Skip to main content

Announcement of methodological changes to Statistics on Alcohol: England, 2012 National statistic

Following a public consultation on the Lifestyle compendia publications in 2011, there are a number of methodological issues to bring to the attention of users in relation to the 2012 report, due for publication on 31 May 2012. These relate to the affordability of alcohol index and estimates of alcohol related hospital admissions.


Affordability of alcohol index

The Health and Social Care Information Centre (HSCIC) has routinely published a series of indices derived from Office for National Statistics (ONS) data in its Statistics on Alcohol: England reports. These include the alcohol price index (API), retail price index (RPI), relative alcohol price index (defined as API / RPI), real households’ disposal income (RHDI) and the affordability of alcohol index (defined as RHDI / relative price index).

Since the publication of Statistics on Alcohol: England 2010, the HSCIC has worked with key customers to investigate the scope for making methodological improvements to the way the affordability of alcohol index is derived. The Institute of Alcohol Studies (IAS) produced a research paper proposing a number of adjustments to the affordability index produced by the HSCIC.

One of these proposed adjustments was implemented in the Statistics on Alcohol: England, 2011 report and as a result, the revised Real Households’ Disposable Income (RHDI) index now tracks, exclusively, changes in real disposable income per capita. Previously, the RHDI index tracked changes in the total disposable income of all households and was not a per capita basis.

This had the implication that changes in the RHDI index over time were, in part, due to changes in the size of the population and not exclusively due to changes in real disposable income per capita. The RHDI index feeds into the affordability of alcohol index, and so this was also affected.

The adjustment was carried out using ONS mid-year population estimates of the adult population aged 18 and over, and was applied to all years in the index (1980 onwards). The adjusted RHDI index was then carried forward to produce an adjusted affordability of alcohol index. Further information on the method is contained in Appendix A of the 2011 report, and will also be included in Appendix A of the 2012 report

The unadjusted RHDI index and the unadjusted affordability of alcohol index (as used in Statistics on Alcohol: England 2010 and prior publications) are presented alongside the revised indices for comparability purposes in the 2011 report (Table 2.8 and Figure 2.6).

Further feedback received in relation to the method underpinning the alcohol affordability index is described in the outcomes paper. Feedback was received on the particular revision introduced in the 2011 report described above and also on the remaining proposed amendments contained within the IAS research paper.

All responses received were in favour of the adjustment made in the 2011 report to calculate on a per capita basis. We intend to continue performing this adjustment going forwards. In addition, further information has been included in the report to explain and describe the affordability index as well as how it should and should not be used.

Further work will be necessary in the future to consider whether further amendments to the index are required. This will include continuing to investigate whether an alternative source of data is more appropriate to measure disposable income, or whether to apply the adjustments proposed by IAS to the existing RHDI index used in the calculations. From initial discussions with ONS it appears the adjustments proposed by IAS to the existing RHDI index would be beneficial. An alternative source of data on household disposable income which may not have the limitations of the existing RHDI index was also identified.

We will aim to examine these alternatives more closely in the future, subject to required resources being available. Meantime however, it should be noted that, as in the 2011 report, the method underpinning the affordability index should be regarded as an interim measure that may be refined if deemed necessary upon completion of further enquiry. (Appendix F of the publication will provide further details of the responses received via the public user consultation.)



Last edited: 30 October 2023 10:26 am