Welsh Government consults on raising minimum alcohol price following new research
The Welsh Government has launched a consultation on raising the minimum unit price (MUP) for alcohol from 50p to 65p per unit, alongside new research showing the potential health and economic benefits of the increase.
A recent Welsh Government-commissioned report uses detailed modelling to predict how raising the minimum alcohol price could affect drinking habits and health across Wales.
It estimates the impact of different minimum price thresholds on drinking behaviour, health outcomes and government revenues in Wales.
At present, 77% of adult drinkers in Wales consume alcohol within recommended low-risk guidelines, while 19% drink at hazardous levels and just over 4% are classified as harmful drinkers, consuming more than 50 units per week (men) or 35 units (women). The heaviest 4% account for more than a quarter (27%) of all alcohol consumed.
The modelling predicts that raising the minimum price to 65p would reduce average alcohol consumption by 2.7% per drinker per week, while reducing the number of harmful drinkers by approximately 5.7%.
Over a 20-year period, this policy could prevent around 628 alcohol-specific deaths and reduce hospital admissions linked to alcohol by more than 7,200.
Significantly, the greatest benefits would be seen in the most deprived areas of Wales.
Despite consuming slightly less alcohol on average than those in more affluent areas, the most deprived groups suffer over three times higher rates of alcohol-related deaths and hospital admissions.
The modelling suggests a 65p minimum price could reduce deaths in the most deprived communities by nearly 390, compared with 70 fewer deaths in the least deprived areas.
The report also highlights potential NHS savings of nearly £15 million over 20 years from the reduced burden of alcohol-related illness and hospital admissions.
Raising the minimum unit price would slightly lower how much people spend on alcohol, by about 13p per week on average.
But it would also reduce the government’s income from alcohol taxes by around £109 million a year, mainly because fewer very cheap alcohol products would be sold in shops.
To get the same health benefits as raising the minimum price to 65p, alcohol taxes would have to increase by almost 6%.
Tax rises bring in more money for the government, but they don’t help poorer communities as much as the minimum price does.
That makes the minimum price a better way to reduce health inequalities.
The report stresses the importance of adjusting the minimum price to keep pace with inflation.
Without regular increases, the real value of the 50p minimum price will fall to the equivalent of 39p by 2026 due to recent high inflation, leading to increased harmful drinking, especially in deprived areas.
The modelling shows failing to adjust the price would result in nearly 5,000 additional harmful drinkers and thousands more hospital admissions over time.
Minister for Mental Health and Wellbeing Sarah Murphy said: “Since we brought minimum unit pricing into place there has been a pandemic, a cost-of-living crisis and high inflation. Despite all of these, research through independent evaluations has shown the policy, which is not a tax, has had a positive impact and has helped reduce levels of harmful drinking.”
She added: “We’re consulting on raising the level as high inflation has made the 50p rate ineffective and reduced its value in real terms to 39p in 2020 prices. Due to this it is no longer significantly influencing the price of the cheapest alcohol and we need to review it.”
The consultation on raising the minimum unit price is open until September 29, giving the public and stakeholders the chance to have their say on the future of the policy.
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