Plastic carrier bag charge picks up £95m

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The 5p carrier bag charge on large retailers in England, introduced in 2015, has so far raised £95m for good causes, according to information supplied by the Treasury in response to a freedom of information request

The Treasury data for the period from the launch in October 2015 to March 2017 suggests 9bn fewer carrier bags have been distributed since the charge was introduced.

Data from the Department for Environment, Food and Rural Affairs (Defra) shows the seven main retailers (Asda, Marks and Spencer’s, Sainsbury, Tesco, The Co-operative Group, Waitrose and Morrisons) issued around 83% fewer bags (over 6bn bags fewer) in 2016 to 2017 compared to the calendar year 2014.

The 5p charge is not a tax and the money does not go to the government. Retailers are expected to give the proceeds of the scheme to environmental, educational and other good causes, but it is for them to choose what to do and which causes to support.

In the Budget, the Chancellor indicated plans to crackdown on waste from single-use plastic items, such as coffee cups, and announced there will be a call for evidence in early 2018 to decide how a tax or charges could help to achieve this goal.

Almost two-thirds of retailers voluntarily provided additional information on how much they had donated to good causes from the plastic bag charge. These retailers donated over £66m to good causes amounting to 4p for every single-use bag sold by them.

Defra’s data shows 168 retailers donated approximately £33m to local causes chosen by customers or staff; approximately £20m to good causes relating to charity or voluntary sectors, environment and health; and approximately £13m a combination of good causes (including research, education, arts, heritage and sports).

The plastic bag charge is also operated in Scotland and Wales by the devolved governments.

Details of the carrier bag charge are here

Report by Pat Sweet

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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