The Vaping Products Directive (VPD) comes into effect on 1 October. It seemed ridiculously far away when it was confirmed in late November last year, but time marches on while common sense struggles to keep pace.
There is a lot to hate about this excise-duty increase. For households struggling through a cost-of-living crisis, a £2.64 price rise, including VAT, on 10ml bottles is outrageous. Say what you want about their products, but Supreme PLC, the maker of 88Vape’s £1 e-liquids, could be forced to raise prices to around £3.64, which is a 264% increase.
According to Supreme company filings from a few years ago, the company accounts for as much as one-third of the UK’s total e-liquid sales volume. The popularity and availability of these products in pound shops up and down the country offer a clue as to which socio-economic group will be hit hardest by the increase.
What is the reasoning behind the increase?
The vape excise was announced by then-Chancellor Jeremy Hunt in March 2024, who said its purpose was “to discourage non-smokers from taking up vaping”. Once-time Labour Chancellor Rachel Reeves then confirmed the final flat-rate design in October 2024, and Parliament put it into law through the Finance Act 2026, which received Royal Assent on 18 March 2026.
Budget 2025 documents state that the price rise:
“aims to reduce the affordability and appeal of vaping products, particularly among young people and non-smokers, while maintaining the financial incentive for smokers to switch to less harmful alternatives.”
This kind of off-the-hook, dreamer policy has become a hallmark of Westminster in recent years. While there has been much talk of funnelling the additional tax into public services such as the NHS, the issue is far more complex. Cigarettes are also facing a price increase, but only by £2.20 per 100 cigarettes. The government’s fatal mistake is narrowing the affordability gap between vapes and cigarettes.
While saving money is not the primary reason people in the UK switch from cigarettes to vaping, it is cited as an important factor by one in three vapers. The reality is that £1 e-liquids face a 264% price increase, while £3.99 bottles of 10ml e-liquid will rise by around 66%. At the same time, cigarettes will see an increase of around 4%. Vaping will still be cheaper, but a second-order consequence of this policy will be to make cigarettes more appealing to current vapers.
Can vapers DIY their way out of this mess?
When I first heard the news, I assumed it might be time to start mixing my own e-liquid again. However, the government has thought of that too. Section 115 of the Finance Act 2026 sets a single rate of £2.20 per 10ml of vaping liquid, meaning a 100ml 0mg shortfill and 100ml of high-nicotine e-liquid are treated exactly the same: both attract £22 in duty before VAT.
So, in other words, no.
Who are the winners and losers?
According to ONS data, food and non-alcoholic drink prices have risen by around 35–40% over the past five years. At the same time, real total pay growth has been modest, with some data suggesting an average increase of around 0.9% in recent years. People do not need to be told this; they feel it every day.
While the government may believe it is “thinking of the children” or “saving the NHS”, this looks more like a tax raid on people who are already struggling. The strangest part is that officials will beak off about how “addictive” nicotine is, then cynically exploit that very dependence by increasing the cost of consuming nicotine for people they portray as unable to stop consuming nicotine.
This tax raid might be less egregious if its purpose were not so blatant. Total public spending rose from around 40% of GDP before the pandemic to roughly 44–45%. COVID, the energy crisis, inflation and debt-interest costs have all played a role, while welfare spending has ballooned to around £330 billion, an increase of approximately 36% in five years.
The biggest concern is that making vaping more expensive could drive some vapers back to cigarettes, and not necessarily the taxed kind. Estimates vary widely, but some suggest that between 12% and 32.3% of cigarettes consumed in the UK are illicit. Sadly, the government’s short-sighted policy could push that figure higher.
