Defra publishes estimated fees under the EPR for packaging scheme
19th September 2024
The Department for Environment, Food & Rural Affairs (Defra) has published the initial illustrative base fees payable by food and drink companies under the extended producer responsibility (EPR) for packaging scheme.
The fees payable are for the first year of the EPR for each of the eight packaging categories.
They do not include regulator charges or costs associated with meeting packaging recycling targets.
The fees range from £130 to £655 per tonne, depending on the type of packaging, with aluminium and plastic facing some of the highest costs.
What does this mean for the food & drink sector?
For food business operators (FBOs), the introduction of the EPR represents both a challenge and an opportunity.
This forward-looking initiative, designed to ensure a more sustainable approach to packaging production and disposal, will undoubtedly require significant changes in how businesses operate. However, it also presents a unique opportunity to innovate, improve the environmental footprint of FBOs, and lead the way in sustainable packaging solutions.
The EPR scheme places a significant degree of responsibility on FBOs, the producers, for the environmental impacts of their products from design to post-consumer stage. The EPR will shift the full cost of managing household waste onto producers.
While this may seem daunting, it also offers a chance to evaluate and improve practices, and to contribute positively to the environment. You can read all of our previous articles on the subject here.
The EPR scheme will require thousands of businesses with an annual turnover of more than £2m and which handle more than 50 tonnes of empty packaging or packaged goods in the UK to cover the full net cost of recycling.
Fees will be incurred from 1 April each year based on packaging supplied by the registered producers for the preceding calendar year. This means fee rates for the first year of EPR for packaging (2025/26) won’t be known until after 1 April next year.
Defra expects to issue the first invoices in the Summer of 2025.
The illustrative base fees can be accessed here. The fees are estimates, based on the best available evidence to date and Defra intends publishing the final illustrative base fees in the Autumn of 2024.
Need support? Our Food & Drink team can help you meet these challenges. Find out more and get in touch with our team here.
Explore other key developments in our Food & Drink Update here.
