Charging for single-use disposable beverage cups

The purpose of the planned charge is to reduce our consumption of single-use disposable beverage cups through establishing a robust system which leads to widespread acceptance and increased use of reusable cups; while creating an opportunity for innovative approaches to reusable cup schemes to develop.

The intention is to make the charge as effective and feasible as possible, while keeping administrative burdens to a minimum in line with the principles of our New Deal for Business and to achieve this, the approach we have proposed is modelled on that already used for the single use carrier bag charge, which is familiar to both suppliers and consumers.

A summary of the proposed scheme is provided below and more details on key considerations and questions are provided in the latter part of this consultation.

While what is presented below is the proposed approach, based on the work of an independent expert panel and informed by advice from an advisory group that includes a wide range of stakeholders, we would welcome your views on the principle of the charge and on the specific proposals.  

Some of the questions are more suited to be answered by suppliers of drinks than other organisations or individuals but we welcome all responses.

Summary of proposals

• Require all suppliers of drinks in or with single-use disposable beverage cups in Scotland to apply the charge at the point of sale to the consumer when a drink is bought, with a small number of exemptions. This approach allows us to capture nearly all scenarios where cups are provided and creates a transparent approach across all suppliers. 
• The charge will not apply where a drink is free, such as in non-retail hospital and social care settings, or where a drink is supplied in a reusable cup.
• The charge to be applied to all single-use disposable beverage cups, regardless of composition, or type of drink the cup is intended to be used for. This includes single-use cups marketed as ‘biodegradable’, ‘compostable’, or other similar terms. These products remain single-use and should therefore be subject to a charge designed to encourage consumers to move to reusable alternatives.
• Set the minimum charge at £0.25 which is separate to the price of the drink and visible to the customer. Research conducted in 2019 demonstrates that a £0.20 - £0.25 charge presented in this way could encourage behaviour change in 49% of the population. The £0.25 includes any chargeable VAT.
• Exemptions would apply based on purpose or setting, for instance in schools, when a drink is purchased from some vending machines, and settings where bringing and using a reusable cup may not be practical.
• Suppliers will be able to retain reasonable costs for administering the system out of the proceeds of the charge, matching the single use carrier bag model.
• That net proceeds of the charge should be used for the advancement of environmental protection or improvement, or to any other purposes that may be reasonably regarded as analogous.

• Suppliers would be expected to record the numbers of single-use disposable beverage cups they have charged for, the charge paid for them, the amount they are entitled to deduct to calculate the net proceeds (such as the costs to administer the system and VAT), and the net proceeds raised by the charge. This replicates the record keeping system for the single use carrier bag charge and should not be overly onerous to suppliers. Suppliers would be required to provide this information to the enforcement authority on the request of enforcement officers.
• Costs of modifying systems would be considered a reasonable one-off deduction from proceeds. 
• Enforcement will be modelled on that for the single use carrier bag charge. Any supplier failing to charge or to comply with the recording requirements will be committing an offence and liable for a fine on conviction. Local authorities will also have the power to issue fixed penalty notices.

More information can be found in the consultation paper.