Supermarket bills could rise by £60 after new recycling law

Customers at supermarkets such as Tesco, Sainsbury’s, Lidl and Aldi could see their annual bills rise after the new recycling law was introduced.

Supermarket bills could rise again as retailers are forced to introduce new recycling procedures.

Supermarkets such as Asda, Aldi, Tesco, Sainsbury’s, Morrisons and Lidl fear the new recycling law could raise household annual food bills by £60, potentially passing on the higher prices to consumers.

The recycling law won’t be implemented right away, but with the cost-of-living crisis, the spiraling cost of the shopping cart is currently on shoppers’ minds.

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Here’s everything you need to know.

Prices at the supermarket checkout could rise after a new law tells retailers to change packaging. (Credit: Getty Images)

What is the new recycling law?

From 2024, large retailers and supermarkets will have to pay to recycle every part of their packaging.

Ministers called the plan “Extended Producer Responsibility” (EPR).

There are fears that the new law, which is a mandatory recycling tax, will cause costs to be reflected in the price of items.

If all the costs were passed on to the consumer, the equivalent of 12 days worth of shopping could be added to the annual bill, experts predict.

When will the new law be implemented?

The law will enter into force in 2024.

Two years on, the lingering effects of the cost-of-living crisis could mean trade bills remain high, with a potential surcharge pushing them further.

What about the new recycling law?

Critics of the new law argue that industry experts should have a say in how policy is implemented.

Speaking to The Sun, Food and Drink Federation chief executive Karen Betts warned of rising trade bills and urged lawmakers to rethink the implementation of the policy amid a cost-of-living crisis.

He said: “So the distressed households and the poor households are living to make ends meet every day, is that right?

“Efficient, efficient, new recycling systems don’t cost so much, and we’re all paying Council Tax on top of that.

“The impact of EPR and other recycling policies will force prices up.

“Although they have good intentions behind them, they are contrived.”

He added: “The next prime minister’s priority will be to address rising inflation and the cost of living.

“They need to look at whether the government’s actions are fueling inflation.”

Defending the new tax, a spokesman for the Department for Environment, Food and Rural Affairs (Defra) said: “We do not recognize these figures. Taxpayers pay to get rid of packaging waste through their tax bills.

“Companies that put packaging on the market under EPR pay instead. If they use less packaging or make it easier to recycle, that will also reduce their costs.”