Supermarket shoppers in Lincoln slam new packaging costs which have been dubbed a ‘grocery tax’

Shoppers in Lincoln have criticised a new 'grocery tax' introduced at the start of the year, which could increase annual grocery bills by up to £56.

The green levy, implemented by the Labour government, charges retailers and manufacturers per tonne of packaging they use to reduce waste and support the UK’s net zero targets.

Some of the largest retailers, including Tesco, Asda, Sainsbury's, Morrisons, Lidl, Aldi, Marks & Spencer, Waitrose, Iceland and Farmfoods are expected to be affected.

The Department for Environment, Food & Rural Affairs (DEFRA) described the scheme - officially known as Extended Producer Responsibility - as a "vital step" for packaging reforms, claiming it will create 21,000 jobs and drive more than £10 billion of investment in the recycling sector over the next decade.

However, with families still struggling due to the ongoing cost-of-living crisis, some fear the impact of the additional burden it could place on household budgets.

Jason, who had just finished shopping at Lidl on Deacon Road, shared his concerns about the potential impact on lower-income families.

"I think it's going to put pressure on these families, particularly with cuts to benefits where they can't get that support," he said.

"I've been in the benefits system myself; I know what it's like. It's not very easy—it’s not easy to get out, and it's not easy to support yourself when you don't have anything coming in."

"I think people will feel the pinch," he added.

Meanwhile, outside Tesco Extra on Wragby Road, Marie Thorpe branded the scheme as "terrible." She remarked: "It's not fair. It's bad enough as it is."

When asked if she agreed with the scheme’s role in helping the country meet its net zero targets, she replied: "You've got to do it, but when it's costing people money and people are hungry, it's not on."

Ady, upon hearing the news, expressed little surprise. He said: "We've got to put up with what we have to put up with, don't we?

"The fact is, no matter what shop we use, the prices always go up and never come back down again."

He described it as a poor situation, "especially if you're on Universal Credit".

Another shopper, who wished to remain anonymous, admitted being unaware of the grocery tax but commented: "With what's been happening, it doesn't surprise me."

The Government has said the tax is geared towards covering the cost of handling packaging waste, instead of the cost burden falling on local authorities.