False recycled content claims undermining plastic tax

Plastics resource efficiency and recycling charity calls for urgent reforms to address enforcement issues and ensure the tax effectively incentivises the use of recycled content.

Plastics recycling charity RECOUP is calling for urgent reforms to the UK’s Plastic Packaging Tax to address enforcement issues and ensure the tax effectively incentivises the use of recycled content.

In a new statement, the charity highlights weaknesses in the current system, which have emerged since the tax was introduced in April 2022.

The tax, currently set at £217.85 per tonne, applies to plastic packaging placed on the UK market that contains less than 30 per cent recycled content. While intended as an environmental measure, RECOUP has identified significant issues with the tax's implementation and effectiveness.

The charity's main concern is the lack of enforcement and verification, particularly for imported packaging.

According to RECOUP, many packaging producers are claiming to meet the requirements without proper oversight. In some cases, packaging labelled as containing recycled contents includes materials that are technically impossible to recycle or uses the term 'pre-consumer' material that may not include any recycled content at all.

As a result, UK recyclers are being undermined by false claims about recycled content. This not only distorts the market but also deprives HMRC of potential revenue from packaging that should be taxed.

Steven Morgan, Head of Policy and Infrastructure at RECOUP, said: "An incentive to include recycled content, even if it has to be a tax, is a force for good as long as it's properly enforced. However, the UK imports around half the plastic packaging it places onto the market, and this includes packaging with claims of recycled content.

"Lack of enforcement is increasingly making the UK recyclers commercially unviable due to having to compete with cheap imports of virgin packaging and packaging with recycled content from countries with significantly lower cost base and greater access to material."

To address these issues, RECOUP is calling for a review of the Plastic Packaging Tax, including the introduction of a stricter enforcement framework to verify content claims. The charity also recommends increasing the recycled content threshold beyond 30 per cent to further incentivise the use of recycled materials.

RECOUP suggests aligning the tax with packaging Extended Producer Responsibility (EPR) and incorporating recycled content as part of the eco-modulation framework, providing a more holistic approach to the environmental impact of packaging.

In addition, RECOUP is urging for an urgent review and overhaul of the Packaging Recovery Note (PRN) system. The current PRN system, they argue, does not provide the necessary stability or targeted funding required to support plastic packaging formats most in need.

While RECOUP advocates for stronger oversight, the charity emphasises that any new enforcement and verification measures should not create unnecessary administrative burdens for businesses.

With both the Plastic Packaging Tax and packaging Extended Producer Responsibility (pEPR) measures placing significant demands on plastic packaging producers, any future framework should be streamlined and avoid adding further complexity.

Morgan added: "If these false claims, particularly from imported material continue, we could see a collapse of the plastic packaging recycling system in the UK as we know it, and urgent action is needed."