A Defra spokesperson said that analysis has found that the mandatory takeback scheme would “not have the intended impact on boosting recycling rates and reducing litter”.
Plans for the scheme were inherited by the Labour government from the previous Conservative administration.
Defra said that the scheme was set to cost the government and industry £52 million – which it said represented an “unnecessary burden” on business.
A spokesperson from the department added: “This government will end our throwaway society and move us to a future where we keep our resources in use for longer and waste is reduced, while accelerating the path to net zero.
“This decision will allow businesses to focus on implementing our other collection and packaging reforms, which will support 21,000 jobs and stimulate more than £10 billion of investment in recycling capability during the next decade.”
Commenting on the development, David Gudgeon, head of external affairs at Reconomy Connect, said: “With more than three billion cups going to waste every year, according to research by Reconomy, and the current legislative landscape being fragmented, we had been anticipating the planned introduction of the mandatory takeback scheme to boost the recycling rates of cups and reduce waste.
“This announcement is therefore somewhat surprising, and we look forward to engaging with Defra to understand their analysis that led to this decision.
“Given this policy isn’t going to progress, the responsibility will now fall back to businesses and the waste industry who will need to work more closely together to come up with innovative solutions to build on the industry’s progress to date, lift recycling rates and create a more circular and sustainable future for our communities.”
Scotland recently closed a consultation on its own single-use cup takeback scheme which proposed introducing a charge of around 25p on all single-use cups for both hot and cold drinks, with a small number of exceptions for settings like schools.
The Federation of Independent Retailers (the Fed) called for improved communication from the Scottish government ahead of the introduction of the mandatory scheme and said that it is “of the utmost importance that there is at least a six-month notice period” ahead of the proposed changes.
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