UKHospitality (UKH) has claimed the potential win for the sector after EPR fees for recycling came into effect in April this year.
UKH explained that due to “poorly drafted rules” that classify some packaging sold in hospitality, like bottles of beer and wine or cardboard packaging in QSR (quick-service restaurants), as household waste, many venues are being forced to pay twice for recycling.
It added businesses are being passed on an EPR fee via their suppliers and they are having to pay to recycle their waste commercially.
The trade body was part of a collective that wrote to the Government accusing the Department of Environment Food & Rural Affairs (Defra) of ignoring the impact EPR will have on the sector.
Hopeful of solution
UKH said at a roundtable with Mary Creagh MP, the Defra minister responsible, it was agreed the department would work with the sector to explore a solution to this issue, in line with proposals we put to them last year.
UKH said: “We are hopeful this solution can be brought forward for the second year of the scheme.
“UKH has led the way in urging the Government to rectify this issue. We have put clear solutions forward to Defra, the Government department responsible for the scheme, and written to the Secretary of State, alongside a coalition of leading businesses. We recently escalated our concerns to the Prime Minister and Chancellor, as a result of Defra’s inaction.”
UKH CEO Kate Nicholls said: “I’m pleased Defra is finally properly engaging with this issue and acting on our concerns.
“UKH has been campaigning on this issue for over a year and warning of the unfair and costly impact it will have on hospitality businesses.
Exemption for on-trade 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.”
UKH’s proposed solution is:
1. Direct supply of packaging to hospitality businesses and exclusive hospitality wholesalers, including pub companies, is exempt from EPR.
2. 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.
