New estimates of EPR costs issued by Defra

The government has revised its estimate of fees associated with its extended producer responsibility scheme, payable from next year.

The ‘illustrative fees’ are split into ‘lower’, intermediate’ and ‘higher’ costs associated the range of materials covered by EPR plans, including aluminium, plastic and glass.

In the case of each material, the higher estimated cost has reduced compared with initial estimates issued in August, with the exception of wood, which represents less than 1% of packaging on the market, according to Defra.

However, in several cases, the lower estimate has also increased.

Aluminium faced among the greatest possible costs in initial estimates, with the higher fee coming in £655 per tonne of the material produced. The figure has come down to £605 per tonne in the new estimates. 

However, the lower estimate for the material has also increased, from £245 to £320.

Likewise, the higher estimate for plastic has reduced from £610 to £520, while the lower estimate has increased, from £355 to £360.

Defra said the illustrative fees had decreased across all materials, while the size of the range of possible fees had also decreased for all types, excluding wood.

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It said the new estimates were based on updated methodology, using producer reported tonnages from 2023 alongside Defra-modelled local authority costs.

It said it was the same underlying approach and datasets that the EPR scheme administrator intended to use for the final fees from 2025.

It also said the latest figures remained estimates, based on the best available evidence to date.  

The final fees for the first year of EPR are due to be released after 1 April 2025, the deadline for reporting packaging supplied by registered producers in 2024.

Illustrative EPR fees for 2025/26 for all packaging materials under latest estimates issued on 30 September 2024

The first set of estimates, issued on 15 August 2024

Source: Defra