UK drinks trade associations have urged the government to address “significant” issues with Extended Producer Responsibility for Packaging (EPR) scheme, warning the scheme is “flawed”.
In a letter, the industry bodies said the implementation of EPR – regulations under which producers cover the costs of managing and recycling the packaging waste they produce – was “unviable”.
In August, the UK Department for Environment, Food and Rural Affairs (Defra) released an “illustrative” fee base for EPR.
Under the EPR scheme, producers must report how much packaging they put into the market and pay associated rates per tonnage.
The legislation necessary to enact EPR came into force on 1 January but the fees are not set to kick in until 1 April. The industry associations are seeking to delay the introduction of the fees.
In the statement, Wine and Spirit Trade Association chief executive Miles Beale said: “EPR fees are another nail in the coffin for UK businesses whose profits – and any growth – have been drained by a barrage of added tax levies and increased costs, which will hit hard especially for SMEs who have limited reserves.
“The lack of clear information regarding costs means businesses can’t plan effectively – or at all.”
One of the major points raised in the letter is the lack of clarity around the EPR fees.
“Currently, businesses will start to accrue a liability for fees from the start of the 2025/26 financial year in less than six weeks’ time – at which time actual fees will not be known,” a statement from the WSTA said. “No business can be expected to sign up or account for unknown costs.”
Trade bodies have also pointed to the fees associated with glass packaging. The industry has pointed out that glass is an “infinitely recyclable” material, yet the “disproportionately high fees” imposed on it are “discouraging” its use.
The fees for glass, they argue, could result in a shift towards “less recyclable materials”.
Defra’s new estimate for EPR fees on glass, £240 ($302) per tonne. The industry associations cited earlier estimates of £110 to £215 per tonne.
The fees would amount on average to 12p per bottle of wine, 5p on a bottle of beer, and 18p per bottle of spirits, they argue.
“The lack of clarity on fees means businesses are unable to plan for the future in confidence. The scheme lacks incentives for local authorities to help turn used packaging into new packaging and has no requirement that payments made must be spent on improving recycling systems,” Ruth Piggin, director of industry sustainability at the Scotch Whisky Association, said. “We need the UK government to delay and review the scheme and work closely with industries to achieve our shared goal of reducing packaging and retaining valuable materials for use.”
Just Drinks has contacted Defra for comment.
