Defra has released the first estimation of Local Authority Household Fees (referred to as “Base Fees”), which producers of household packaging will incur for the household packaging that they have placed on the market in 2024 under Packaging Extended Producer Responsibility (EPR).

Until the release of these fees, the only information available to producers of the likely increase in cost that they would incur under EPR compared to the previous Packaging Waste Regulations system, was an overall net increase to all UK producers of £1.4bn.

Timescales

These fees will first be payable in 2025 and invoiced directly to producers by a new central body, the Scheme Administrator.  These will be first invoiced for household packaging placed on the market in 2024, in October 2025.  In future years it is expected that “the Scheme Administrator will invoice the fees in early summer”.

EPR Base Fees 

Defra has provided low, medium and high estimates for the first release of Base Fees. These ranges take account of different estimations of the quantity of household packaging of each material placed on the market and its net collection costs (after deduction of material value).  Defra plan to revise these illustrative fees in September 2024. Producers will be advised of the final Household Fees that they will pay for packaging that they have placed on the market in 2024, in the summer of 2025.

The fees have not been calculated using data that producers have reported under EPR, they are based on modelled household packaging placed on the market data for 2022 and with the exception of glass, are based on estimated Local Authority costs provided by WRAP (Waste and Resources Action Programme).  The glass fees are based on Local Authority costs that have been calculated using the methodology that will be used to calculate Local Authority payment under EPR.

Whilst the publication of these fees is helpful to enable producers to budget, the uplift in costs to all producers is significant, particularly for those using predominantly packaging materials such as paper and wood, which have typically benefitted from low PRN prices.

REPIC will continue to represent our producers to support a packaging EPR system which works effectively, achieves improved environmental performance of packaging and whilst ensuring costs to producers are fair, recognises producers own packaging collection activities.

Modulated Fees

Defra confirmed that the packaging materials placed on the market in 2025 that will incur modulated fees in 2026, will be released in Autumn 2025.  This is earlier than the previous “by the end of 2025” timescale communicated by Defra and is good news for producers, allowing slightly longer to prepare than envisaged for reporting packaging placed on the market data in new packaging sub-categories.

Defra’s full press release is available here.

Keeping our members updated

You will have received a 2025 packaging cost forecast for your company the day after Defra’s press release, including a comparison to your estimated 2024 compliance costs.

We are holding two REPIC ROOMs (REPIC Online Open Meetings) at 10.30am on Wednesday 21^st and repeated on Thursday 22^nd August 2024, to explain the implications of these charges further and to answer your questions.  Please contact Janette Ollerhead at janetteollerhead@repic.co.uk if you are a REPIC packaging member and have not already booked your place.

If you are not currently a REPIC packaging member and are interested in our packaging EPR services, please contact Vikki Law at vlaw@repic.co.uk.