Overview
- Defra officials confirmed in late May that the government will not scrap the Extended Producer Responsibility packaging regime and expects it to remain in place after a planned June reset.
- The Bank of England has estimated EPR added roughly 0.5 percentage points to food inflation and industry modelling shows most of the new charges will be passed on to shoppers.
- The levy is calculated largely by weight, which makes glass-heavy packaging face a disproportionate share of fees and has prompted reports that Vidrala, owner of Encirc, may withdraw about £500 million of planned UK investment.
- Supermarket and manufacturer executives say retailers will still absorb tens of millions in extra costs that will hit margins and lead to higher shelf prices for consumers.
- The government argues EPR shifts waste costs from taxpayers, generates more than £1 billion a year and supports around 25,000 jobs while councils receive the revenue without ringfencing for recycling.