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Packaging extended producer responsibility

Packaging extended producer responsibility (pEPR) is a UK-wide scheme that requires packaging producers to cover the full cost of managing household packaging waste. This includes the costs of collecting, sorting, recycling and disposing of packaging once it is discarded by consumers.

The original scheme began in 1997. Under that scheme, producers paid only a relatively small proportion of the costs of managing packaging once it became waste, with most household packaging waste management costs borne by local authorities and taxpayers. Since April 2025, the UK has operated a revised packaging extended producer responsibility scheme under which producers pay fees based on the amount and type of packaging they place on the market. These fees are used to fund local authorities’ management of household packaging waste, including collection, sorting, recycling and disposal.

What was the original packaging producer responsibility scheme?

The UK’s original packaging producer responsibility scheme was introduced in 1997 to meet obligations under the EU Packaging and Packaging Waste Directive. It required businesses over a certain size to recover and recycle a proportion of the packaging they placed on the market. They demonstrated compliance with the scheme through Packaging Recovery Notes (PRNs) or Packaging Export Recovery Notes (PERNs), issued by accredited reprocessors (for example, recycling plants) and exporters.

The original scheme was heavily criticised. In 2017 the House of Commons Environmental Audit Committee found that producers covered only around 10% of packaging waste disposal costs, with taxpayers funding the rest. It recommended reforms to incentivise better recyclability of products and improve transparency. The National Audit Office raised concerns in 2018 about the lack of checks on exported waste and the risk of fraud. Industry groups, such as the British Plastics Federation, also criticised the scheme for encouraging exports over investment in domestic recycling.

How was the revised scheme developed?

The revised pEPR scheme was developed through a series of consultations between 2019 and 2023. These sought views on policy design, technical aspects of PRNs and PERNs, and draft regulations.

The revised scheme is being implemented under the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024. It is administered by PackUK, a body within the Department for Environment, Food and Rural Affairs (Defra), and operates across all four UK nations. Producers must register with their respective environmental regulator and report to them how much packaging they put on the market.

Each part of the UK will separately evaluate the scheme, with the first review due to be completed by December 2028.

How does the revised scheme work?

Large packaging producers (those that have a turnover of £2 million and handle more than 50 tonnes of packaging per year) must pay fees based on the amount and type of household packaging they supply. These fees are passed to local authorities via PackUK. The government estimates the shift in cost from local authorities to producers will save around £1.2 billion annually. Local authorities are expected to use the funding to improve recycling services and infrastructure. PackUK can reduce funding to a local authority if there is evidence it is being spent elsewhere.

In the first year (2025 to 2026), producers will pay flat base fees per tonne of material. These reflect average handling and recycling costs and are not adjusted for recyclability. For example, the base fee for plastic is £423 per tonne, while for glass it is £192. From the second year (2026 to 2027), fees will be adjusted and based on recyclability, using a red–amber–green (RAG) rating system. Green-rated packaging will incur lower fees, while red-rated packaging will incur higher fees.

How has industry reacted to the scheme?

There has been concern from the metal, food packaging and glass industry associations about how the fees for the scheme have been calculated, saying there is a disproportionate cost burden on heavier materials. The government has said it will assess industry feedback on the issue.

For the purposes of pEPR, producers will need to assess whether their packaging is household packaging or non-household packaging. There have been some concerns about the definition of household/non-household items and whether the rules capture these items correctly. The government has said that it would consider refining the scheme.

How does the scheme interact with closed loop recycling systems?

Closed loop recycling refers to systems where producers collect and reprocess packaging to make new products within the same category. Some food and drink businesses argued that pEPR penalised these systems. In response, the government published further regulations to allow producers of food-grade plastics to offset pEPR fees when recycling in closed loop systems.