UK Government to cover funding gap in Extended Producer Responsibility for packaging (pEPR)
More accurate packaging data revealed a gap in funding originally calculated for the first year of pEPR.
The government will cover this shortfall to local authorities.
PackUK, the current administrators of the scheme, confirms there will be no change to disposal fees for the first year of pEPR, as more accurate packaging data has been resubmitted by producers.
A shortfall in the funding originally calculated for the first year was identified, primarily because of a reduction in tonnages submitted than previously reported.
This situation is provided for under regulations according to Pack UK, and normally would have required a recalculation of producer per tonnage fees.
However, a Pack UK statement recognises pEPR is a significant change in how packaging is managed, and there has been a high number of resubmissions in the first year as businesses familiarise themselves with new requirements.
As a result, the government has agreed to address this shortfall and ensure local authorities receive the funding they were promised according to Pack UK, by closing the funding gap as a one-time measure to help mitigate increasing costs for producers and maintain stability during the first year of the scheme.
Local authorities across the UK will receive the payments they are expecting to invest in improved waste management and recycling services.
This shortfall was believed by Pack UK to have occurred in Year 1 as reporting has progressed. The packaging data underpinning fee calculations has been refined, resulting in producers submitting a lower total tonnage than previously reported.
Pack UK states as familiarity with the scheme grows, the scale of data corrections is expected to reduce significantly in future years.
Furthermore, Pack UK says it is taking steps to improve data stability and prevent late adjustments in future years.
