Will Wales See a 30% Increase in Minimum Alcohol Prices?

The Welsh government is set to increase the minimum unit price (MUP) for alcohol from 50p to 65p per unit, effective from October. This change aims to combat alcohol-related harm and deaths, aligning Wales with Scotland's pricing strategy. The policy is anticipated to significantly raise the prices of alcoholic beverages, such as a can of lager rising from £1 to £1.30 and a £2.50 bottle of cider going up to £3.25. While many health advocates support this measure, critics, particularly from the Conservative Party, argue it unfairly burdens regular consumers.

Last updated: 22 September 2023 (BST)

What’s happening now

The decision to raise the minimum unit price for alcohol in Wales has recently gained approval from Senedd members, with the new rate of 65p set to take effect from October 2023. This policy aims to address the rising concerns surrounding alcohol-related harm, particularly given the alarming statistics indicating a 50% increase in alcohol-related deaths in Wales between 2019 and 2023. The Welsh government asserts that this move will help save lives and reduce the burden of alcohol-related health issues on the public.

Key takeaways

The MUP for alcohol in Wales will rise from 50p to 65p from October 2023.
This increase is expected to significantly raise prices for alcoholic beverages.
Supporters argue it will reduce alcohol-related deaths and harm.
Opponents claim it unfairly affects regular consumers, particularly those on lower incomes.
Independent research suggests the policy could prevent over 900 alcohol-related deaths in 20 years.

Timeline: how we got here

The journey to the revised minimum unit price for alcohol in Wales has been shaped by various milestones:

2010: The idea of minimum unit pricing is first proposed in Wales.
2015: The Welsh government introduces the Public Health (Minimum Price for Alcohol) (Wales) Act.
2020: The MUP is implemented at 50p per unit following extensive consultation.
2023: Plans announced to increase the MUP to 65p, effective October.

What’s new vs what’s known

New today/this week

The key development this week is the formal backing from Senedd members for the increase in the minimum unit price, which will directly affect the cost of alcoholic beverages across Wales. This change follows a public consultation and reflects ongoing efforts to tackle alcohol misuse in the region.

What was already established

Prior to this decision, the minimum unit price for alcohol had been set at 50p since its implementation in 2020. The policy has been a focal point in discussions regarding public health, with growing evidence linking high alcohol consumption to increases in related health issues and deaths. The previous pricing was perceived as inadequate in combating these issues effectively.

Impact for the UK

Consumers and households

The rise in minimum unit pricing is likely to have a notable impact on consumers in Wales. For instance, a typical can of lager priced at £1 will now cost at least £1.30, affecting household budgets, particularly for low-income families. This financial burden is a key point of contention among critics, who argue that it penalises responsible drinkers while failing to address the root causes of alcohol abuse.

Businesses and jobs

For businesses in the hospitality sector, particularly pubs and bars, this increase may lead to decreased sales as customers might seek cheaper alternatives or reduce their overall alcohol consumption. This could have wider implications for employment in these sectors, as establishments may struggle to maintain profitability in a more price-sensitive market.

Policy and regulation

The Welsh government is committed to enhancing public health through regulatory measures. The increase in MUP aligns with similar policies in Scotland and reflects a broader trend in the UK towards stricter alcohol control measures. As such, ongoing consultations and evaluations are expected to assess the effectiveness of this policy in reducing alcohol-related harm.

Numbers that matter

65p: New minimum unit price for alcohol in Wales, effective October 2023.
900: Estimated number of alcohol-related deaths prevented over 20 years due to the new MUP.
50%: Increase in alcohol-related deaths in Wales from 2019 to 2023.
5,000: Projected decrease in the number of harmful drinkers as a result of the policy.
£1.30: New minimum price for a can of lager, up from £1.

Definitions and jargon buster

Minimum Unit Price (MUP): The lowest price at which a unit of alcohol can be sold, aimed at reducing consumption and related harm.
Hazardous drinkers: Individuals whose drinking patterns pose a risk for harm but do not necessarily meet the criteria for alcohol dependence.
Harmful drinkers: Individuals whose consumption has already led to physical or psychological harm.

How to think about the next steps

Near term (0–4 weeks)

As the new MUP becomes effective, consumers and businesses should prepare for the immediate price changes. Awareness campaigns from the Welsh government are expected to inform the public about the rationale behind the price increase and its intended health benefits.

Medium term (1–6 months)

Over the coming months, the Welsh government will likely monitor the impact of the new MUP on consumption patterns and alcohol-related health outcomes. Evaluations will inform future policy decisions, including potential further adjustments to the pricing structure based on observed results.

Signals to watch

Changes in alcohol-related health statistics in Wales.
Responses from the hospitality sector regarding sales and pricing strategies.
Public feedback on the effectiveness and fairness of the MUP policy.

Practical guidance

Do

Stay informed about the pricing changes and adjust your budget accordingly.
Consider alternative beverage options that may be more affordable.
Support local businesses that may be affected by the price increase.

Don’t

Do not assume that all types of alcohol will see the same price increase; research specific products.
Do not overlook the potential health benefits associated with reduced alcohol consumption.
Do not ignore the feedback from community and health organisations regarding alcohol use and policy effectiveness.

Checklist

Review your current alcohol consumption habits.
Budget for potential increases in alcohol expenses after October.
Engage with local community resources that support responsible drinking initiatives.
Monitor public health updates regarding alcohol-related statistics.
Advocate for policies that promote public health and address alcohol misuse effectively.

Risks, caveats, and uncertainties

While the increased MUP aims to tackle alcohol-related harm, there are risks associated with its implementation. Critics argue that it may disproportionately impact low-income individuals who consume alcohol responsibly. Moreover, there is concern that problem drinkers may resort to stronger beverages or illicit sources to circumvent the pricing policy. Continuous evaluation will be necessary to address these potential pitfalls and ensure the policy effectively meets its health objectives.

Bottom line

The increase in minimum unit pricing for alcohol in Wales represents a significant step towards addressing the public health crisis linked to alcohol misuse. While the policy aims to save lives and reduce consumption, it also raises questions about its impact on everyday consumers. Observing the outcomes of this policy in the coming months will be crucial for determining its effectiveness and fairness in the context of Welsh society.

FAQs

What is the new minimum unit price for alcohol in Wales?

The new minimum unit price for alcohol in Wales will be set at 65p per unit, effective from October 2023.

How will the price increase affect consumers?

This increase is expected to raise the prices of alcoholic beverages significantly, impacting household budgets, especially for lower-income consumers.

What are the expected health benefits of this policy?

The policy aims to prevent over 900 alcohol-related deaths over the next 20 years and reduce the number of harmful drinkers by nearly 5,000.