All large retailers must now charge at least 5p per carrier bag, with proceeds to go to good causes across the UK. Tesco has said the money raised in its stores will pay for green space improvement projects, including pocket parks, sports facilities, woodland walks and community gardens.
Community groups and charities can apply for the funding, with six projects being funded in each of 428 regions each year. The amount of funding available for individual local projects will range from £8,000 to £12,000.
There will be two voting rounds a year, with customers able to decide where the money ends up. For the first three year adminstration of the local funding will be handled by Groundwork. Applications for funding open from 19 October.
Based on statistics from Scotland, Wales and Northern Ireland - where a bag charge already exists - Tesco anticipates plastic carrier bag use in England to drop by nearly 70 per cent as a result of the levy.