Shoppers getting to grips with ever-increasing food prices could see their bills rockets by another £60 a year, thanks to new recycling taxes due to be dumped on businesses, according to a group which represents the food and drink industry.
New laws forcing companies to pay to recycle every bit of their packaging are due to come into force in 2024, but The Food and Drink Federation has called on the Government to shelve the proposals for the time being. Karen Betts, CEO of the Food and Drink Federation told The Sun the plans would "cost shoppers more at the tills" and hitting the brakes would be an "easy win" for consumers already facing rising bills as inflation soars.
Consumers who shop at Asda, Aldi, Tesco, Lidl, Sainsbury’s and Morrisons could see a rise of £5 a month, due to the new recycling laws, which will result in companies being made to pay to recycle every bit of packaging properly. If all the costs were passed on to customers, it would add the cost of another 12 days of food and drink onto struggling households during a major cost of living crisis, according to Ms Betts, who is calling on the Government to pause their plans to bring in "Extended Producer Responsibility".
Read more: Supermarkets to take part in trial that could see return of cash for recycling pop bottles
"With households already hard-pressed, and low-income households living day by day to make ends meet, is this right?" she said. "Efficient, effective, new recycling systems don’t need to cost this much, on top of what we all pay in council tax already. The effect of EPR and other recycling policies will be to force up prices. Despite the good intentions behind them, they are ill-thought out. The priority for the next Prime Minister will be to address soaring inflation and the cost of living. They must look at whether Government’s own actions are, in fact, adding to inflation."
Food bills are already soaring, with some foods such as cereal, mushrooms and cheese set to soar by around 20%. Ministers have already ditched a string of red tape rules to help ease the cost of living crisis, including a ban on buy one get one free deals over fears it would hike prices.
A Defra spokesman said: “We don’t recognise these figures. Taxpayers already pay to get rid of packaging waste through their council tax bills. Under EPR, the companies who put packaging on the market pay instead. If they use less packaging, or make it easier to recycle, it will cost them less too.”
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