From 1 October, UK households will no longer pay 5% VAT on electricity, which the government estimates will save an average £45 a year. Tobacco and vape duties also rise; Ofgem’s price-cap figure for an average home is £1,723 a year for October–December, up £60.
A new duty of £2.20 per 10ml will apply to vaping liquid, whether or not it contains nicotine. A £4 bottle containing 10ml will cost £6.64 after VAT. Tobacco duty rises by £2.20 per 100 cigarettes—44p on a pack of 20—and by £2.20 per 50g of rolling tobacco. The government says the increases are intended to keep cigarettes substantially more expensive than vaping products.
Ofgem will announce the price cap for January–March 2027 in November. EDF has forecast a 30% rise to £2,098, £375 above the October rate; this is a forecast, not an announced cap. The government is reportedly considering removing VAT from gas bills too, which could cut average energy bills by £40. Any such change would likely be announced at the end-of-October Budget.
