EPR is due to come into force in April 2024.
Industry association the British Retail Consortium (BRC) said an urgent government rethink was required regarding the current plans, and laid out six reforms it believes are necessary “to create a waste management system that is fit for the future”.
“Major retailers are calling on Government to fix the policy. At a cost of at least £1.7bn per year, businesses want a world class new EPR scheme that significantly increases the use of recycled materials in new packaging as they try to meet their ambitious sustainability goals. Unfortunately, there is little confidence in Defra's current proposals for EPR," the BRC stated.
Retailers want EPR funds to be ring-fenced to stop local councils potentially diverting money away from recycling to other budget streams.
The BRC also called for co-ordination with other waste management reforms, and said that EPR only made sense if done alongside improvements to household waste collection.
“Once this is in place, the UK should consider a new deposit return scheme to fill any gaps.”
The trade association also pointed to “high performing European and Canadian programmes” that are industry-led.
“The current proposals risk setting the UK back environmentally, and at a significant cost to businesses, and consequently their customers, many of whom are already struggling with the cost of living,” it stated.
BRC CEO Helen Dickinson said the government’s haste to introduce the new system was “undermining the system itself”.
“It’s time that government went back to the drawing board. We have the opportunity to get it right on the future of a waste management scheme that will determine UK recycling rates for a generation. We want to see a scheme which improves recycling in the UK and ensures a steady supply of recyclable material that can be reused for future packaging,” she said.
Defra said it was committed to continuing to work closely with industry as the final design of the scheme was decided, and the delivery plans were developed.
A spokesperson commented: “We have been engaging extensively with waste and packaging companies, manufacturers, national retailers, environmental organisations and local government to outline what could be required for future packaging reforms.
“We will continue to engage and involve industry in shaping EPR policy and ensure their views are involved in key decisions.”
Last month, an Ecoveritas study found that the vast majority of affected packaging producers were not prepared for the EPR reforms.
Powers in the Environment Act will move the cost of dealing with packaging waste away from the taxpayer and on to packaging producers, who will pay for the full cost of managing packaging waste from households. The change is expected to drive a reduction in the amount of packaging used, and increase the use of packaging that can be recycled and meet higher recycling targets.
The BRC had already warned that the EPR and Deposit Return Schemes combined would “add around £4bn in costs to retailers”, which will be passed down the line to consumers.
