Chamber and committees

Extended producer responsibility for packaging (pEPR) has exemptions to avoid unnecessarily burden on small producers. Producers with an annual turnover less than £2m and 50 tonnes of packaging supplied are exempt from pEPR payments, but are required to report packaging data. This exempts approximately 70% of the UK's smaller producers from paying scheme fees. The four UK nations will keep these thresholds under review.

PackUK is the scheme administrator for extended producer responsibility for packaging (pEPR), operating on behalf of the four nations. PackUK is responsible for calculating and distributing local authority payments.

The requirements that PackUK must consider when assessing funding to local authorities are set out in the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024.

In November 2024 indicative payments were shared with local authorities, along with guidance to help local authorities understand how payments have been calculated and allocated. PackUK has also engaged with local authorities through online forums and gathering stakeholder feedback to ensure accuracy of payments. Scottish Local Authorities have been indicatively allocated a total of £160m in 2025-26, out of a total of £1.4bn in pEPR funding across the UK.

Scottish Government officials have continued to work closely with COSLA throughout the development and implementation of pEPR.

I refer the member to the answer to question S6W-36508 on 23 April 2025. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers.

Extended producer responsibility for packaging ensures that producers take full responsibility for the environmental impacts of the packaging they place on the market. Existing costs for the management of packaging waste are transferred from taxpayers to producers.

The Scottish Government has considered the impact on businesses through the publication of a Full Business and Regulatory Impact Assessment (BRIA)

Extended Producer Responsibility for Packaging is a four nations policy. The Scottish Government has worked closely with the Department for Environment, Food and Rural Affairs and the other UK nations to jointly develop and implement the extended producer responsibility for packaging scheme.

Once established Scottish Ministers and Government senior officials will hold seats on governance boards which will make up the governance for PackUK (the scheme administrator). This includes a Four Nation Ministerial Steering Board and an Executive Committee.

Under the Verity House Agreement, local government funding in Scotland will not be ring-fenced or directed, unless there is a clear joint understanding to do so. However, the extended producer responsibility for packaging funding purpose - to pay for the cost of managing household packaging waste - is clearly set out in legislation.

Classification of packaging waste as household or non household waste under extended producer responsibility for packaging is set out by the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024. Classification is based on several criteria and producers are encouraged to consult the regulations or contact SEPA for specific queries. Glass drinks containers that are not in scope of DRS, will be captured under packaging EPR data reporting and fee obligations. Drinks containers which will be obligated under DRS when in force, such as aluminum, will be exempt from pEPR fee obligations. The use of reusable/refillable packaging such as beer kegs or reusable bottles is also encouraged under pEPR, as producers are only required to report and pay disposal cost fees for household packaging the first time it is placed on the market, and can then offset these fees when they recycle this packaging at the end of its life, thereby avoiding the vast majority of pEPR fees.

I refer the member to the answer to question S6W-36501 on 23 April 2025. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers.

Under the Verity House Agreement, local government funding in Scotland is not ring-fenced or directed, unless there is a clear joint understanding to do so.

Extended producer responsibility for packaging (pEPR) fees are intended to incentivise producers to use less packaging and ensure packaging they do use is environmentally sustainable. It also ensures that producers take full responsibility for the environmental impacts of the packaging they place on the market, transferring these costs away from taxpayers.

Producers with an annual turnover less than £2m and 50 tonnes of packaging supplied are exempt from pEPR payments, but are required to report packaging data. This exempts approximately 70% of the UK's smaller producers from paying scheme fees.

Packaging within the scope of Scotland’s Deposit Return Scheme (cans and PET plastic) is exempt from packaging EPR. The use of reusable/refillable packaging such as beer kegs or reusable bottles is also encouraged under pEPR, as producers are only required to report and pay disposal cost fees for household packaging the first time it is placed on the market, and can then offset these fees when they recycle this packaging at the end of its life, thereby avoiding the vast majority of pEPR fees.