Packaging Extended Producer Responsibility (pEPR) is reshaping how packaging waste is managed in the UK. Officially revised in April 2025, the new scheme places the full financial burden of household packaging waste management on producers, replacing the older system where they paid only a fraction of the costs.

This fundamental shift is designed to improve recycling outcomes and ensure producers take accountability for the environmental impact of their packaging. Under the new framework, producers are now responsible for funding the collection, sorting, recycling, and disposal of packaging once it becomes waste. Although local authorities still handle the actual recycling services, they now receive direct funding from producers via the pEPR mechanism, administered by PackUK, a new body under the Department for Environment, Food and Rural Affairs (Defra).

Background and Drivers for Reform

The previous packaging responsibility scheme had long drawn criticism. Established to meet EU Packaging and Packaging Waste Directive goals, it used Packaging Recovery Notes (PRNs) and Packaging Export Recovery Notes (PERNs) to track compliance. However, by 2017, the House of Commons Environmental Audit Committee found producers were covering just 10% of disposal costs, with taxpayers bearing the remainder. Further scrutiny from the National Audit Office highlighted concerns around fraud, lack of oversight on exports, and minimal support for domestic recycling infrastructure.

“The system rewarded exports and lacked checks,” noted a 2018 report by the NAO, leading to widespread calls for reform.

Between 2019 and 2023, the government held consultations to develop a more equitable and effective system. These consultations shaped the new Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024, now in force across England, Scotland, Wales, and Northern Ireland.

Fee Structure and Implementation

The pEPR scheme introduces a two-tier approach to fees. In the first year (2025–2026), producers pay flat base rates per tonne of packaging material:

• Plastic: £423/tonne
• Glass: £192/tonne

These fees reflect average processing costs without considering how recyclable the packaging is. From 2026–2027, fees will be linked to a Red-Amber-Green (RAG) system. Materials rated green—those easiest to recycle—will incur lower fees, while red-rated packaging, typically hard to recycle or contaminant-heavy, will attract higher costs. This shift is designed to incentivize eco-design and recyclability.

Industry Concerns and Definitions

Not all sectors are satisfied. Industry groups representing metal, glass, and food packaging producers argue that heavier materials unfairly bear higher costs, regardless of recyclability. There is also confusion around the classification of household vs. non-household packaging, which affects a producer’s obligations under the scheme. In response, the government has signaled willingness to refine definitions and fee structures based on industry feedback.

Closed Loop Recycling and Future Adjustments

A notable criticism of the new system comes from companies using closed loop recycling—a circular model where materials like food-grade plastics are reprocessed into the same type of packaging. These businesses argue that pEPR fees don’t sufficiently recognize their sustainability efforts. In response, Defra has proposed fee offsets for closed-loop systems, particularly for food-grade plastics, with additional adjustments anticipated.

Looking Ahead

The revised pEPR scheme is a significant policy move aimed at shifting financial and environmental responsibility onto packaging producers. While its long-term impact remains to be seen, the first scheme evaluation is scheduled for December 2028. If implemented and monitored effectively, pEPR could drive transformative changes in packaging design, recycling systems, and corporate responsibility in the UK packaging landscape.