Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Accepted
The Department's alcohol harm cost calculations are outdated, hindering effective policy decisions.
Recommendation
The NAO’s report shows that drinking patterns have changed considerably since 2012 when the cost of alcohol related harms were last calculated, with young people generally drinking less.21 The Department told us that we had also seen more liver disease over that period.22 We suggested that, 11 years on and given the change in underlying assumptions, the Department might want to update its calculation of the cost of harm. It would be helpful if decision makers had access to the exact costs of alcohol to the NHS (and more widely) to support effective decision making around an appropriate response. As overall owner for alcohol policy, it would be for the Department to coordinate a cross government efforts to do this. 16 Q 115 17 Qq 1, 3, 6, 113–118 18 Qq 5, 23, 73; Office for National Statistics, Nature of crime: violence, (Table 9a) 3 September 2020 19 C&AG’s Report, paras 1.5 & 1.11, Figure 2 20 Alcohol dependence prevalence in England - GOV.UK (www.gov.uk). The prevalence, trends and amenability to treatment report published by the University of Sheffield provides analysis and information on the methodology and sources of these estimates. 21 C&AG’s Report, para 1.4 and Figure 1 22 Q87; C&AG’s Report, para 1.5 12 Alcohol treatment services 2 Treatment services Impacts of funding uncertainty on commissioning alcohol treatment services
Government Response Summary
The government agrees and has updated the 2012 estimated cost of alcohol to society to £25 billion in 2021 prices. It has also initiated a longer-term project to fully update this estimate, beginning with a review of evidence on costs to the NHS and labour market productivity.
Government Response
Accepted
HM Government
Accepted
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 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. 2.3 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.