Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Accepted
Undertake work to improve understanding of up-to-date costs of alcohol harm to society
Conclusion
The Department for Health and Social Care, as the lead department, does not have sufficient understanding of total cost of alcohol harm. The harms to individuals and society that alcohol misuse can cause are well-known. Alcohol is linked to over 100 illnesses, can drive mental disorder, self-harm and suicide, and is a major cause of preventable death. The Office for National Statistics reports that in 2019–20 it was linked to 42% of all violent crime, up from 40% the previous year. Moreover, alcohol does most harm in the most deprived communities. Drinking patterns are also changing with the young generally drinking less and older people drinking more. Based on analysis dating back to 2012, the Department put the annual cost of alcohol harm to the NHS at £3.5 billion, and to wider society at around £21 billion (or around £25 billion adjusted for inflation). This analysis is over a decade out of date, and we are concerned that these estimates may not reflect the full scale of harm. The Department’s understanding of the prevalence of dependency also dates back to 2018–19. As overall owner for alcohol policy, it is for the Department to coordinate a cross-government effort to understand how and where costs are rising to inform an effective response. Recommendation 2: The Department should undertake the work necessary to improve its understanding of the up-to-date costs of alcohol harm to the NHS and wider society.
Government Response Summary
The government agreed and stated the recommendation is implemented, having updated the 2012 alcohol harm cost estimate for inflation to £25 billion in 2021 prices. It has also initiated an additional, longer-term project to fully update the estimate, beginning with a review of evidence on costs to the NHS and labour market.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The annual cost of alcohol to society was estimated to be £21 billion in 2012. The department has updated this estimate to reflect inflation. In 2021 prices, the cost of alcohol to society is estimated at £25 billion. The department has initiated an additional, longer-term piece of work to update the estimate of the cost of alcohol to society. The department has begun a review of existing evidence, starting with costs to the NHS and labour market productivity.