‘Nonsensical’ packaging rules will cost millions

EPR impact on pubs
Sector voices: a letter has been signed by a number of pub groups, labelling the EPR scheme as 'flawed' (Getty Images/Connect Images)

The Extended Producer Responsibility (EPR) scheme means firms will have to pay twice for recycling.

Voices from across the sector have written to Defra secretary of state Steve Reed, calling for packaging supplied to hospitality companies to be exempt from EPR.

Signatories included a number of firms from the on-trade such as Punch Pubs & Co, St Austell Brewery, Wells & Co and Stonegate Group.

The levy is charged to suppliers and is being passed onto hospitality venues, which also pay to recycle the products commercially, according to UKHospitality.

The trade body estimated the scheme will cost the sector millions while individual pubs will see cost hikes of about £2,000 a year.

EPR aims to hold producers responsible financially and/or operationally for their recycling responsibilities.

Flawed scheme

Producers are required to meet these costs from April 2025 after legislation came into force to underpin the scheme at the beginning of this year.

The letter outlined how this could mean venues have no choice but to pass this ‘double charge’ onto consumers.

It said: “The consequences of the flawed EPR scheme are now being felt by the hospitality sector.

“Bills from suppliers are now being received, resulting in significant cost increases as a result of EPR.

“Medium-sized outlets are seeing increases nearing £750 and a small venue up to £350 per year.

“Larger pubs will see increases of around £2,000. This is in addition to their commercial waste contracts."

Double charge

It added: “Hospitality businesses will be forced to pass at least some of the additional cost of this EPR fee onto their customers, as their suppliers have done to them.

“Hospitality businesses are being double-charged. They are being passed on an EPR charge, levied on a product incorrectly determined as household waste and they’re paying for that same product to be disposed of commercially.

“This nonsensical EPR is designed to recover costs for the collection of household waste.

“The vast majority of packaging supplied to hospitality businesses is not leaving the premises and should not be considered as ‘household’ waste.

“Packaging supplied directly from suppliers to hospitality businesses, particularly closed-loop businesses, should not be levied with EPR charges.”