Chamber and committees

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.

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-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.

Packaging EPR policy is intended to transfer the cost of managing household packaging, once it becomes waste, from local authorities to the producers supplying that packaging. However, some packaging can be discarded by both consumers and businesses and is captured by the household packaging definition, particularly when supplied to a wholesaler or sold in hospitality settings.

The four nations recognise the concerns raised by some businesses and have worked to address concerns around the current definition of household packaging. There is currently no established method or international precedent that meets the expectation of UK businesses. We will continue to engage with sectors on a way forward for future years and will share more information soon.

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.

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.

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

We will be evaluating the impacts of extended producer responsibility for packaging in future years through a four nation evaluation of the policy. The evaluation is being led by Department for Environment, Food and Rural Affairs and will run from
2024-2029.

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.

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.

An efficient waste management service is defined by the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 as a waste management service where disposal costs are as low as reasonable possible, taking into account the waste management service provided by a local authority, and any other factors specific to that authority, or to the area in relation to which it exercises its waste management functions, which in the opinion of PackUK (the EPR scheme administrator) are likely to affect its disposal costs.

Effectiveness assessments of local authorities waste management services are carried out by PackUK. The assessment of whether a local authority is running an effective waste management service for household packaging waste will include the amounts of household packaging waste managed, and the proportions recycled, recovered or disposed of. It will also account for local authority specific factors including population density, accessibility, deprivation, and government policies in each nation, as well as other relevant factors. Metrics will be agreed between PackUK and local authorities.

If PackUK determines that a local authority is not providing an effective waste management service, they will give notice to the local authority and work with them to determine how the services could be improved. Only if a local authority is not doing everything they can be reasonably expected to do to improve its waste management service and has no mitigating circumstances, could they then be subject to a deduction of their payment up to 20%.

Effectiveness assessments can be brought in from 2026 if sufficient data is available to make assessments, but must be brought in by 2028.