Hospitality Industry Seeks Relief: Calls for Exemption from the Extended Producer Responsibility Scheme

In a bid to mitigate increasing costs and regulatory pressures, the hospitality industry is urging policymakers to reconsider their inclusion in the Extended Producer Responsibility (EPR) scheme. This scheme, aimed at shifting the burden of packaging waste from taxpayers to producers, has been criticized by hospitality businesses for imposing a double penalty—forcing them to pay both EPR charges and commercial waste disposal fees for the same packaging.

Background: What is the Extended Producer Responsibility Scheme?

The EPR scheme came into effect on January 1, 2025, with the goal of making businesses that produce packaging financially accountable for the lifetime costs of their products, including recycling and waste management. The initiative is part of a broader strategy to enhance recycling rates and reduce waste across the UK. However, hospitality operators argue that the current structure of the scheme unfairly categorizes packaging used in their establishments as household waste, despite it being disposed of commercially on-site.

Impact on the Hospitality Industry

The financial implications of the EPR scheme for hospitality businesses are significant. Major players in the industry, including the Azzurri Group, Burger King UK, Fuller’s, Marston’s, Punch Pubs & Co, St Austell Brewery, Stonegate Group, and Wells & Co, have joined forces with UKHospitality to voice their concerns to the government. They are seeking exemptions from the scheme for packaging supplied directly to their venues, which are typically not taken off the premises.

Key Complaints and Requests

1. Double Charging: Businesses are being charged twice—once for EPR and again for commercial waste disposal. This creates an unsustainable financial burden, especially in an industry already struggling with high operating costs.

2. Incorrect Classification: Bottles of beer and wine are classified as household waste, despite never leaving the premises. This contradicts the intention of the EPR scheme, which is to address packaging that ends up in household waste streams.

3. Exemption Request: Hospitality businesses are calling for clear guidelines to identify packaging as non-household waste, which would exempt it from EPR charges. They propose a system allowing suppliers to demonstrate the proportion of packaging used in hospitality settings.

4. Supply Chain Involvement: They suggest involving the supply chain in data-driven solutions to provide clarity on packaging usage and prevent double counting of charges.

The Broader Context: EPR Across Industries

While the hospitality sector is particularly vocal about its concerns, the implications of EPR extend across various industries. The scheme requires businesses that place packaged goods on the UK market to manage the end-of-life costs of their packaging. This includes producers and importers of alcoholic beverages, as well as those in the food and beverage sectors. Small businesses and certain types of producers might be exempt under specific conditions, but larger organizations face significant compliance and financial obligations.

Strategies for Managing EPR Costs

To mitigate the financial impacts of the EPR scheme, businesses are exploring several strategies:

• Packaging Design Changes: Moving towards more sustainable and recyclable packaging materials to reduce fees, which are higher for harder-to-recycle materials.
• Supply Chain Adjustments: Working closely with suppliers to ensure accurate classification and minimize double charges.
• Cost Management: Assessing how costs can be distributed across the supply chain or passed on to consumers.

Conclusion: The Future of EPR in Hospitality

As the hospitality industry continues to navigate the complexities of the EPR scheme, the call for exemptions and clearer policies is growing louder. The sector hopes for a more nuanced approach that recognizes the unique circumstances of hospitality businesses, where packaging is often not distributed as household waste. With ongoing dialogue between industry stakeholders and policymakers, there may be opportunities for adjustments to the scheme that better align with its original intent.

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Keywords Integrated:

• Extended Producer Responsibility (EPR) Scheme
• Hospitality Industry
• Packaging Waste
• Double Penalty
• Commercial Waste Disposal
• Household Waste Classification
• Sustainable Packaging
• Recycling Rates
• UKHospitality