Minimum Unit Pricing (MUP)

What is Minimum Unit Pricing?

Minimum Unit Pricing (MUP) is a way to establish a ‘floor price’ below which alcohol cannot be legally sold. Essentially, MUP sets the lowest price an alcoholic drink can be sold. By law, alcohol cannot be sold cheaper than this.

 

MUP aims to reduce alcohol-related harm by ensuring that the exceptionally cheap, strong alcohol, that was widely available throughout the off-licence sector is curbed.

Check out our MUP calculator - simply enter the volume and alcohol content and our tool will tell you the minimum price that can be charged

MUP Calculator

Background to MUP in Ireland

By the late 2000s concerns over rising alcohol consumption reached new heights and the Irish government looked for an alternative approach to address alcohol and its associated harms. Through the efforts of the Department of Health, alcohol became increasingly defined as a threat to public health. This reframing of alcohol contributed to a lengthy debate over whether Ireland should introduce new restrictions on the availability, price, and promotion of alcohol.

 

To address the harms that alcohol causes to individuals, families and society the Irish government passed a landmark piece of legislation in 2018 – the Public Health (Alcohol) Act 2018 (PHAA) – the aim of which was to reduce Ireland’s levels of alcohol consumption.

 

The Act included a suite of measures based on the World Health Organisation’s ‘Best Buys’ to reduce alcohol harm by taking action on a population level. These include controls on pricing, marketing and availability as well as ground-breaking measures on health information labelling on alcohol products including cancer warnings.

 

The PHAA has been described as the most contested piece of legislation in the history of the state meeting trenchant opposition from the global alcohol industry, but polling data found strong public support for government action and after more than three years of parliamentary debate it received cross-party support and was signed into law in October 2018. 

 

Central to the PHAA was the introduction of a control on pricing – the introduction of a ‘floor price’ below which alcohol could not be legally sold – this is known as Minimum Unit Pricing. Section 11 of the PHAA sets the minimum price for alcohol products – the lowest price an alcoholic drink can be legally sold for.

 

Section 11 took effect on 4 January 2022 with the MUP for alcohol products set at €0.10 per gram of alcohol. Therefore, in Ireland, a Standard Drink (10gms of alcohol) cannot be sold for less than €1. The MUP threshold, set in 2013 and introduced in 2022, has remained static since its introduction.

Does MUP impact the price of a drink in the pub?

It is important to note that MUP has no impact on the price of a pint, or any alcohol sold in pubs, clubs or restaurants and has little or no impact on those who drink in a low-risk manner.

 

MUP aims to reduce alcohol-related harm by ensuring that the exceptionally cheap, strong alcohol, that was widely available throughout the off-licence sector is curbed.

Why introduce MUP?

In Ireland our unhealthy use of alcohol takes a heavy toll on our society, which impacts greatly on healthcare services and demands significant levels of public expenditure.

 

Alcohol-related harm is most common among those with problematic drinking patterns. Those whose drinking is indicative of Alcohol Use Disorder are thirteen times more likely than low-risk drinkers to experience any of the following harms – health issues, being involved in an accident or in a fight, experiencing role impairment, or negative impacts on their home life.

 

However, despite this, before MUP it was still possible for a man to reach his low risk weekly drinking limit for just €7.65, while a woman could reach her low risk weekly drinking limit (17 Standard Drinks for men; 11 for women) for just €4.95. Supported by the alcohol producers, retailers hyper-discounted alcohol products often as ‘loss leaders’ to get people into their stores. Prior to the introduction of MUP, the Irish consumer could spend as little as:

  • 0.45c for a Standard Drink of Cider
  • 0.46c for a Standard Drink of Beer
  • 0.56c for a Standard Drink of Wine
  • 0.68c for a Standard Drink of Gin            
  • 0.63c for a Standard Drink of Vodka
  • 0.68c for a Standard Drink of Whiskey

(Alcohol Action Ireland price survey 2021)

 

With the introduction of MUP in Ireland, a Standard Drink (10gms alcohol) cannot be sold for less than €1.

Does MUP save lives?

MUP can save lives precisely because it targets only the strongest and cheapest drinks, which are the alcohol products favoured by two groups most vulnerable to alcohol-related harm – the very heaviest drinkers among us, who generally seek to get as much alcohol as they can for as little money as possible, and our young people, who generally have the least disposable income but the highest prevalence of binge drinking.

Where else is MUP in operation?

Minimum pricing for alcohol products, as an initiative for better public health, is operational in Scotland, Wales, Jersey, Provinces of Canada, the Northern Territory (Australia), Russia, Armenia, Ukraine, Kazakhstan.

Does the World Health Organisation support MUP?

The World Health Organisation, in its recommended policy actions on alcohol pricing, outlines that evidence to support the effectiveness of MUP is robust. Unlike increasing taxation, which affects the price of all products, MUP increases the price of only the cheapest alcohol; “MUP is likely to be a highly effective measure for reducing alcohol consumption, alcohol-related hospital admissions, deaths, criminal offences and workplace absence.”

Does MUP work?

Minimum unit pricing aims to reduce alcohol-related harm by making the cheapest and strongest types of alcohol less affordable. International research shows strong evidence that this policy lever helps reduce alcohol-related deaths and hospital admissions, thereby saving lives and easing pressure on the health service.

 

On 1 May 2018 Scotland became the first country in the world to introduce MUP. The decision to pursue such a policy control on alcohol pricing was lauded by public health advocates and criticised by industry in equal measure.

 

Nevertheless, the results of MUP in Scotland are clear: an evaluation of the effects of MUP by Public Health Scotland drew on the findings of 40 individual studies and concluded that overall MUP had a positive impact on health outcomes, particularly in the most deprived areas, while finding no substantial negative impacts – contrary to what some opponents of the policy had predicted before its introduction.

 

In March 2020, the Welsh government followed suit and introduced MUP across the country. Again, as with Scotland, subsequent analysis of the effects of MUP showed positive results. MUP in Wales was associated with reduced alcohol purchases and changed purchasing behaviour, with the analysis projecting that the changes brought about by MUP should lead to public health benefits in the longer term.

 

There are also promising early results for Ireland. There was a 5% drop in alcohol consumption in 2022 compared with the pre-pandemic level in 2019. Furthermore, a study of Emergency Department (ED) attendances at Beaumont Hospital, Dublin found an overall reduction in alcohol-related ED presentations in the period following MUP. While the researchers warned that it was not possible to conclude a direct effect, it does point to areas where the situation in Ireland seems to be mirroring the positive results observed in more detail in Scotland.

Does MUP make alcohol more expensive?

MUP has no impact on the price of a pint, or any alcohol sold in pubs, clubs, or restaurants. MUP targets the cheapest and strongest alcohol sold in the off-trade – that is, off-licences, shops, supermarkets, and so on – and research shows that alcohol sold in the off-trade is dangerously cheap and causes significant harm.

 

Alcohol affordability seeks to measure people’s ability to buy alcohol, which is a function not just of price, but also of disposable income. Affordability has been an important driver in the growth of alcohol consumption in Ireland, which has doubled in the past 50 years. A study of alcohol affordability found that in 2019 Ireland had the second most affordable alcohol across the OECD countries.

While much is made of Ireland’s relatively high excise duty rates in relation to other countries, the reality is that alcohol remains very affordable, especially when bought in the off-trade (where excise duty can be absorbed and offset against other goods), which means that people can drink to harmful levels at relatively little expense.

 

Research from the University of Sheffield indicates that shop-bought alcohol in Ireland today is around the same price that it was 20 years ago, with the introduction of Minimum Unit Pricing in 2022 only bringing it back to 2004 levels. As of 2024 alcohol in the off-trade is 85% more affordable than in 2004.

Despite constant media obsessing over the price of a pint, even alcohol bought in the on-trade is 14% more affordable than it was two decades ago when prices are adjusted for inflation. Indeed, in 2021 Ireland had the second most affordable alcohol of OECD (Organisation for Economic Co-operation and Development) members, and price increases have kept in line with inflation, meaning that alcohol was as affordable in 2024 as it was in 2003.

Does MUP punish the less well off?

MUP is a population level policy which targets the cheapest and strongest alcohol sold in the off-trade, regardless of who is purchasing it. The policy is designed to improve public health by reducing alcohol consumption, particularly among the percentage of people who drink at harmful levels and are at high risk of experiencing health problems from their drinking.

 

This is incredibly important in the Irish context given that there were 18,877 discharges from Irish hospitals in 2021 that were wholly attributable to alcohol use and that an estimated four people die in Ireland every day due to alcohol use.

 

A key part of the appeal of MUP to policy makers is the fact that it effectively targets the cheap alcohol, that is drunk disproportionately by heavier drinkers, while having relatively little impact on the alcohol consumed by moderate drinkers. The research indicates that this remains true even among lower income groups, who pay less, on average, per unit of alcohol, than those in higher income groups.

 

Indeed, research from Scotland shows that households that generally bought moderate amounts of alcohol saw negligible increases in expenditure on alcohol following the introduction of MUP, particularly lower-income households. Evidence on the effectiveness of MUP also shows that lower income groups are by far the biggest beneficiaries of the policy in terms of health improvements, where the same research shows the greatest reduction in alcohol-related deaths can be observed among those living in the most disadvantaged areas.

 

Therefore, MUP does not penalise responsible drinkers, because the effects on this group are negligible, even in the lowest income groups. Instead, the policy targets those at greatest risk of harm – heavier drinkers on low incomes.

 

As such, the benefits of the policy are also concentrated on this group.

Does Ireland still need MUP?

Alcohol consumption in Ireland is still at a very high level. In 2013 the government set a target for the year 2020 to reduce alcohol consumption to 9.1 litres of pure alcohol per capita. However, the target was missed and we are still some distance from realizing this figure. Resultantly, more than half of Irish drinkers are classified as hazardous drinkers. Within that cohort of hazardous drinkers, there are 578,000 people with an alcohol use disorder (AUD), of which 90,000 are at a severe level.

 

With such levels of alcohol consumption come associated harms – such as the significant impact on public health and the health service, on crime and the criminal justice system, on road safety, as well as social and economic problems for the state. Therefore, it is imperative that Ireland has alcohol policies which ensure a reduction in alcohol consumption at a population level, and MUP is a key policy lever in this regard.

 

Furthermore – and it cannot be said enough – MUP does not increase the price of a pint. Indeed, alcohol in off-licences and pubs is more affordable now than it was 20 years ago.

 

MUP is a solution, not a problem. MUP targets the harmful drinking of cheap, strong alcohol – this sort of alcohol consumption causes significant health, social, and economic problems – the payment for which is borne by the taxpayer. Therefore, as MUP reduces these harms, it saves taxpayers money.  

Are the government profiting from MUP?

MUP is not a tax and does not generate income for the government. An important difference between MUP and an increase in alcohol taxes is where this additional revenue goes. When taxes increase, the additional revenue goes directly to government.

 

Under MUP, although a proportion of the increase in sales price for affected products does go to the government in the form of VAT, the majority of the additional revenue from selling alcohol at higher prices goes to the retailers and producers of alcohol.  As a result, we would expect the profits of shops, supermarkets and companies who make alcoholic products to increase under an MUP.

 

Some commentators have proposed the introduction of a ‘windfall tax’ on the profits of alcohol retailers and producers to recover some of this additional revenue for government. However, to date, no country with an MUP has introduced such a measure.

 

Separately there is also a case to be made for increases in excise duties. In Ireland these have not changed since 2013 and so like MUP are losing their value because of inflation.

What next for MUP?

Despite the successes of MUP in Scotland, and the early positive indications in Ireland, it is important to note that while MUP works to reduce harm, the effects of inflation will wipe out many gains if action is not taken to adjust the MUP threshold.

 

In Ireland, the MUP rate was set over a decade ago in 2013, it was embedded in legislation in 2018, but it was only commenced in 2022. Over the course of those years, inflation has served to erode the effectiveness of MUP.

 

Therefore, if MUP is to continue to achieve its stated public health aim of making exceptionally cheap and strong alcohol less affordable, then the rate must be increased in line with inflation. The legislation provides that the Minister for Health may do so from January 2025.

Listen

In this episode, Eunan McKinney discusses with Alison Douglas of Alcohol Focus Scotland and Nic Taylor from Deakin University in Australia, the early indications from both Scotland and Northern Territory, AU, the effectiveness of this public health measure in addressing harmful alcohol use and reducing related harm. This discussion is introduced by Minister Frank Feighan, TD, Minister for Public Health, who was instrumental in advancing the commencement of MUP in Ireland.

Check out our MUP calculator - simply enter the volume and alcohol content and our tool will tell you the minimum price that can be charged

MUP Calculator

Sheffield Alcohol Policy Model and its assessment of the impact of MUP in Ireland

You can read the report relating to MUP in the Republic of Ireland here:

The University of Sheffield modelling estimates that with a €1 MUP per standard drink (assuming that it’s updated annually in line with inflation):

  • Across the whole population, mean weekly consumption would reduce by 8.8%
  • Across the whole population, 37.5% of alcohol purchased would be affected
  • In both income groups (those in poverty and not in poverty), absolute reductions in consumption are estimated to be small for low risk drinkers and much larger for high risk drinkers
  • Across the whole population, spending increases by 1.3% or €15.70 per drinker per year (€0.30 per week)
  • Effects on health are estimated to be substantial, with alcohol-attributable deaths estimated to reduce by approximately 197 per year after 20 years, by which time the full effects of the policy will be seen
  • Similar patterns are observed amongst reductions in alcohol-related hospital admissions, with an estimated 5,878 fewer admissions per year across the population
  • Direct healthcare costs are estimated to reduce by €7.4m in year 1 and €254.7m cumulatively over the first 20 years of the policy
  • Crime is estimated to fall by 1,493 offences per year overall and the costs of crime and policing are estimated to reduce by €7m in year one and by €102.7 cumulatively over 20 years
  • Workplace absence is estimated to be reduced by 115,600 per year. This is estimated to lead to an annual saving of €16.1m in year one and €236.6m over 20 years
  • The total societal value of these reductions in health, crime and work place harms is estimated at €1.7bn over the 20 year period modelled. This includes direct healthcare costs (€255m), crime costs (€103m), workplace costs (€237m) and a financial valuation of the quality adjusted life year (QALY) gain (€1.1bn)
  • Overall revenue to the Exchequer from duty and VAT receipts is estimated to reduce by 2.1% or €34.3 million
  • Revenue to retailers is estimated to increase by €68.5million (18.1%) in the off-trade and €9.3million (0.7%) in the on-trade. This is as reduced sales volumes are more than offset by the increased value of remaining sales.

The benefits of MUP

Minimum pricing would have a number of benefits as a measure to reduce alcohol-related harm in Ireland:

  • It will save lives
  • There will be a reduction in alcohol harm for both the person drinking in a high-risk manner and those around them
  • It will reduce alcohol-related hospital admissions
  • It will reduce alcohol-related crime
  • There will be a decrease in workplace absences due to alcohol
  • There will be a reduction in the costs of alcohol harm to the State and taxpayer
  • Those who drink within low risk limits are least likely to be affected in terms of spending and consumption, regardless of income levels
  • It will not affect the price of drink in pubs, clubs and restaurants
  • Larger retailers will not be able to simply absorb price increases, as can happen with other pricing policies (e.g. excise duty)
  • It will not affect alcohol exports or lead to job losses
  • It will not affect tourism
  • It will not significantly impact rates of cross-border shopping; Northern Ireland policy indicates an intention to introduce MUP after a public consultation on the matter.

To read about minimum pricing – and its potential benefits in Ireland – in more detail please see this report, commissioned by the Department of Health from the the Sheffield Alcohol Research Group (SARG) at the University of Sheffield.

 

Minimum Unit Pricing on Alcohol – what is it and what will it mean for me?

A blog from the HSE Alcohol Programme and AskAboutAlcohol.ie

https://www2.hse.ie/healthy-you/alcohol-blogs/minimum-unit-pricing-on-alcohol-what-is-it-and-what-will-it-mean-for-me-.html

Supporters

Alcohol Action Ireland brought together a coalition of 30 organisations who supported the introduction of minimum pricing to tackle alcohol-related harm in Ireland.

Members of the Minimum Pricing coalition:

  • Alcohol Action Ireland,
  • Alcohol Forum,
  • Barnardos,
  • Citywide Drugs Crisis Campaign,
  • Focus Ireland,
  • Foroige,
  • Irish Association of Social Care Workers,
  • Irish Association of Suicidology,
  • Mental Health Ireland,
  • Rape Crisis Network of Ireland,
  • Royal College of Physicians of Ireland,
  • Faculty of Public Health Medicine,
  • Social Care Ireland,
  • St Patrick’s University Hospital,
  • St Vincent de Paul,
  • The Alzheimer Society of Ireland,
  • The Ballymun Local Drugs Task Force,
  • The College of Psychiatry of Ireland,
  • The Clondalkin Local Drugs Task Force,
  • The National Family Support Network,
  • The Irish Cancer Society,
  • The Irish Heart Foundation,
  • The Irish Medical Organisation,
  • The ISPCC,
  • The National Youth Council of Ireland,
  • The No Name Club,
  • The RISE Foundation,
  • The Rutland Centre,
  • The Samaritans,
  • The Swan Family Support Organisation,
  • Women’s Aid,
  • Pavee Point Traveller and Roma Centre,
  • Console,
  • Aware,
  • Galway Healthy Cities Project.

What harm does alcohol cause?

Alcohol is no ordinary commodity; it is a depressant drug with significant health implications for those who use it, and it is associated with a risk of developing health problems such as mental and behavioural disorders, including alcohol dependence, major noncommunicable diseases such as liver cirrhosis, some cancers and cardiovascular diseases, as well as injuries resulting from crime and violence as well as road collisions, as recognised by the World Health Organisation.

 

Alcohol is classified as a Group 1 carcinogen by the International Agency for Research on Cancer (IARC) as there is a proven causal link between alcohol and several types of cancer. Furthermore, alcohol and crime have a closely interconnected relationship, with alcohol consumption being a contributing factor to crime and antisocial behaviour. Alcohol plays a key role in crimes such as public order offences, domestic violence, assault and murder, as well as rape and sexual assault.

 

The impact of alcohol harm for the state is enormous, encompassing not just health service costs, but it is a burden on policing, prisons, and the courts, it effects road safety through drunk driving and road collisions, and it has an economic impact in terms of workplace absenteeism, presentism, and productivity loss, to name but a few.

 

Therefore, it is little wonder that the OECD estimates that, for Ireland, the costs of alcohol harm are of the order of about 1.9% of GDP which tallies with research cited by the World Health Organisation that in high income countries alcohol harm amounts to up 2.5% of GDP. Therefore, for Ireland the cost of alcohol harm would equate to approximately €9.6bn-€12bn annually. In essence, that’s an additional cost of €2,280.50 for each person in the state to foot the bill for alcohol harm.