Defra will reconsider its system of calculating fees for extended producer responsibility (EPR) following industry's outcry and warnings over huge cost increases that would “inevitably” be passed on to consumers.
In a meeting with producers and local authorities on Monday (16), Defra bosses confirmed they had been bombarded with complaints from the glass industry after its estimates for the cost of recycling were unveiled at up to £330 per tonne.
Defra also admitted the new model was still “under development”, though it had been intended as a model for other sectors to follow, with the rethink adding to uncertainty over the future of the charges.
It said it “understands the concerns from the glass industry, in particular regarding the higher-than-expected fees using this approach” and confirmed a meeting would take place with industry bosses that could see major changes to the way the fees are calculated.
“We are currently reviewing the approach to include a consideration of a volume-based approach versus using a weight-based approach,” Defra said.
Nick Kirk, technical director of British Glass, said, “The newly introduced base fees, calculated based on the weight of packaging materials, place a disproportionate burden on the glass industry compared to other materials.
“These fees are much higher than expected, and British Glass fear implementation without revision could lead to significant job losses within the glass industry due to material switching.
“We urge the government and stakeholders to reconsider the fee structure of the EPR scheme in advance of the second set of illustrative base fees due to be published in September. Adopting a cost per unit system will drive better environmental outcomes, as individual units of packaging impact the environment rather than the weight of packaging."
Although the actual rates for the first year of EPR scheme for packaging will not be published until April 2025, Defra recently published its estimated base fees for EPR, the flagship policy intended to make the industry responsible for the cost of recycling the packaging it puts on the market.
British Glass has called for the introduction of the scheme to be delayed, warning that there will be “significant job losses” across the industry unless there is an “urgent and critical reassessment” of the fees. British Beer & Pub Association (BBPA) claimed the charges could add up to 7p on all of the 3.2 billion bottles of beer sold each year in the UK, a total of more than £200m.
