Vapers and smokers hit with major price hikes from October as new UK duty kicks in
From 1 October, anyone who smokes or vapes will see a sharp rise in prices as the Government introduces a brand-new Vaping Products Duty alongside a one-off tobacco duty increase.
The changes are designed to keep vaping cheaper than smoking as a “harm reduction” option — but both habits are about to get significantly more expensive.
Cigarettes: prices set to climb again
Jenny Edman, Finance Expert at Northerner, says cigarette prices are already at record highs:
“Today, a 20-pack of cigarettes costs between £16 to £18, with premium brands nearing £18 to £19, due to increased duty and retail pricing.”
From October, the Government is adding a further one-off increase in tobacco duty:
- £2.20 extra per 100 cigarettes
- £2.20 extra per 50g on all other tobacco products, including rolling tobacco
This means smokers will see another noticeable jump on top of already steep prices, with many packs likely to edge even closer to the £20 mark in the coming years.
Vaping: flat-rate duty will more than double some prices
The new Vaping Products Duty will apply from 1 October and will be charged at a flat rate of:
- £2.20 per 10ml of e-liquid
Once VAT is added, a standard 10ml bottle is expected to rise from roughly £3.99 to around £6.60–£6.70.
Larger refill bottles will be hit even harder. A 100ml shortfill that currently costs around £15 is projected to jump to about £41.40 under the new duty.
The Government has moved away from earlier proposals for a “tiered” tax based on nicotine strength. Instead, it is implementing a flat-rate excise duty, meaning all liquids are taxed at the same rate regardless of nicotine content.
Why both taxes are rising at the same time
Ministers say the aim is to ensure vaping remains a cheaper alternative to smoking, as part of a wider “harm reduction” strategy.
Because the new vape duty will push up the cost of e-liquids, the Government is also hiking tobacco duty at the same time to maintain a clear price gap between cigarettes and vapes.
In practice, that means:
- Vaping stays cheaper than smoking, but becomes far more expensive than it is today.
- Smoking becomes even less affordable, with duty rises stacked on top of already high prices.
What this means for smokers and vapers
- Smokers: can expect higher prices per pack, with premium brands already close to £19 and likely to keep rising.
- Vapers: will see some of the biggest percentage increases, especially on larger bottles and shortfills.
- Retailers: will need to update pricing, signage and stock ahead of the 1 October change.
- Consumers: may look to cut down, quit altogether, or bulk-buy before the new duty kicks in.
For anyone who smokes or vapes regularly, October’s changes will be hard to miss — both at the till and in the monthly budget.