What is the "toaster tax" and how could it hurt consumers? Net zero plans explained

New rules surrounding net zero targets will hit shoppers in their wallets, a trade association has warned.

The Department for Environment, Food and Rural Affairs (Defra) has unveiled plans for shops to allow "trade-ins" for old electrical appliances - even if they were not purchased in-store. This means high street retailers who go to fit a new fridge in someone's home would be taking away the old one.

In theory, this would also be done free-of-charge for the consumer - but may come with a fee elsewhere.

The move, which has been dubbed the "toaster tax" could lead to retailers charging customers more for the new product, to offset the cost of dealing with the old appliance. Speaking to the Telegraph, Helen Dickinson, chief executive of the British Retail Consortium, warned it could cost companies £1bn or more each year.

This, she added, would likely be passed on to consumers.

"We think [the bill would be] in the hundreds of millions of pounds plus, and could be £1bn or more," she said. "If retailers have to take in more than they sell, some who only sell small volumes may stop selling them at all and larger supermarkets may also reduce the ranges offered, both reducing choice for customers.

"The government has dithered for years and now announced proposals which are flawed as they chose not to collaborate with the retailers - who are vital to the success of increasing electrical recycling."

A consultation on the proposals will run until March 7. Recycling minister Robbie Moore said at the time: "Every year millions of household electricals across the UK end up in the bin rather than being correctly recycled or reused. This is a sheer waste of our natural resources and has to stop.

"We all have a drawer of old tech somewhere that we don’t know what to do with and our proposals will ensure these gadgets are easy to dispose of without the need for a trip to your local tip. Our plans will also drive the move to a more circular economy and create new jobs by making all recycling simpler."