Supermarket bills could rise by £60 after new recycling law

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Customers of supermarkets like Tesco, Sainsbury’s, Lidl and Aldi could increase their annual bills after the passage of a new recycling law

Supermarket bills could rise again as retailers are forced to adopt new recycling practices.

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The new recycling law could see supermarkets including Asda, Aldi, Tesco, Sainsbury’s, Morrisons and Lidl pass the increased costs on to customers, with fears it could add £60 to households’ annual grocery bills.

The recycling law will not be implemented immediately, but with the cost of living crisis, shoppers are currently realizing the rising cost of a shopping basket.

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Here’s everything you need to know.

Prices could soar at the supermarket checkout after retailers were urged to change packaging under newly introduced law. (Image credit: Getty Images)

What is the new recycling law?

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

Ministers have dubbed the plan “Extender Producer Responsibility” (EPR).

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There are fears that the new law, which is essentially a mandatory tax on recycled items, will result in the cost being reflected in the price of the items.

Experts have predicted that if all costs are passed on to the customer, the value of 12 shopping days could be added to the financial statement.

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When is the new law coming?

The law will come into force in 2024.

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Though two years away, the lingering impact of the cost-of-living crisis could keep grocery bills high, with these potential additional costs driving them even higher.

What was said about the new recycling law?

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Critics of the new law have argued that industry professionals should have a say in how the directive is implemented.

Speaking to The SunKaren Betts, CEO of the Food and Drink Federation, warned of the surge in grocery bills and encouraged lawmakers to reconsider implementing this policy amid a cost-of-living crisis.

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She said: “Is that right when households are already under pressure and low-income households are living day to day to make ends meet?

“Efficient, effective new recycling systems don’t have to cost that much on top of what we all already pay in council taxes.

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“The effect of EPR and other recycling measures will be to drive up prices.

“Despite the good intentions behind them, they are poorly thought out.”

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She added: “Tackling rising inflation and the cost of living will be the next prime minister’s priority.

“They need to examine whether the government’s own actions are actually contributing to inflation.”

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

“With the EPR, the companies that bring the packaging to the market pay instead. If they use less packaging or make recycling easier, it will also cost them less.”

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