The number of plastic bags handed out fell from 13.4bn in 2007 to 9.9bn last year, a 26% drop, according to figures from Wrap, the Government's anti-waste body.
Wrap said that even though billions were still being given away they contained 40% less plastic because more recycled material is used in their manufacture.
A total of 21 leading supermarkets and high street chains agreed to cut bag waste by 25% in February 2007.
The charge also raised hundreds of thousands of pounds for green causes through the charity Groundwork.
Tesco introduced loyalty points for customers reusing bags, helping to slash the number of bags by 2bn.
Sainsbury's said it moved bags from the bagging area so that customers had to request them -- however, many Sainsbury's stores still have bags here, which are freely available to customers.
Having smashed the original target supermarkets have now agreed a target of reducing the number of bags by 50%, from 2006 levels, by May.
In February 2008
The Department for the Environment, Food and Rural Affairs welcomed the progress made by supermarkets but said that it would retain the option of introducing a charge for bags if stores failed to keep up their commitments.