"The revenue should be used to invest in reprocessing facilities and 'binfrastructure" to ensure that the remaining disposable cups are recycled'.
Some 2.5 billion coffee cups go into England's trash every year, enough to encircle Earth half a dozen times. Since litter encourages more littering, this creates a vicious cycle. The committee said that if the recycling target is not met then disposable coffee cups should be banned.
"Disposable coffee cups may only represent a small fraction of the national annual tonnage of card and plastics produced which are lost from our recycling streams, but they leave the worst taste reminder of how on-the-go consumption can result in needless waste of our precious natural resources".
"Once coffee cups are separately collected they have a value and can be made into new products".
ACE also stated that it is working with local authorities and waste management organisations to include disposable cups in kerbside collections.
From next week, Greggs Bakery will offer 20p off hot drinks for customers who bring their own cups.
A spokesman for Starbucks said of 5p charge trial: "We recognise there is growing concern about the number of single-use paper cups being used".
Last year researchers at Cardiff University concluded that charging 25p for every coffee cup would help cut the number used by up to 300 million a year.
But it also makes the cup hard to recycle, because splitting the materials is expensive.
Following publication of the report, global coffee giant Starbucks says it will try out a 5 pence (5.6 euro cents) cup charge in some of its London coffee shops.
A spokesperson for the British Coffee Association said the proposed levy would place an unfair cost on coffee drinking consumers alone-despite the fact that other types of packaging are responsible for far more paper waste.
The lawmakers say a stick is more effective than a carrot in changing consumer behavior.
Thomas also identifies that it would cost around 5p tax per cup to support a cup recycling network on a national scale but she agrees that if the coffee houses had to pay a 25p levy it would be a preventative act that is more likely to effect change. "The government must do the same and introduce the levy as soon as possible".
In his Budget, Chancellor Philip Hammond described plastic waste as a "scourge" and announced that he and Environment Secretary Michael Gove would investigate a single-use plastic tax to reduce waste. Many coffee drinkers are not aware of this and put their cups into recycling bins.
The multi-layer material prevents the cup being recycled in exclusively paper or plastics recycling streams.
Foodservice Packaging Association executive director Martin Kersh fears a ban on disposable cups would cause some coffee shops to close.
The Grocer has contacted Pret and Costa for comment.