Vaping Overtakes Smoking in UK—But Tax Hike Awaits

• Evidence shows that when combined with support, vaping can be an effective quitting tool.
• Programmes that offer free vape kits and guidance can be more helpful than traditional quitting methods.
• The strongest results come from policies that clearly separate youth protection from harm reduction for adults.
• Experts warn the policy must keep pace with the evidence on harm reduction.

From 1 October, the new Vaping Products Duty will come into force, alongside a one‑off increase in tobacco duty.

According to Dr. Marina Murphy, Senior Director of Scientific Affairs at Haypp Group:

“These price hikes will be felt immediately by millions of people.

When the government is actively encouraging smokers to switch through programmes like the ‘Swap to Stop’ scheme, raising the cost of vaping so drastically creates confusion and sends potentially counterproductive signals.”  

The data show that more adults in the UK vape than smoke cigarettes – a historic shift. The data indicates that the majority of those using vapes are smokers who have switched. 

Dr. Murphy comments:

“There is overwhelming evidence that vaping carries far lower health risks than smoking.

Treating these products with the same heavy fiscal hand as cigarettes risks sending the wrong signal and could discourage switching or even push some people back to smoking.” 

Despite this, vape e-liquids will now, for the first time, be subject to a hefty excise tax under the Vaping Products Duty.

The UK has made major progress in cutting smoking over the past decade.

Official figures show adult smoking rates have almost halved, from around 20% in the early 2010s to just over 10% in 2024 – the lowest level on record.

As a result, the UK now sits well below the EU average, where almost one in four adults still smoke. 

It has been steadily narrowing the gap with Sweden, which is widely considered Europe's leading example, with smoking rates consistently at or below 5%. Sweden is frequently characterized as virtually smoke-free. 

Experts warn that this progress has already begun to slow and could lose further momentum. Higher taxes on smoke-free alternatives risks undermining the UK’s clearest public health wins – moving people away from combustible nicotine products. 

According to Dr Murphy, the price rises will be significant – even for consumers who already face some of the highest tobacco prices in Europe. 

“A pack of 20 cigarettes already costs around £16 to £18 in the UK, with premium brands even higher. From October, tobacco duty will rise further.

At the same time, vape e-liquids will be taxed at £2.20 per 10 ml. Once VAT is added, a standard 10 ml bottle could rise to around £6.60 to £6.70.”

The government moved away from earlier proposals for a tiered system based on nicotine strength. Instead, a flat-rate tax will apply, hitting larger refill bottles hardest. For example, a 100ml shortfill that currently costs around £15 could end up costing more than £40 after tax.

To maintain a price advantage for switching, tobacco duty is rising at the same time as the vape tax hits. 

However, this narrowing of the price gap between smoking and vaping comes at a sensitive time.  As that gap closes, smoking may become relatively more financially attractive than intended – just as large numbers of smokers have already moved to less harmful alternatives.

Dr. Murphy comments:

“It’s good for public health that vaping has overtaken smoking. People should not be penalised for choosing a less harmful alternative.”

The effect of the new tax package on behaviour and public health remains to be seen. What is clear, however, is that both smokers and vapers in the UK are facing a significant price hike this autumn.