Smokers and Vapers Brace for Significant Price Increases
Everyone who smokes or vapes will face substantially higher costs when new regulations come into force later this year. The government is implementing both a new Vaping Products Duty and a one-off increase in tobacco duty, both taking effect from October 1, 2026.
Specific Cost Increases Revealed
Jenny Edman, Finance Expert at Northerner, provided detailed projections: "Today, a 20-pack of cigarettes costs between £16 to £18, with premium brands nearing £18 to £19. This October will see a one-off increase of £2.20 per 100 cigarettes and £2.20 per 50g on all other tobacco products, including rolling tobacco."
The Vaping Products Duty introduces a tax of £2.20 per 10ml of e-liquid. When combined with VAT, this could raise the price of a standard 10ml bottle to around £6.60–£6.70, up from roughly £3.99 today. Larger refill bottles will likely see even greater price increases.
Government Strategy Behind the Changes
The government has moved away from earlier proposals for a "tiered" tax based on nicotine strength, instead implementing a flat-rate excise duty. This means a 100ml shortfill that currently costs £15 will go up to £41.40.
To ensure vaping remains a cheaper alternative to smoking as a harm reduction incentive, the government is hiking tobacco prices simultaneously with the vape tax. This approach aims to end what officials call "pocket-money price" vapes that have become accessible to minors.
The measures are tied to the Tobacco and Vapes Bill, which has been moving through Parliament with cross-party support. The bill includes:
- A historic ban on tobacco sales to anyone born on or after January 1, 2009
- Powers to regulate packaging, appearance, contents and flavour of tobacco and vaping products
- Authority to designate places or vehicles as vape-free
Additional Tobacco Price Mechanisms
The one-off increase occurs alongside existing pricing mechanisms:
- The "Escalator": Standard annual increases typically follow the RPI (Retail Price Index) + 2% formula
- Hand-Rolling Tobacco: Often faces even steeper "one-off" adjustments to close the price gap with pre-made cigarettes
Revenue Allocation and Further Regulations
The revenue generated from these taxes is estimated at over £500 million annually by 2028, earmarked for public services including the NHS and local "Stop Smoking" initiatives.
The government is also considering additional measures. Health minister Sharon Hodgson told the Commons: "These regulations could include banning filters in the future, as well as regulating their packaging, advertising and display. The evidence on filters including their direct health impact is still emerging, and no decision has been made on the use of these powers."
Health and Environmental Concerns
Labour MP Jim Dickson, a former smoker, called for an outright ban on filters: "I tabled an amendment that would have introduced a ban on all cigarette filters, regardless of whether they contain plastic. This was tabled in recognition of the fact that there are no health benefits at all to cigarette filters."
Mr Dickson cited Anglia Ruskin University research finding that littered cigarette filters leach toxic chemicals into soils and waterways regardless of their composition.
Hazel Cheeseman, chief executive of Action on Smoking and Health (Ash), described filters as "a fraud" that "do nothing to protect health while making smoking more appealing and causing significant environmental harm."
Broader Context and Timeline
These changes follow the ban on disposable vapes that took effect in June 2025. The Tobacco and Vapes Bill has cleared both Houses of Parliament, with both Commons and Lords needing to agree on its final draft before it becomes law.
Ms Cheeseman concluded: "This 'once-in-a-generation' Bill will be a totemic moment for public health, ensuring that the children of today can never be sold tobacco. The wider provisions will also allow the Government to combat youth vaping, while ensuring adult smokers can still switch to the less harmful product."
