Carrier Bag Tax: UK Charges, Exempt Bags, and Penalties

In the UK, every retailer must charge for single-use plastic carrier bags at the till. In England, Scotland, and Wales the minimum is 10p per bag; in Northern Ireland it is 25p and applies to bags of any material priced at £5 or less.¹² The rules cover shops of every size, plus home deliveries and click-and-collect orders.

How Much You Pay in Each Nation

Each of the four UK nations sets its own charge:

Wales introduced the first scheme in 2011 at a minimum of 5p per single-use carrier bag.³
Northern Ireland started at 5p in 2013 and raised the levy to 25p from April 2022. It applies to all new carrier bags priced at £5 or less regardless of material, so paper, jute, and cotton bags are all caught.²
Scotland set a 10p minimum in 2014.⁴
England started at 5p in 2015 and doubled the charge to 10p on 21 May 2021.⁵

The 10p and 5p figures are minimums. A retailer can charge more, and many do for sturdier bags sold as reusable.

Which Retailers Have to Charge

In England, the charge originally applied only to businesses with 250 or more employees. That threshold was removed on 21 May 2021, and every retailer must now collect the charge regardless of size.⁶ A small independent shop follows the same rules as a supermarket chain.

The charge also applies to bags used for home deliveries and click-and-collect orders. Retailers usually add a flat bag fee to the order or charge per bag during packing, and the amount should appear on the receipt.¹

Which Bags Are Covered

In England, the charge applies to a bag that meets all four of these tests: it is made of plastic, it is 70 microns thick or less, it has handles and an opening, and it is unused.¹ That covers the standard lightweight bag at a supermarket checkout. Thicker “bags for life” fall outside the statutory charge, though shops usually sell them at their own price as a durable product.

Paper bags are not caught by the England rules, which apply only to plastic. A shop can hand out paper bags without adding the 10p, though it is free to charge for them commercially. Northern Ireland is different: its 25p levy covers bags of any material.

Bags and Items That Are Exempt

Even a bag that fits the plastic-and-handles definition is exempt when it exclusively contains certain items:

Unwrapped food, whether for people or animals, including loose fruit, vegetables, and bakery items.
Uncooked meat, poultry, or fish, where the plastic prevents cross-contamination.
Loose seeds, bulbs, flowers, or goods contaminated by soil, such as unwashed potatoes.
Prescription-only medicines, pharmacy medicines, or listed medical appliances supplied by a pharmacy.

Bags provided as part of a service where no goods are sold are also exempt. A dry-cleaner’s garment bag is the standard example.¹ These carve-outs exist so the charge does not compromise food hygiene, patient privacy, or the safe handling of goods.

Penalties for Not Charging

Enforcement in England sits with local authorities. A fixed monetary penalty of £200 can be issued to a retailer that fails to charge, reduced to £100 if paid within 28 days of the initial notice.⁷

For repeated or more serious breaches, local authorities can impose variable monetary penalties up to £5,000 for failing to charge, failing to keep records, or failing to supply records on request. Giving false or misleading information to an enforcement officer, or obstructing one, can attract a penalty of up to £20,000. A retailer that fails to pay on time sees the penalty increase by 50%.⁷ These are civil sanctions rather than criminal charges.

Record-Keeping and Where the Money Goes

Only large retailers, defined as those with 250 or more full-time equivalent employees, have to keep formal records and report them. For each reporting year they must record the number of single-use bags supplied, gross and net proceeds, any VAT included, what they did with the proceeds, and a breakdown of reasonable costs.¹ The data must be sent to the Secretary of State by 31 May of the following year.⁸

Smaller retailers still have to charge the 10p, but they do not have to file with Defra. Keeping basic records is still sensible, because enforcement officers can ask about bag sales during an inspection.

Net proceeds are what remain after deducting any recoverable VAT and reasonable costs of complying with the rules or donating the money.⁸ The government expects retailers to donate net proceeds to good causes, with an emphasis on environmental charities. This is framed as an expectation rather than a strict legal duty, but large retailers must report how they distributed the money.¹

1
GOV.UK. Carrier Bag Charges: Retailers’ Responsibilities
2
DAERA. Northern Ireland Carrier Bag Levy Statistics
3
Shared Regulatory Services. Single Use Carrier Bags Charge
4
Zero Waste Scotland. Single-Use Carrier Bags Charge (Scotland)
5
House of Commons Library. Plastic Bags – The Single Use Carrier Bag Charge
6
GOV.UK. Single-Use Plastic Carrier Bags Charge: Data for England 2021 to 2022
7
Legislation.gov.uk. The Single Use Carrier Bags Charges (England) Order 2015
8
Legislation.gov.uk. The Single Use Carrier Bags Charges (England) Order 2015