As part of the Spring budget, Chancellor Jeremy Hunt announced that tobacco prices will rise from 6pm on 15th March 2023, while the cost of e-cigarettes will not be affected.
Cigarette prices rise by nearly 15%
The Spring budget sees the cigarette levy rise by 12.7% in line with the Retail Price Index (RPI) plus an additional 2%, for a steep 14.7% increase which went into effect shortly after the budget was released.
The Office for National Statistics puts the average price of a 20 pack of cigarettes at £12.84, meaning smokers have seen this price rise to an eyewatering £14.73 overnight.
Hand-rolling tobacco has seen an even larger increase of RPI plus 6%, for an overall increase of 18.7%.
Why are cigarette prices rising?
While smokers are used to the cost of tobacco increasing every year, this increase in combination with the general cost of living increase will definitely be felt by many of the current 6.6 million smokers in the UK.
However, this increased cost has been implemented as part of a larger plan to discourage smokers from continuing with the habit in a bid to meet the Government’s smokefree 2030 ambitions.
It has been found that reducing the affordability of tobacco products is the most effective way to reduce smoking prevalence, and as the prices increase so does the potential to save lives.
This target aims to have smoking rates drop below 5% of the UK population by the year 2030, and it is hoped that the frequent price increases will play a part in achieving this goal. Something that is unfortunately missing from the budget is the funding for tobacco control and smoking cessation services that are needed to achieve the smokefree 2030 goal.
In the recent Khan Review, which was designed to advise the Government ahead of the new tobacco control plan, Khan recommended additional funding of £125 million per year and an ambitious new strategy would be needed. Without this additional funding Cancer Research UK estimates that the smokefree 2030 goal would not actually be achieved until 2039.
Will vape prices rise too?
Although there has been reports that the Department of Health and Social Care were pushing for a new tax on disposable vapes to be included in the budget, the Chancellor confirmed earlier in the week that he had no plans to include this in today’s ‘slimmed down’ budget, with a source within the Treasury commenting:
“Department of Health officials are keen, but it’s not going to happen.”
This has been substantiated and there will not be a new tax levy applied to any vaping products, including disposable vapes.
This is fantastic news not only for current vapers, but also for smokers who are going to be affected by the significant price increase of tobacco. Vaping has always been cheaper than smoking, but over the years the savings that can be made by making the switch to vaping are becoming more substantial.
How much can you save by switching from smoking to vaping?
How much money you could save by making the switch from smoking to vaping will vary from person to person depending on a number of factors. For example, how many cigarettes you would usually smoke a day and which type of e-cigarette you decide to start using. However, research from University College London found that those making the switch could save on average £780 per year, and with the increased price of tobacco products since then it is likely that number has gone up!
While the cost of cigarettes increases year on year, there price of vaping has remained consistent, with e-liquids and coils or pods being the only cost after the initial purchase of the device and costing a fraction of a packet of cigarettes.
You can read more about how making the switch to vaping could save you money in our blog post ‘Is vaping really cheaper than smoking?’
Why make the switch to vaping?
Not only can you save money by transitioning to using an e-cigarette, but it is also a much less harmful alternative to smoking and an effective stop smoking aid.
The Office for Health Improvement and Disparities have found that vaping is at least 95% less harmful than smoking. This is because e-cigarettes do not contain the countless toxic chemicals that are produced when tobacco is burnt such as carbon monoxide and arsenic. Using an e-cigarette as an alternative nicotine delivery system allows you to manage your nicotine cravings as you make a stop smoking attempt, as well as addressing the physical habit of smoking. Our post ‘The effects of smoking on the body’ delves deeper into all of the ways that smoking can cause damage, if you need a bit more encouragement in making a stop smoking attempt.
Not only is vaping an effective stop smoking aid, but it has actually been found to be twice as effective as common nicotine replacement therapies like nicotine patches and gum, making users more likely to achieve a successful quit. We take a closer look at this review in our post ‘E-cigarettes proven to be twice as effective as other NRTs’.
Will heated tobacco products be affected by the increase?
As the tobacco sticks used in heated tobacco products are still a form of tobacco they will also be affected by the excise duty increase of tobacco, as laid out in the changes to tobacco duty rates. This means that those who use a heat-not-burn device like IQOS will notice the price of their tobacco sticks have increased since the announcement.
If you are considering making the switch from smoking to vaping why not pop in to your local Evapo store or reach out to our Customer Service team for advice and recommendations.
At a glance
- The price of a pack of cigarettes has risen by 14.7% as part of the Spring budget
- E-cigarette have not been affected by the price increase even after calls for a new tax levy on disposable vapes
- Research has found that the average smoker could save £780 per year by switching from smoking to vaping
Sources
Spring budget 2023 15/03/2023
gov.uk 15/03/2023
pubmed.gov 05/2012
gov.uk 09/06/2022
cancerresearchuk.org 12/2022
ucl.ac.uk 26/06/2019
gov.uk 29/09/2022
cochrane.org 17/11/2022
gov.uk 15/03/2023
