Ministers have promised councils more than £1 billion next year from the controversial extended producer responsibility (EPR) scheme for packaging waste, seemingly ending any debate over its introduction.
The government said in its first Budget last week that it would make top-up payments to local authorities if the recycling levy didn’t reach expected income levels.
The Treasury said EPR, which will see packaging manufacturers charged for the cost of recovering the material, was expected to provide £1.1bn for councils in the next financial year.
It added in the full Budget document: “Exceptionally for 2025-26 only, and recognising the importance of local authorities being able to effectively plan their budgets, the Treasury will guarantee that if local authorities do not receive EPR income in line with the central estimate there will be an in-year top up.”
The strong financial commitment would appear to quash hopes of a delay to the packaging levy, as demanded by more than 80 companies last month.
The government in October published revised “illustrative base fees” for 2025/26 but a row over the level of the levy rumbled on. Councils claimed the latest fees were too low while producers demanded further cuts.
However, the regulations to introduce EPR were recently laid in Parliament and now the government has promised councils significant income from April through the scheme.
A government spokesperson said last week: “Extended producer responsibility for packaging is a vital first step for our packaging reforms, which will create 21,000 jobs and stimulate more than £10bn investment in the recycling sector over the next decade.”
