Warning over knock-on effects ahead of first packaging scheme invoices

PackUK, the government agency set up to manage the new extended producer responsibility for packaging (pEPR) regime, will begin issuing notices of liability for the first year of the scheme this month. The primary aim of the pEPR is to shift the recycling and disposal costs of packaging away from the local authorities towards the producers of the packaging.

Obligated packaging producers will be invoiced for a flat fee charged based on figures reached by dividing waste management costs by the total amount of packaging placed on the market. Producers will have up to 50 days to pay, either in full or by setting up quarterly instalments, with the anticipation local authorities will benefit by November.

But while the final year one base fees are lower than anticipated, experts have warned that the fees penalise heavier packaging – such as metal tins and glass bottles – despite this being more recyclable than plastics.

Eluned Watson, an environmental and regulatory specialist at Pinsent Masons, said: “We have experienced first-hand how dedicated our clients are to complying with the pEPR regime. However, concerns about economic challenges and consequential impacts are justified”.

“This is an ambitious initiative that is aiming to achieve a great deal in generating funds for the local authorities, making producers financially responsible for the costs of managing packaging waste, and incentivising companies to design sustainable products that meet the aims of the circular economy.” 

“That said, the knock-on effects of this positive work require careful management to avoid unfairly penalising specific sectors, in particular, the glass and metal manufacturing industry and the hospitality industry,” she said.

She added that producers should review their receipts at the earliest opportunity to check the figures are accurate.

From year 2 of the pEPR, fees will be modulated, with higher fees applied to the least recyclable packaging materials, in a drive towards encouraging more sustainable packaging approaches.