I shall continue to try to cover noble Lords’ questions and comments.
The noble Lord, Lord Roborough, asked about compliance and guidance. New guidance will be published to help online marketplaces understand the new obligations; it will, I hope, help with compliance if there is clear guidance on what the expectations are. This will include guidance on the transitional arrangements so that online marketplaces understand their obligations in respect of the data that they submit after the regulations come into force in 2026. We are looking at doing this to make sure that people are clear on what their responsibilities are and to increase compliance with the regulations.
Costs were asked about. The impact of the policy means that online marketplaces—the producers—will be liable for end-of-life costs, as I explained in my introduction. Currently, that obligation is supposed to be met by overseas sellers, but there is a high level of non-compliance. This again comes back to compliance. The new obligations on online market producers therefore represent either a cost transfer from their overseas sellers or a fairer reallocation of costs that currently fall disproportionately on UK businesses. We think that these costs are likely to be passported back to overseas sellers via their contractual arrangements with their online marketplaces. The new costs are, therefore, related primarily to familiarisation costs; we estimate that they will be between £1,014 and £3,926, which is quite precise, depending on the size of the business.
The noble Earl, Lord Russell, asked about the circular economy strategy and how this measure will fit into that. The strategy and the road maps are designed to create a future where we keep our resources in use for longer; where waste is reduced; where we accelerate the path to net zero; and where we see more investment in critical infrastructure. Within the scope of the circular economy strategy that we are developing, we will also develop a long-term road map for reforming all the different key sectors. Electricals is one of the sectors for which we are going to develop a road map; that will set out a number of short-term, medium-term and long-term interventions to make the sector more circular. We are planning to publish that circular economy strategy in the autumn, after which it will go out for consultation. The noble Earl may be interested in looking at that when it is out.
The noble Baroness, Lady McIntosh, mentioned enforcement in the first place. The WEEE regulations are enforced by the Environment Agency and by its equivalents in Northern Ireland, Scotland and Wales because, obviously, this matter is devolved. They will need to ensure both that online marketplaces are registering with the producer compliance scheme, as I explained, and that they are submitting the data. Again, that data will enable us to ensure that compliance is being met and, where it is not, to enforce. Similarly, the producers of vapes and other similar products will also need to submit data to the Environment Agency on the amount of products that they are placing on the market in the new category, which has been discussed.
The noble Baroness, Lady McIntosh, talked about timing and the noble Earl, Lord Russell, talked about timescales. Following the consultation by the previous Government, which took place in the first half of last year, both measures were supported: 87% supported our measures on online marketplaces and 91% were in favour of the proposal on the new category for vapes, which is pretty conclusive. Because of that, we are bringing the legislation forward now so that the changes can be made ahead of the compliance year next year; we thought that, because there was so much support and it is such a problem, it was important to move forward quickly.
Resources were also mentioned—and here is my brief, as if by magic. We are working very closely with our regulators to ensure they have all the necessary resources they need. I believe strongly that there is no point in bringing in legislation if you cannot enforce it, and you cannot enforce it if you do not have the resources. An example of this is that we have already provided £10 million to trading standards for vape and tobacco enforcement. We are taking that very seriously.
The noble Baroness, Lady McIntosh, asked when the obligations are going to come into force. They would come into force 21 days after they are made, which, if approved by both Houses, we would expect to be later on this summer, or potentially in the autumn, but we are hoping to do this quite quickly. That would mean that they would pick up the financial obligation in the 2026 compliance period. They would be required to pay the registration fee to the producer compliance scheme when they join on 15 November, as I mentioned earlier. We think that most of the schemes would look to spread the costs throughout the year, and many would also likely invoice their producer members on a quarterly basis.
The new obligations for producers were mentioned, particularly the new category 7. As we have heard, for vapes and similar products, we are creating this new electronic and electrical equipment category in Schedule 3 to the regulations. We took that decision because it is not right for vapes to be currently categorised as toys, leisure and sports equipment. We thank noble Lords for their support for that decision. The creation of the new category is to ensure that producers of vapes and other similar products pay fairly for the treatment, recovery and environmentally sound disposal of the goods they place on the market. Again, the reporting of the data under the new category will kick in as soon as the regulations have come into force. This new category, of course, is particularly aimed at:
“Any device … intended to be used for the consumption of tobacco products, nicotine or any substance containing nicotine, non-nicotine liquids, herbal smoking products, vaping substances, nicotine-containing vapour or any other such products”
or electricals. It covers the whole broad spectrum. The examples of the devices will be in Schedule 4 to the regulations, which I stress is non-exhaustive.
The noble Baroness, Lady Bennett, talked about the single-use vapes ban and its effectiveness. It came into force, as noble Lords know, on 1 June. Obligations for review are set out in the legislation and include a review of enforcement and civil sanctions as soon as practicable after three years and a post-implementation review at least every five years. We are currently collecting the baseline data on the wholesalers and retailers of single-use vapes in England to support future assessments. Also, the Department of Health and Social Care monitors the current rates of smoking and vaping through various surveys, including the periodic survey on smoking, drinking and drug use among young people and the Action on Smoking and Health annual surveys. We will continue to monitor the effects of this legislation within that.