below the rate of duty plus VAT. The table below presents the minimum price for a number of key alcoholic products according to this policy 3.

Product (alcohol by volume)	Minimum price
1 litre bottle of vodka  (37.5%)	£10.71
440ml can of lager (4.2%)	£0.38
1 litre bottle of cider (4.5%)	£0.40
750ml bottle of wine (12.5%)	£2.0

 

Evidence of the possible benefits

A wide range of evidence, taken from surveys, studies of individual behaviours and observations of the relationship between the levels of alcohol consumption and price over time, identifies a strong relationship between increases in the cost of alcohol, reductions in its consumption and the harm it causes.1,2,4.

A model developed by researchers used information from other surveys and studies to predict the impact of different minimum costs per unit of alcohol on health outcomes.  This found that the benefits to health were greater the higher the minimum price.

Over 10 years, it was estimated that a minimum price of 30p per unit of alcohol would result in 302 fewer deaths and 9,900 fewer hospital admissions as a result of alcohol a year.  When the minimum price was set at 50p per unit there would be 3,393 fewer deaths and 97,900 fewer hospital admissions a year 5.

Product (alcohol by          volume)	Units	Minimum price -rate of   duty + VAT	30p per unit price	50p per unit price
1 litre bottle of vodka  (37.5%)	37.5	£10.71	£11.25	£18.75
440ml can of lager (4.2%)	1.9	£0.38	£0.57	£0.95
1 litre bottle of cider (4.5%)	4.5	£0.40	£1.35	£2.25
750ml bottle of wine (12.5%)	9.4	£2.03	£2.82	£4.7

The impact on health of minimum pricing of alcohol relies on alcohol becoming more expensive than it is currently.  Additionally, the health benefits derived from minimum pricing depends on the amount alcohol costs increases by.

Evidence of the possible risks

If the policy does not result in changes in the cost of alcohol, there will be no change to people’s health.  The evidence available suggests that the government’s proposed minimum price will not make a significant change to the cost of alcohol.

Reviews of current prices in supermarkets of alcoholic products, including promotions, have found that there would be very few price increases if the proposed minimum price was introduced.  One review of over 3,000 drink deals in supermarkets found that not one price would have been increased 6.

The model described above would also suggest minimal health benefits from the proposed minimum price.  At duty plus VAT, the minimum price per unit for lager would be 21p, wine 22p, vodka 28p and cider 9p.  Using the modelled health benefits over 10 years, a price per unit of 20p and 30p would result in 32 and 302 fewer deaths per year respectively.  This benefit is likely to be smaller in 2011 as the model was developed using 2008 prices 5.

Any implications for health & well-being

The policy of banning the sale of alcohol below the rate of duty plus VAT appears to potentially have very little impact on health and wellbeing.

This policy may ease the introduction of greater increases in alcohol prices in future which could result in reduced harms to health caused by alcohol.

Author: Samantha F Fox MPH,  Public Health Specialty Registrar, London Deanery

UK area affected: England & Wales

NICE Guidance on this topic

National Institute for Health and Clinical Excellence (2010) Alcohol-use disorders: preventing the  development of hazardous and harmful drinking http://www.nice.org.uk/nicemedia/live/13001/48984/48984.pdf

 

 

References
1. Anderson, P,. Chisholm., Fuhr, DC. (2009) Effectiveness and cost-eff ectiveness of policies and programmes to reduce the harm caused by alcohol. Lancet; 373: pp.2234–46.

2. Booth, A., Brennan, A., Mejer, P., O’Reilly, D., Purshouse, R., Stockwell, T., Sutton, A., Taylor, K., Wilkinson, A. and Wong, R. (2008) Independent  review of the effects of alcohol pricing and promotion: part a – systematic reviews. University of Sheffield, Sheffield. http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/documents/digitalasset/dh_091366.pdf

3. Home Office, Drugs and Alcohol. http://www.homeoffice.gov.uk/drugs/alcohol/alcohol-pricing/

4. National Institute for Health and Clinical Excellence (2010) Alcohol-use disorders: preventing the  development of hazardous and harmful drinking http://www.nice.org.uk/nicemedia/live/13001/48984/48984.pdf

5. Brennan, A., Booth, A., Mejer, P., O’Reilly, Purshouse, R., D., Rafia, R., Stockwell, T., Sutton, A., Taylor, K., Wilkinson, A. and Wong, R.  (2008) Independent review of the effects of alcohol pricing and promotion: part b – modelling the potential impacts of pricing and promotion for alcohol in england: results from the Sheffield alcohol policy model version 2008 (1-1) University of Sheffield, Sheffield. http://www.dh.gov.uk/prod_consum_dh/groups/dh_digitalassets/documents/digitalasset/dh_091364.pdf

6. Guardian online, Datablog Alcohol minimum price: the data that shows if it will have an impact http://www.guardian.co.uk/news/datablog/2011/feb/16/alcohol-minimum-price-list