The 5p Plastic Bag Charge & How Your Business Can Benefit
Posted on October 5, 2015 at 10:30 AM

The 5p Carrier Bag Charge Explained
The 5p plastic carrier bag charge is intended to reduce the use of single-use plastic carrier bags in England, and the damage they cause to the environment when littered in our towns and countryside. According to research, in 2014, 7.6 billion plastic carrier bags were given to customers by major supermarkets across the country. That’s equivalent to 61,000 tonnes of waste that takes far too many years to degrade! Strictly speaking only larger retailers are lawfully bound to levy the 5p charge, however smaller businesses can charge for carrier bags on a voluntary basis. Research suggests that the vast majority of independent retailers will follow suit, with corner shops already set to cash in alongside the high street supermarkets. Despite being dubbed the plastic bag tax, the 5p charge is not a tax at all; the money charged following the change in legislation does not end up in the government’s pocket. All proceeds from the sale of plastic carrier bags is collected by the retailer, who are being encouraged to use the proceeds for good causes. Every year the government will publish a report on how much is made from bag charges and what is donated by each retailer. There are a few exemptions from the 5p bag charge. These include:![]() |
Paper Bags |
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Plastic carrier bags from shops in airports, on board trains, ships or aeroplanes |
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Bags containing certain items such as raw meat, fish, unwrapped food, prescription medicines, seeds, bulbs, flowers or live fish. |
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Bags used to giveaway promotional material |
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Woven plastic bags |
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Returnable, reusable bags (‘bags for life’) |

How Can Your Business Benefit?
Experts predict the 5p charge will see plastic bag consumption fall by 80% – the equivalent of 6.4 billion bags. In light of this, the number of people purchasing reusable ‘bags for life’ is expected to increase. Never before has there been such a high likelihood that promotional bags will be used with reliable frequency, so it’s a fantastic time to supply your own ‘bags for life’ to meet this new demand.
Above all, the increased use of reusable bags will bring a greater return on investment for your business. Bags for life provide a valuable, cost-effective branding platform for generating awareness and helping your business to stand out from the competition. The 5p charge will boost the practical lifespan of reusable bags, which will directly impact the longevity and effectiveness of your promotional bag marketing campaign.
Even consumers not actively seeking to purchase bags for life will welcome a branded bag that is far more cost-effective than a 5p plastic bag. Tradeshows, events and conferences are a perfect opportunity to give out promotional reusable bags to reach a wide audience of potential customers.
How to Make Sure Consumers Use Your Bag
At Bags of Ideas we have years of experience in supplying branded promotional bags for a range of businesses. We know just how important an innovative, eye-catching design is for making the right impact and maximising brand awareness.
To help you design the perfect promotional bag for your business, follow these two simple tips:
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See below for recommended promotional bags for your business. Please get in touch if you’d like to find out more about our services and how to design your perfect bag.
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Promotional Shopping Bags
Here’s a small selection of our promotional shopping bags.