UK companies have warned the upcoming extended producer responsibility (EPR) scheme for packaging, which looks to fund recycling, will raise prices of many everyday items.

The packaging tax, which will roll out next year, looks to move the cost of household recycling from councils onto the companies using the packaging, The Guardian reported.

Some products expected to be pushed up in price include soft drinks, beer, and small kitchenware appliances such as toasters and kettles.

Last month, the Department for Environment, Food and Rural Affairs (Defra) gave its “first estimate” of the rates that would be charged for each tonne of material, with the rate for glass spanning £130 to £330 a tonne.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

In a statement, Defra said the scheme was a “vital first step in cracking down on waste as we move towards a circular economy, and we have always been clear these fees are our initial estimates”.

“We are continuing to meet with the glass industry to discuss more workable approaches, including for how we calculate the cost of glass.”

Belvoir Farm managing director Pev Manners told The Guardian that the change is estimated to cost the business £850,000 next year, equivalent to “100% of our profits”.

He said: “At retail we think the EPR will put between 18p and 25p on a 750ml bottle because the grocers will just see it as part of the cost, add their profit margin and then put VAT on top.”

In a joint letter, the British Beer and Pub Association, Independent Family Brewers of Britain, Campaign for Real Ale, and Society of Independent Brewers and Associates also estimated that it would add 3p to 7p on each of the 3.2bn bottles of beer sold in the UK every year.