FDF Response to Defra Packaging Reforms

DEFRA has released the illustrative base fees for the first year of EPR.

The fees are presented as a likely fee range for each packaging category, which are a first estimate based on the weights of household packaging placed on the market in 2022. These are not final figures and Government intends to publish refined figures for the illustrative base fees in September 2024.

EPR fees will begin to be incurred from 1 April 2025, where the final fee rates will be calculated based on packaging supplied by registered producers for the preceding calendar year. This means that final fee figures will not be available until at least 1 April 2025.

Once checks are made and billing approvals have been made, it is expected that the Scheme Administrator will issue invoices in early Summer 2025. Modulated fees will be introduced during the second year of EPR to incentivise the use of packaging materials that have a lower environmental impact. The types of packaging that will incur higher or lower fees, and sub-categories of packaging that need to be reported, will be announced in Autumn 2024.

Jim Bligh Director of Corporate Affairs and Packaging, The Food and Drink Federation said:

"Food and drink manufacturers support the government's zero waste goal and are committed to a cleaner environment. We welcome the long awaited release of base fees for Extended Producer Responsibility (EPR), which helps manufacturers take more responsibility for packaging and helps them plan for 2025 costs.

With EPR expected to cost at least £1.4 billion in 2025, it's crucial that funds are used to improve recycling infrastructure. Everyone must work together to ensure EPR drives value, boosts recycling rates, and fosters a circular economy. DEFRA should now empower producers to manage the scheme, encouraging investment, green jobs, and innovation in packaging."