The London pub where prices jump £2 after 10pm

Dynamic pricing means a pint at O'Neill's in Soho can cost up to £9.40 after 22:00

A central London pub is charging customers an extra £2 a pint after 22:00.

Before that time, patrons of O'Neill's on Wardour Street in Soho pay £7.40 for certain draught beers, with the same drink costing £9.40 after the cut-off.

Mitchells & Butlers, the pub group that owns the venue, said the policy reflected a request from the police and local council "that we increase prices after 10pm to a level generally in line with the late-night market".

Westminster Council said it "does not require businesses to charge different prices for alcohol at different times when we grant licences" but added that in 2022 it insisted venues increase security after 22:00 and serve alcohol in plastic glasses.

A council spokesperson added pricing was "entirely up to them".

Last year, the pub group that owns the Slug & Lettuce and Yates's revealed it would charge 20p more per pint during peak hours due to cost increases.

Dynamic pricing has faced greater scrutiny following skyrocketing ticket costs for Oasis's UK reunion gigs, although the American leg of the tour avoided using the system.

In September, Valencia Football Club said it would use it for home matches.

Allen Simpson, deputy chief executive of UK Hospitality, said that, due to inflation, businesses must sell goods at 124% of the price charged in 2019 to make the same amount.

He said: "It costs more to serve a pint after 22:00 than before.

"Obviously, I can't comment on an individual premises' pricing but businesses have to charge an amount that means they can make a profit and survive.

"Costs are rising for bars, for example with the National Insurance contributions going up in the Budget and business rates. It's tough out there."

The price of a pint has not peaked yet, businesses have warned

Mitchells & Butlers, the pub group that operates O'Neill's, said the policy had been in place for two years.

A spokesperson added: “Most hospitality businesses and retailers deploy a form of dynamic pricing, but this means that prices can both rise as well as fall through tactical discounts being offered in the form of time-limited promotions and fixed-price menus.

"Dynamic pricing varies on a site-by-site basis as it reflects the local market conditions, but temporary price increases tend to reflect the need to offset additional costs, such as at times when door security is required.”