In recent years, and particularly as a result of the pandemic, the likes of binge drinking and alcoholism is on a steady incline.
That’s having a significant impact on people’s health, and as a result the economy, with more people checking in to private alcohol rehab centres UK wide, as well as using the NHS and putting even more strain on the health service.
But how much is it actually costing the UK economy? We drill down into the details…
The NHS bears a considerable portion of the financial burden associated with alcohol misuse. According to recent estimates, alcohol-related harm costs the NHS around £3.5 billion each year. This figure includes the cost of treating alcohol-related diseases, such as liver cirrhosis, cardiovascular diseases, and various cancers, as well as the expenses related to alcohol-related accidents and injuries.
Alcohol misuse leads to a high number of hospital admissions. In 2019-2020, there were over 350,000 admissions where the primary diagnosis was an alcohol-related condition. These admissions place a significant strain on hospital resources, including emergency services, inpatient care, and specialised treatments for chronic conditions.
Alcohol-related crime and disorder present another substantial cost to the UK economy. Police forces spend considerable resources dealing with incidents linked to alcohol, including domestic violence, public disturbances, and drink-driving offences. The Home Office estimates that alcohol-related crime costs society around £11 billion annually.
The criminal justice system also incurs costs from alcohol misuse. This includes the expenses of processing offenders, legal proceedings, incarceration, and rehabilitation programmes. Additionally, alcohol-related offences can lead to longer-term social costs, such as the impact on victims and communities, which are harder to quantify but equally significant.
Alcohol misuse significantly affects workplace productivity, leading to substantial economic losses. Absenteeism is a common issue, with employees taking time off work due to hangovers, illness, or injuries related to alcohol consumption. Presenteeism, where employees attend work but perform below their capabilities due to the effects of alcohol, also impacts productivity.
A report by the Institute of Alcohol Studies estimates that alcohol-related absenteeism costs the UK economy around £1.7 billion per year. Furthermore, reduced productivity due to impaired performance at work adds an additional £6 billion to the overall cost. These figures highlight the detrimental impact of alcohol on the workforce and the broader economy.
Alcohol misuse often leads to increased demand for social care services. This includes support for families affected by alcohol-related issues, housing services for those rendered homeless due to alcohol dependency, and child protection services. The cost of providing social care to individuals and families impacted by alcohol misuse is estimated to be around £1 billion annually.
Welfare payments also rise as a result of alcohol misuse, with increased claims for disability benefits and other social security payments due to alcohol-related health problems. The broader social implications, such as the impact on children growing up in households with alcohol misuse, further compound these costs.
Beyond the direct costs, alcohol misuse has broader economic implications. These include lost economic output due to premature mortality and reduced participation in the labour market. Alcohol is a significant factor in many cases of early death, reducing the workforce and the overall economic productivity of the nation.
Additionally, alcohol misuse can lead to long-term economic consequences for individuals and families, such as financial instability and reduced quality of life. The ripple effect of these personal economic hardships can be felt across communities and society as a whole.
