Extended Producer Responsibility fees delayed to 2025

EPR will put the financial responsibility for packaging waste on the companies that use, supply and produce it
EPR will put the financial responsibility for packaging waste on the companies that use, supply and produce it

Extended Producer Responsibility (EPR) charges for packaging converters, producers and suppliers have been delayed a year, from October 2024 to 2025.

The government blamed economic pressures for the delay, but said it would use the time to finalise plans for the scheme’s implementation with local government, businesses, and waste management companies.

Companies involved in packaging will still have to collect and process data on the amount and nature of packaging they use or produce during the delay.

The EPR scheme’s feasibility came under scrutiny earlier in July when the government’s Infrastructure and Project Authority gave the government’s wider waste reform project, of which EPR is a major part, a ‘red’ status warning.

A red ranking means that the project’s successful delivery within deadline “appears to be unachievable,” according to government guidelines.

Jacob Hayler, executive director at the Environmental Services Association, said the decision was hard to believe.

He said: “It is incredible that after five years, two rounds of formal consultation and countless man-hours spent in preparation, critical waste reforms continue to be hamstrung by dither and delay.”

He added that the UK was badly in need of consistent recycling and packaging policies if it were to reduce packaging waste and build a viable secondary (recycled) plastics market.

The British Retail Consortium’s food and sustainability director, Andrew Opie, however, said the delay to EPR charges were necessary given the background of high food price inflation.

He said: “The government is right to extend the timelines on its packaging reform.

“Its plans are not ready, and [implementation now] would simply drive up food prices without delivering the improvements in recycling everybody wants.”

Sainsbury’s boss Simon Roberts concurred, saying: “Whilst we remain absolutely committed to a circular economy and support the introduction of EPR, we welcome today’s announcement.

“This will provide the necessary time to work across our industry and with government in order to get EPR right first time. This decision is also an important step in minimising further pressure on food inflation.”

Having been granted breathing room, the packaging and production industries should offer their full support to the reforms, according to Kathy Illingworth, head of sustainability and consulting at environmental compliance agency Ecoveritas, which specialises in packaging.

She said: “It’s bittersweet.

All eyes will be on the industry now, who, having gotten the delay they wanted, should rally around a good policy for the planet and the environment. 

“Perhaps the government can now make progress on the consistency of collection by local authorities, which will be essential if EPR is to be the effective policy we know it can be.

"What is clear is that there were major question marks over the scheme's readiness and a real lack of confidence. We must now prioritise agreeing and setting the fees this summer so that affected companies can plan for these additional costs.”

Miles Roberts, group chief executive at DS Smith, also commented: “The lack of clarity on recycling reforms has done nothing to further the UK’s environmental ambitions, so we hope that the government uses this extra time to work with industry to implement a robust and effective EPR scheme. Any such system should be used to deliver on the ultimate goal of increasing the UK’s recycling rates by funding improved infrastructure and delivering more consistent policies.

“Producer payments under EPR could help fund better waste collection systems, such as the separate collection of materials, and get Britain back on track to meeting the government’s recycling rate targets. If we miss this opportunity to reinvest in the UK’s recycling system, EPR will be little more than a tax on businesses and, ultimately, consumers, which does nothing to support our transition to a circular economy.”

According to Defra, UK packaging producers that import or supply packaging must take action to comply under EPR if they are an individual business, subsidiary, or group (but not a charity) that has an annual turnover of £1m or more (based on their most recent accounts), were responsible for over 25 tonnes of packaging in 2022, and carry out any of several listed packaging activities.

These include the supply of packaged goods to the UK market under their own brand, placing goods into packaging that’s unbranded when it’s supplied, importing products in packaging, owning an online marketplace, hiring or loaning out reusable packaging, or supplying empty packaging.​