New research: Bold action on alcohol will boost the economy

October 2025 | 9 minutes

A new study by independent think tank, the Institute for Public Policy Research (IPPR), funded by Alcohol Change UK, shows the negative impact that alcohol harm is having on the UK economy.

A new study by independent think tank, the Institute for Public Policy Research (IPPR), funded by Alcohol Change UK, shows the negative impact that alcohol harm is having on the UK economy.

Millions of us experience health issues caused by alcohol, from headaches, poor sleep and anxiety to injuries and chronic illness. Many of the everyday health impacts of alcohol, like hangovers, are so normalised that it can be hard for us to recognise that we’re experiencing sickness that has been caused by a product.

The fact that alcohol is often the main attraction at work events and when socialising with colleagues can make this even harder, especially if we’re trying to cut back.

That’s why we commissioned researchers at the IPPR to investigate the impact of alcohol on the health of the UK’s workforce and how this impacts the health of our workplaces. The report, Taking stock: counting the economic costs of alcohol harm, analyses newly available data and makes the case for urgent, coordinated action to tackle alcohol harm. In doing so, we can create healthier, more productive workplaces.

Key findings

  • The negative impact of alcohol at work is widespread, with almost one in three UK workers (31%) calling in sick in the past year after drinking with colleagues or at work-related events. One in five (20%) said they had said something they regretted while drinking alcohol with colleagues or at a work event.

“Alcohol poses a significant threat to the UK’s economic performance, driven not only by its contribution to the onset of chronic illness and workforce withdrawal but also, as noted above, by its impact on workforce productivity”

- IPPR Taking Stock report 

Overcoming this productivity blocker

Alcohol harm is preventable. In our work supporting people to understand how alcohol may be impacting them, and to change their drinking habits, many tell us about the positive impact cutting down has on wellbeing, energy and productivity. But we also hear that living and working in environments in which alcohol takes centre stage makes their efforts much harder.

With a strong evidence base, the IPPR/report also highlights the opportunities facing Government and employers to drive down alcohol harm and reduce its impact on the nation’s health and economy, including:

  • National policies that target the availability of cheap alcohol, such as minimum unit pricing and alcohol duty, are likely to be the most effective to reduce harm.
  • Our workplaces can lead the way with clear policies, systems and practices that raise awareness of the impact of alcohol on health and wellbeing, create inclusive environments where alcohol isn’t the main attraction, identify problems with alcohol early and support staff who are struggling. The report shows that UK workers want their employers to help reduce alcohol harm and create healthier workplaces.

There is strong evidence from across the world about what works. We need to intervene early, embedding and properly resourcing alcohol advice, support and treatment in our neighbourhoods and workplaces. The Government can tackle the rise of cheap, strong alcohol by introducing minimum unit pricing in England. We can insist that the economic costs of alcohol harm are covered by the alcohol producers by reintroducing the alcohol duty escalator (while supporting pubs, bars and restaurants). And we can make sure we are being told the truth about the impact alcohol is having on our health by properly regulating alcohol labelling and marketing.

This report provides strong evidence that preventing alcohol harm is good for the economy, and that acting now on multiple fronts will lead to a healthier, more prosperous UK.

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