Benefits rise wiped out by £60 vape tax hike, claimant fumes
Benefits rise wiped out by £60 vape tax hike

A woman who relies on state support says her entire benefits increase has been wiped out by new taxes on vaping, leaving her feeling furious and financially no better off.

Budget Boost and Financial Blow

Following Chancellor Rachel Reeves's Autumn Budget, delivered to the House of Commons on Wednesday, Personal Independence Payment (PIP) and Universal Credit claimant Erica Cartier discovered she would be both winning and losing.

Her Universal Credit payment is set for a 6.3 percent increase, which works out as an extra £63 per month. Combined with her other allowances, she will receive a total of £1,083 in taxpayer support, which includes £380 for rent and £200 for caring for her wheelchair-bound boyfriend full-time.

Her PIP payment will also see a rise, with a 3.8 percent increase adding £11 to her usual middle-rate of £295.

Vaping Habit Eats Up Extra Cash

However, the financial relief was short-lived. Cartier, who spoke to the Sun newspaper, explained that new taxes introduced in the budget target her vaping habit.

She revealed that the price of her vaping juice will increase by £2 per 10ml bottle. As she uses one bottle a day, this adds up to an additional £60 per month in expenses.

"Just as I was cutting down my chain-smoking habit for a cheaper, safer vape, the juices will now cost me an extra £2 a 10ml bottle," she said.

A Zero-Sum Game for Claimant

This means the extra £63 from her Universal Credit uplift will be almost entirely spent on covering the new cost of her vaping, leaving her with virtually no net financial gain.

"It doesn’t sound like much but I get through a 10ml bottle a day costing me an additional £60 a month, so will have already almost spent my extra £63 a month in Universal Credit on new vape juice prices," Cartier stated.

She expressed her frustration, noting that these "luxuries", which also include cigarettes and whisky, help her cope with life alongside a "devastating illness". For this benefits claimant, the budget has ultimately become a balancing act with no real improvement to her disposable income.