A licensing scheme for retailers to sell vape, tobacco, and nicotine products in England, Wales and Northern Ireland may be introduced under new powers included in the Tobacco & Vapes Bill.

While the legislation has not yet been passed, the UK Vaping Industry Association has welcomed the news of a licensing scheme as “a victory for law-abiding vape businesses” and a step towards stopping “rogue traders”.

The Bill, which had previously been left behind before the election of the Labour government, carries over other elements of similar plans from the last Conservative government.

Also included in the Bill is a ban of vape advertising and sponsorship, restriction of flavours, display and packaging of all types of vapes. The Bill also pledges to regulate vaping more tightly with £200 on-the-spot fines and tougher enforcement, as well as extending the indoor smoking ban to certain outdoor settings.

Subject to consultation, the government is considering extending restrictions in places that are currently smoke-free to also become vape-free, especially in areas where there are children and young adults.   

Disposable vapes are already due to be banned from 1 June 2025 under separate environmental legislation.   

Health and Social Care secretary Wes Streeting said: “This government is taking bold action to create the first smoke-free generation, clamp down on kids getting hooked on nicotine through vapes, and protect children and vulnerable people from the harms of second-hand smoke. 

“This historic legislation will save thousands of lives and protect the NHS. By building a healthy society, we will also help to build a healthy economy, with fewer people off work sick.”

Disposable vapes to be banned from June 2025

Industry responses

UKVIA director general John Dunne said in order for the proposed licensing scheme within the Bill to be successful, vape distributors must be included in the plans, and fines of £200 must be “much higher” to prevent rogue traders.

He continued: “We have been consistently calling on successive governments to introduce a robust and effective industry licensing scheme, backed up by fines of at least £10,000 for retailers and £100,000 for distributors who trade illegally when it comes to underage and illicit vape sales. The scheme we have developed and recommended is designed to generate upwards of £50m per year to support a highly resourced national Trading Standards enforcement programme. 

“However, I am delighted that vape licensing is now firmly on the policy agenda, so that youth and illicit vaping can successfully be tackled and the complete focus of the category can once more return to helping adult smokers quit. We stand ready to work closely with the government to ensure such a scheme is fit for purpose.”

Evapo CEO Andrej Kuttruf also expressed a need for larger fines, adding that the £200 cap is “simply not good enough”.

“Evapo believes that the vaping licensing scheme should take a page out of the book of the alcohol licensing scheme, where non-compliance fines can be much higher and there are far fewer rogue traders,” he said.

Asli Ertonguc, head of BAT UK and Western Europe, said: “A retail licence works for alcohol, and we believe it will work for vaping. 

“However, we are disappointed at the level of fines the government appears set to implement for those caught breaking the law as it is unlikely to deter unscrupulous retailers. Prioritising enforcement, be it through more resource and harsher penalties, is the only way to ensure that any regulatory change has the desired impact.”

Other industry bodies are also casting doubt on the licensing scheme being effective if trading standards is under-resourced.

UKVIA slams exclusion from Tobacco & Vapes Bill meet

Mark Oates, founder of campaign group We Vape, said: “Whilst we welcome the government’s Bill proposals to introduce a vape licensing scheme, which we know will tackle rogue traders, they are yet to state if the money will go directly to trading standards so they can enforce the law.”

Oates also labelled the on-the-spot fine cap of £200 as “pathetic”, “considering the money that can be made from the black market”.

“Penalties should begin at £1000, rising to £10,000 for repeat offenders before they are shut down,” he said.

Marcus Saxton, chair of the Independent British Vape Trade Association (IBVTA), warned of “regulatory overkill” within the Bill, hampering vaping devices’ role in being a “leading quit aid”.

“Excessive restrictions on the types of products that our members can provide may reduce the products’ appeal,” he added. “Even worse, they may contribute to continued misperceptions about the harm of vaping relative to tobacco smoking. Any reference to potential powers to restrict flavours is very worrying, as it threatens the government’s own goal of the UK becoming smoke free by 2030.”

Markus Lindblad, Nicotine Retail Expert from Haypp.com, said: “This proposed scheme could finally bring some law and order to what has been a wild west marketplace. The absence of a licensing system in the UK has encouraged a wild west type environment where almost anyone can set themselves up as a vape shop. This has not only created challenges for responsible retailers, it has greatly increased the risks of underage vape use and untested products hitting the markets.”

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