The notice will indicate estimates for year one of extended producer responsibility for packaging (pEPR).
Defra added that local authorities in Northern Ireland will receive their Provisional Notices of Assessment “in due course”.
Local authorities will also receive details on the approach the Scheme Administrator will adopt for effectiveness metrics in order to assess performance and the approach to evaluation. This will apply once the Scheme Administrator has been formally established.
Defra cautioned that the estimates are subject to further review and adjustment. Any revisions will be communicated in early 2025 ahead of the first payment in November 2025.
Authorities will be able to provide feedback on the Provisional Notice of Assessment, the methodology used for the indicative estimates and the accompanying guidance using a feedback form that will be accessible through a link provided in the email.
Defra is also organising a webinar for December this year to provide a platform for local authorities to discuss the packaging payment estimates for year one. The exact date is yet to be announced.
The department has urged local authorities to participate if they have questions regarding their payment estimates.
Cathy Cook, chair of LARAC, reacted to the news: “It is excellent news that payment details are being communicated today. While this information is welcome, local authorities now need time to understand whether the estimated figures will cover the expected costs of managing this material under the new reforms.
“LARAC also calls on Defra to provide information to Northern Irish authorities on their indicative EPR fees so they can move forward with planning. Local authorities are also responsible for ensuring their data submissions to platforms like Waste Data Flow and the WRAP LA Portal are up to date. Accurate data will enable the government to ensure the fairness and accuracy of payments across the sector. This is just the beginning. While these indicative payments represent the first tangible step, the hard work of implementing the reforms starts now.”
LARAC also expressed disappointment that Northern Irish local authorities are not included within this initial notification of indicative payments due to internal governance delays. LARAC strongly urged Defra and DAERA to collaborate and ensure this information is shared as soon as possible, alongside the outcomes of the “Rethinking Our Resources” consultation held earlier this year.
Jonathan Carr-West, chief executive of the Local Government Information Unit (LGIU), said: “It’s good to have a government that recognises the structural challenges to local government finances and is committed to resolving them and to resetting the relationship with councils. Today’s statement from MHCLG is exactly right to say that it will be a long slog to fix local government finances. This may only be the first step, but it is at least a step in the right direction.
“Before the election, LGIU members were clear about the need for multi-year financial settlements, an end to competitive bid funding and a return to needs based funding allocations. So, we welcome the government’s commitment to moving towards all of those in 2026/27.
“Additional funding in the upcoming financial year may relieve some pressure but it will not stop many councils from moving closer to a financial cliff edge. So it is encouraging to see the government commit to a move away from the established forms of exceptional financial support.
“We know from our research that over the next five years, half of all councils are concerned about their capacity to balance their books. More structured guidance and support is essential. The support framework promised in today’s statement is bound to be tested soon. And, even with these welcomed changes to overall council funding, there will be councils where the changes will not go far enough, fast enough. A focus on reform past 2026/27 must look at the whole system and incorporate reforms to the tax base, expanded revenue options and fully integrated budgets.
“We have consistently urged the government to see local government finance reform, public service reform and devolution as part of a single project, so we welcome today’s statement bringing them together. It’s important however, that form should follow function and structural changes to local government and local governance must be about quality of public service provision and democratic engagement not just narrowly defined “efficiency”. We look forward to seeing more about this in the forthcoming devolution white paper.”
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