The cost of a 12-pack of beer could rise £1 next month as new Government rules come into force. Retailers and manufacturers will be charged for every tonne of packaging they produce under rules coming into force in April.
And the cost of paying for recycling – currently covered by local authorities – is likely to be directly passed ion to consumers, experts say. Companies will pay more for plastic waste by weight – as it can be harder to dispose of or recycle – but because glass and plastic are heavier the total cost of the materials used in drinks like beer and wine could be much higher.
According to the B ritish Beer and Pub Association (BPPA) the new charge will add 5p to every 330ml bottle and 7p to every 500ml bottle.
BBPA spokesman Emma McClarkin told The Sun: “These new fees could push up the price of iconic British beers which will be a massive blow to brewers, pubs, and punters. UK brewers make an average of just 2p profit per bottle of beer, so they’ll have no choice but to pass on extra painful costs to the consumer or possibly end up being forced to leave the market entirely.”
The BPPA says the move will also increase the costs for pubs who will have to ‘pay twice’ top get rid of packaging, cans and bottles – a potential extra cost of £60million.
The Extended Producer Responsibility (EPR) for Packagingrequires businesses that manufacture, import, or sell packaged goods bear the full costs of managing packaging waste. This includes expenses related to the collection, recycling, and disposal of packaging materials. The objective is to incentivise producers to design more sustainable packaging solutions and reduce waste at the source.
The new rules, announced in 2023, follow thePlastic Packaging Tax launched in 2022. Thatapplies to plastic packaging components produced in or imported into the UK that contain less than 30% recycled plastic. The tax rate was initially set at £200 per tonne and has been subject to annual increases to encourage the use of recycled materials in packaging.
In October 2023, the UK government enforced a ban on specific single-use plastic items, including plastic plates, cutlery, straws, balloon sticks, and cotton buds. This measure aims to reduce plastic pollution and encourage the adoption of reusable or biodegradable alternatives.
The UK government has announced plans to implement a Deposit Return Scheme (DRS) for drink containers to encourage recycling. However, as of April 2024, the implementation of the UK-wide DRS has been delayed until October 2027.