As part of phase 2 of EPR implementation, from 2025 onwards EPR household fees will be adjusted according to modulating factors aimed to incentivise packaging producers to use materials with a lower environmental impact.
Defra’s long-term goal with the modulated fee framework is to optimise the packaging supply chain, improve recycling rates and lower the environmental impact of packaging. The modulations will be based on an assessment of recyclability where the easier to recycle a material is, the lower the Local Authority Fee it will incur. However, for later revisions of EPR, Defra will be considering the wider environmental implications of packaging materials in the modulation system such as carbon impact.
Defra are intending to release the material base fees in June and plan to release the full list of modulating factors by the end of 2023.
Since the first Extended Producer Responsibility for packaging consultation in 2019 there have been many changes to the reform with Defra taking on board industry feedback in many areas. With the modulated fee structure yet to be finalised, there is still time to have your say.
Defra aim to seek views on hard-to-recycle materials that could incur a higher fee under the modulated system, as well as working with industry to more robustly assess which materials to modulate and by how much to inform further research.
To engage industry, Defra will be holding modulated fee focus groups and stakeholder forums as well as creating a survey to gather views and feedback. Defra will share this survey with stakeholders shortly, in the meantime we encourage you to take part in the Business Readiness survey using the link below.