Alcohol Prices Rise From Next Week As New Duty Rates Come In

29th January 2025

The new Alcohol Duty rates, draught rates and Small Producer Relief discounts will take effect on 1 February 2025.

Most alcohol prices will rise next week, on 1st February, as new duty rates on wine and spirits come into force, linked to their (abv).

Wine with a higher abv will see the biggest price increase, with the duty on a 14.5% wine rising by 20%, or 54p on average.

However, duties on 11.5% wine will fall 5%. "There are no winners under the UK's punishing alcohol tax regime - higher duty rates mean people buy less which results in reduced income to the Exchequer, businesses are being squeezed and consumers have to pay more," Miles Beale, CEO of the Wine and Spirit Trade Association said.
mpact on individuals, households and families
This measure will have an indirect impact on individuals who consume alcoholic products if the changes on duty rates are passed on to individuals through higher or lower prices for these products.

Assuming 100% pass through to prices wherever alcohol is purchased, from 1 February 2025 the tax on a typical:

4% alcohol by volume pint of draught beer will be 1 pence lower
4.58% alcohol by volume pint of draught beer (average strength) will be 1 pence lower
4% alcohol by volume 500ml bottle of non-draught beer will be 2 pence higher
5% alcohol by volume pint of draught cider will be 1 pence lower
5% alcohol by volume 500ml bottle of non-draught cider will be 1 pence higher
40% alcohol by volume 25ml serving of whisky will be 1 pence higher
5.4% alcohol by volume 250ml can of spirits-based ready to drink will be 1 pence higher
11% alcohol by volume 250ml glass of still wine will be 3 pence higher
11.5% alcohol by volume 250ml glass of still wine will be 5 pence lower
13% alcohol by volume 250ml glass of still wine will be 8 pence higher
The end of the wine easement will cause an additional duty increase for wines 12.5% to 14.5% alcohol by volume and a decrease for wines 11.5% to 12.4% alcohol by volume. With the example of the 8 pence increase for a 13% alcohol by volume 250ml glass of still wine — 4 pence of the increase is due to the end of the wine easement, 4 pence is due to the Retail Price Index uprating.

Individuals who consume stronger alcoholic products may pay more through the revised Alcohol Duty rates.

Individuals who consume draught alcoholic products at on-trade venues (such as pubs) may pay less due to the draught rates being lower than the non-draught Alcohol Duty rates.

These measures are not expected to impact on family formation, stability or breakdown.

Customer experience of engaging and interacting with HMRC is expected to remain the same, as there will be no changes in the way duty is collected.