Alcohol pricing and health

Predictions of the benefits associated with increasing prices

An area of policy that the UK’s Conservatives and Liberal Democrats (who in May 2010 created a coalition government) may have in common is their attitudes towards policy to help curb the problem of binge drinking. While the emphasis on the problems alcohol causes differ slightly, both seem to be considering taking action through policies based on alcohol pricing.

In the Conservative party’s manifesto, they highlight the role alcohol plays in drink-fuelled violence and disorder, whilst the Liberal Democrats stressed role of excessive drinking in ill health outcomes and criminal activity. Both parties proposed the measure of banning below-cost selling of alcohol. In addition, the Conservatives proposed to raise taxes on those drinks linked to antisocial drinking, while the Liberal Democrats were in favour of minimum pricing, subject to work establishing how this strategy could be used to tackle problems of irresponsible drinking.

These policies seem broadly in line with evidence presented in the Lancet in March and April 2010 on policy on alcohol pricing and its estimated effects of this on health outcomes in England. Gilmore and Atkinson welcomed the call for a minimum unit price by the House of Commons Health Committee. While they pointed out that minimum unit price is not a silver bullet for alcohol-related harm but represents just one of a number of potential measures, to omit it from policy would be to disregard the compelling evidence supporting it. Estimated evidence of the effect of alcohol pricing policies was presented in a study by Purshouse et al. The study assessed the effects of alcohol pricing in various population subgroups, and found that general price increases were effective for reduction of consumption, health-care costs, and health-related quality of life losses in all population subgroups. In light of this finding, they discussed how minimum pricing policies and discounting restrictions might warrant further consideration in policy because both strategies are estimated to reduce alcohol consumption, and in turn lower related health harms and costs, with drinker spending increases targeting those who incur the most harm.  Gilmore and Atkinson pointed out that this may make healthier choices easier for people to follow, because supermarkets could transfer subsidies they devote to discounting alcohol to grocery items.

Sources: Conservative Party Manifesto and Liberal Democrat Party Manifesto; The Lancet, March and April 2010.

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