UK retailers to pass on “majority” of EPR costs to shoppers

Core Viewpoint - UK retailers are expected to pass on the majority of costs from the new Extended Producer Responsibility (EPR) legislation to consumers, which is projected to cost the industry billions [1][2]. Group 1: Financial Impact - More than 80% of the costs from the EPR regulations are likely to be transferred to consumers [1]. - The EPR scheme is anticipated to add 0.5% to food inflation, which currently stands at around 5% [2]. - The retail industry faces an additional £5 billion ($6.73 billion) in employment costs due to higher national insurance and rising wages [3]. Group 2: Compliance and Administrative Burden - 85% of retailers reported a significant increase in the administrative and compliance burden due to EPR [3]. - Retailers are making efforts to use more recyclable materials and reduce packaging volume, with 85% intending to increase sustainable packaging and 78% aiming to decrease total packaging [4]. Group 3: Government and Regulatory Requests - The British Retail Consortium (BRC) is urging the UK government to clarify how consumers and the environment will benefit from the EPR [4]. - The BRC requests that the government implement legal restrictions to ensure EPR funds are used solely for local recycling operations and improvements [5]. - Concerns are raised about the transparency and effectiveness of EPR fund usage, as it could become an additional burden without tangible benefits for consumers or the environment [6].