Pricing and taxation
Alcohol is 75% more affordable today than in 1980.
There are more than 120 academic studies which have shown that there is a clear link between the price of alcohol and consumption. Studies have also shown that there is a clear link between alcohol consumption, at a population level, and the harm that is incurred by that population.
A report, 'Future proof: can we afford the cost of drinking too much?' which was commissioned by Alcohol Concern through a grant from the Alcohol Education and Research Council and published in 2009, showed the link between consumption and mortality in the UK.
Alcohol Concern has been campaigning for the introduction of mechanisms that redresses the balance between earnings and the price of alcohol. These include an increase in alcohol taxation, especially cheap, high strength products such as white ciders and spirits and - more recently - we have been arguing for the introduction of a minimum per unit price for alcohol.
Raising the price of alcohol would have the greatest impact on heavy drinkers and young drinkers as they spend a higher proportion of their money on alcohol than moderate drinkers. Studies suggest that 70% of all alcohol is consumed by 30% of all drinkers (a large portion of who are heavy and/or young drinkers).
Lowering the level of harmful drinking can be achieved by lowering affordability. This should be coupled with measures which successfully identify problem drinkers and refer them to adequately funded and easily accessible alcohol services.
Minimum pricing
A minimum price per unit of alcohol is an effective mechanism to regulate the price of alcohol. This would set the price of alcohol according to the amount of pure alcohol a product contains. Essentially, the more alcohol a product contains per millilitre the higher the minimum price it could be sold at.
For example a standard bottle of wine (75cl) containing nine units of alcohol (11.5% ABV) would cost a minimum of £4.50 if there was a minimum price of 50p per litre or £3.60 if there was a minimum per unit price of 40p.
Minimum pricing would have a limited impact on the price of alcohol in pubs and clubs as alcohol in the on-trade tends to be more expensive. For example a standard pint of 4% beer would have to be sold for a minimum of £1 - much less than the cost of an average pint.
Key benefits of unit minimum pricing include:
- Reduced consumption of alcohol leading to fewer alcohol-related hospital admissions and a reduction in alcohol-related crime and disorder
- It is a targeted measure which has the greatest impact on heavy drinkers and young people. Moderate drinkers would pay only 22p extra a week
- Certain irresponsible promotions such as 'all you can drink for £10' would no longer be possible.
For more information about alcohol and minimum pricing please read our report 'The price is right: protecting communities through action on alcohol sales'.