UKHospitality secures government rethink on EPR rules
Business
The UK Government has agreed to explore revisions to its Extended Producer Responsibility (EPR) scheme following sustained lobbying by UKHospitality and wider industry stakeholders.
At the centre of the concern is the current classification of certain packaging in the hospitality sector — including bottles of beer and wine, or cardboard packaging used in quick-service restaurants — as household waste. Under this interpretation, hospitality venues are often charged twice: once through fees passed on by suppliers under EPR, and again for commercial waste collection.
During a recent roundtable with Mary Creagh MP, the minister overseeing the scheme at the Department for Environment, Food and Rural Affairs (Defra), officials committed to working alongside the sector to address the issue. This follows detailed proposals submitted by UKHospitality in 2023, with the aim of preventing unnecessary financial burdens on venues.
If progress continues according to current timelines, any revised approach could be implemented during the second year of the scheme.
UKHospitality has been a prominent voice in highlighting the challenge, submitting formal recommendations to Defra, co-signing letters to the Secretary of State with a coalition of businesses, and escalating the matter to the Prime Minister and Chancellor due to lack of response. The organisation's proposed adjustments include:
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Direct supply of packaging to hospitality businesses and exclusive hospitality wholesalers, including pub companies, is exempt from EPR.
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Where a premise sells packaged product for consumption both on- and off-premises, there needs to be a mechanism that allows for EPR to be paid on only the volume taken off-premises.
Kate Nicholls, Chief Executive of UKHospitality, said: I’m pleased that Defra is finally properly engaging with this issue and acting on our concerns. UKHospitality has been campaigning on this issue for over a year and warning of the unfair and costly impact it will have on hospitality businesses.
We have put forward clear proposals that can solve this issue, which include an exemption for closed loop hospitality businesses, and I hope that we can work at pace with the Government to put something in place for the second year of the scheme.
Of course, this is not an ideal timeline for businesses affected this year. In light of the Government acknowledging that there is a problem that needs solving, I urge hospitality suppliers to recognise this and not pass additional EPR costs through to operators.
Discussions between the industry and the Government are ongoing.
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