EPR: Levy comes into effect as reporting deadline hits
Today (1 October) marks the commencement of the Extended Producer Responsibility (EPR) levy. It also marks the deadline for which ‘large producers’ under the scheme must report their packaging data for the first half of 2025.
A business is classified as a ‘large producer’ and must report every six months if it has an annual turnover of over £2m and supplys and/or imports more than 50 tonnes of packaging in the UK. Small producers by contrast turnover between £1m and £2m per year while supplying and/or importing between 25 to 50 tonnes of packaging and must report every 12 months.
The overall scheme will be based on weight of packaging material, adversely affecting glass producers due to the higher weight of the material. This will frustrate many in the sector due to fact that the silica-based product is infinitely recycable. Under the scheme a standard bottle of wine will cost 9p more, with a 4p rise on the cost of a 330ml beer bottle. John Lewis recently reported that EPR could cost the firm £29m, with many businesses reporting the levy’s cost will inevitably be passed on to the consumer.
Though glass is far easier to recycle than other materials, it is worth noting glass has a substantial environmental footprint due to the impact of silica mining. Sand is also the second most used resource in the world after water.
Sean Murphy is the MD of Encirc, one of the UK’s largest glass manufacturers. Thanks to investment in hydrogen power and biofuel the company is developing low-carbon production. Murphy believes the policy is “an economic and environmental own goal”.
He continued: “This tax will hit everyone – in the supermarkets, pubs, and glass factories that create thousands of jobs. It is a bitter blow for businesses such as ours which are investing heavily in green technology.
“The government must hit the pause button on this.
“Encirc is leading the industry in low-carbon manufacturing, from successful biofuel trials in Northern Ireland, to pioneering investment in hydrogen furnaces in Cheshire.
“An arbitrary measurement based on the weight of materials unfairly penalises glass and just doesn’t work.”
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