Source · Select Committees · Environment, Food and Rural Affairs Committee
Recommendation 9
9
Rejected
We understand the logic behind some of the changes the previous Government made to its...
Recommendation
We understand the logic behind some of the changes the previous Government made to its Extended Producer Responsibility (EPR) proposals in response to the last consultation. We sympathise with the aim of reducing the financial impact on individual producers to avoid an escalation of food prices under EPR for packaging. However, there is a risk that exempting a large number of smaller producers from financial obligations—and no longer covering the costs of commercial waste— could undermine the scheme’s aims to make ‘polluters pay’ and incentivise more sustainable product design. We recommend that the Government should set out a roadmap for lowering the threshold for financial obligations under EPR so that by 2030, producers placing 1 tonne of packaging on the market or more should pay the cost of managing its disposal. (Paragraph 47) Refill and reuse
Government Response Summary
The government disagrees and will maintain the existing de-minimis threshold, while introducing a new reporting obligation on smaller producers and reviewing the de minimis threshold in 2026/27.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. As part of our pEPR proposals, we set out to make sure that as much packaging as possible is brought into the system while avoiding placing unnecessary burdens on the smallest producers. In 2021 we consulted on reducing the ‘de-minimis’ threshold to exclude only producers that have an annual turnover of £1 million or less and place 25 tonnes or less of packaging on the market each year. While there was majority support (57%) for this approach at consultation, respondents did express concerns about the burden these additional obligations would place on both small producers and the Scheme Administrator. Based on the concerns expressed at consultation, uncertainty around the number of new producers that would be obligated, and the government’s wish to minimise the burden on small producers, the 2022 government response to the consultation confirmed: • Maintaining the existing de-minimis threshold on larger producers (over £2 million turnover and 50 tonnes of packaging placed on the market) for pEPR payments and recycling obligations for the time being. • Introducing a new obligation on manufacturers and distributors who are over the larger producer de-minimis threshold that sell unfilled packaging to producers below that threshold (the “distributor approach”). This will make sure that almost all packaging is subject to pEPR fees, but still reduce the burden on the smallest producers. • Placing a new, simplified reporting only obligation (i.e. no recycling or cost obligations) on smaller producers with an annual turnover over £1 million that place over 25 tonnes of packaging on the market. This should encourage these producers to think more carefully about their packaging use and provide additional data on the amount and type of packaging that is placed on the market. This data will be used to inform a review of the de-minimis in 2026/27 that was a commitment in the pEPR Government Response. This approach to the de minimis threshold, including the option to lower the threshold, will be reviewed in 2026/27 as part of our wider review into pEPR.