Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, whether her Department has made of an assessment of the extent to which the 4% impairment fee has contributed to (a) financial strain and (b) non-payment among obligated producers.

Incorporating impairment provisions for bad debt in a cost recovery scheme is an expected consideration of Government, as detailed in Managing Public Money guidelines, and is common practice when setting fees. Whilst Notice of Liabilities issued under the Extended Producer Responsibility scheme are due for payment after 50 calendar days, liable producers have the facility to pay in quarterly instalments. These impairment provisions can only be used for specific purposes and will be subject to regular scrutiny and review. To minimise impairment and provide transparency, PackUK intends to collect debt rigorously but fairly and will review the impairment provision at least quarterly. Where the impairment provision isn’t fully utilised liable producers will be given a refund.