The introduction of a new £1.7bn a year government-backed recycling scheme has been deferred to October 2025. The announcement follows rumours that the extended producer responsibility (EPR) reform for packaging would be delayed following pressure from retailers and food producers, which have warned that it will increase prices on-shelf amid the cost of living crisis.
The scheme, which was scheduled to take effect in October next year, aims to make companies responsible for the costs of collection, sorting, recycling and disposal of packaging waste.
In a statement issued yesterday, the Department for Environment, Food & Rural Affairs (Defra) said that following engagement with industry, and in light of the pressure facing consumers and businesses in the current economic context, the decision had been taken to delay the introduction of the new rules by one year.
It added that the government would use the additional time to discuss the scheme’s design with industry and look to reduce the costs of implementation where possible.
Environment Minister Rebecca Pow said: “We’re determined to transform the way we collect, recycle and reuse our waste materials so we eliminate all avoidable waste by 2050 in a way that works for households and consumers. That’s better for our environment.
“We are also listening to industry and ensuring our work to tackle inflation and to drive up recycling go hand in hand, to make sure our reforms will be a success.”
The EPR scheme will apply to companies that supply packaged goods to the UK market under their own brand, import products in packaging, or sell non-UK made plastic products via an online marketplace.
Under the new rules, they would have to collect and publish data on their packaging and pay various costs before obtaining formal “notes” from reprocessors confirming the packaging waste has been recycled. Payments would be made to a publicly run scheme administrator before being passed to councils to collect plastic waste and handle its recycling.
Retailers and manufacturers had been called on ministers to postpone the EPR scheme, saying it would not benefit the environment as intended and that the cost of the charge, if passed on by producers to consumers, could add up to £60 a year to household bills.
Commenting on the delay in the introduction of EPR, Simon Roberts, CEO of Sainsbury’s, said: “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, and we will continue to focus on delivering the best value to customers in the coming months.”
NAM Implications:
- A no-brainer…
- …especially given the far more pressing issue of income inequality outlined in the Asda Income Tracker report.
