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

To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions her Department has held with industry since Extended Producer Responsibility invoices were issued to assess the impact of the 4% impairment fee on business cashflow and profitability.

Defra holds regular conversations with industry regarding all aspects of the pEPR scheme, including the impairment provision within notices of liability. 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. Where the impairment provision isn’t fully utilised liable producers will be given a refund.