In a bid to curb alcohol-related disorders, harm and addiction, Scotland has introduced a new Minimum Unit Price (MUP) for alcohol, increasing it from 50p to 65p.
This new policy is part of a wider initiative to reduce harmful drinking and related social and health issues and marks a transformative step in alcohol regulation.
This article will cover Scotland’s MUP in more detail and explore the reasons for the increase and the impact this could have on both the economy and public health.
Understanding Scotland’s Alcohol Price Increase in 2024
Minimum Unit Pricing is a public health policy that sets a baseline cost per unit of alcohol in a bid to address alcohol-related issues.
It means that alcoholic drinks can’t be sold below a specific price, and that price is determined by the alcohol content in each unit. In 2018, Scotland was the first country worldwide to implement such a policy. However, other countries soon followed suit.
The main aim of MUP is to reduce excessive alcohol consumption, and it explicitly targets high-strength alcoholic drinks that are commonly inexpensive. Studies have shown that it’s these drinks that contribute to problem drinking patterns, especially among vulnerable populations, so by making them less accessible, it’s thought that health and social problems will improve. What’s more, by linking the price to the alcohol content, MUP aims to shift consumer habits and create a healthier society.
Why Scotland Implemented MUP in 2018
Scotland’s introduction of MUP was in response to rising rates of alcohol-related harm across the country. Alcohol misuse had long been a public health issue and was the cause of many preventable deaths, hospitalisations and social challenges. Previous to MUP, Scotland had one of the highest rates of alcohol consumption in the UK, with an alarming number of alcohol-related deaths in deprived areas.
To combat these issues, the Scottish Government set an initial MUP of 50p per unit, targeting high-strength, low-cost alcoholic beverages. So far, the evaluation of the policy has shown that MUP has successfully delivered its purpose. Research estimates that MUP has saved more than 260 lives and averted nearly 900 hospital admissions each year, on average. This is because MUP has reduced alcohol consumption in Scotland by 3%. It’s thought that the recent increase in MUP will benefit the country further.
Reasons Behind the 2024 Increase to 65p Per Unit
The recent shift from 50p to 65p comes down to three main factors: health concerns, economic changes and public health advocacy.
- Health concerns – In 2023, Scotland saw a 15-year high in deaths related to alcohol, which led experts to call for an increase in MUP. The spike in deaths highlighted the policy’s necessity as a preventive measure among high-risk groups.
- Economic adjustments – Since 2018, inflation has diminished the intended impact of the original 50p MUP. Analysis shows that to maintain the effectiveness of the policy, a price adjustment was needed to ensure that it remains a deterrent to purchasing cheap yet high-strength beverages.
- Public health advocacy – A number of public health organisations, including Public Health Scotland, support MUP and have been calling for increased price controls to further reduce harm. This includes curbing excessive drinking and lowering the number of alcohol addiction cases, alcohol-related diseases, hospital admissions and premature deaths.
Alcohol Pricing in Scotland: Will It Rise Again?
The MUP is subject to periodic review and regular assessments of its effectiveness will take place. This means that further price adjustments may be made in the future. Future increases may even be needed in order to keep pace with inflation and to ensure that the policy remains an effective deterrent.
Currently, other parts of the UK and Europe are considering similar policies, and Scotland’s commitment to long-term health goals could mean that MUP continues to evolve.
The Impact of MUP on Alcohol Prices in Scotland
As a result of the new MUP being 65p per unit, some alcoholic beverages have increased in price – especially those with a higher alcohol content. For example, a 700ml bottle of whisky with 40% ABV now has a minimum retail price of £18.20 compared to £14. A 750ml bottle of wine at 12% ABV now costs a minimum of £5.85. A can of strong cider at 7.5% ABV, which might have previously cost £1, will now cost at least £2.43.
The aim is that these price changes will directly affect the affordability of strong beverages and therefore encourage consumers to opt for lower alcohol alternatives or small volume options.
How the Increased MUP Affects Consumers and Retailers
Individuals who regularly purchase high-strength alcoholic drinks will likely see a significant increase in their overall spending on alcohol. This may lead to a decrease in consumption, especially for those on a budget. For retailers, MUP requires them to adjust their pricing to comply with regulations.
Again, this may create a challenge as they could face potential backlash from unhappy customers. Some retailers may even see a shift in demand as consumers look for lower-cost or lower-alcohol alternatives. Compared to smaller independent stores, large supermarkets are typically better equipped to deal with these changes.
Public and Industry Response to the Increased MUP
Public opinion on MUP and its increase is mixed. While health advocates and organisations have welcomed the change, some argue it is placing undue pressure on low-income consumers. Certain retail associations have also expressed their concerns about the impact on businesses and consumers.
Advocacy groups have, however, emphasised the wider benefits of MUP, stating that the policy targets cheap and high-strength alcohol that is typically linked to dangerous drinking patterns. What’s more, Public Health Scotland has argued that the policy’s potential health benefits outweigh any economic drawbacks, meaning it’s a worthwhile measure for society.
Alcohol Pricing in Scotland: The Key Takeaways
While the Minimum Unit Price for Alcohol in Scotland has been met with some criticism, the potential benefits of it can’t be denied. And if the policy succeeds in its goals to curb alcohol-related harm in Scotland and prevent health issues, it could set a precedent for other similar initiatives for alcohol minimum pricing in the UK and across the world.
One thing’s for sure: the new alcohol pricing in Scotland is a bold step towards encouraging a healthier and more sustainable drinking culture and ultimately contributing to a healthier society.
