The UK government’s packaging scheme administrator, PackUK, has set out its operational plan for 2026–2027, outlining how the next phase of the UK packaging extended producer responsibility (EPR) system will operate.
The plan details funding forecasts, operational priorities and governance arrangements as the UK packaging EPR scheme moves into its second year.
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PackUK expects to recover around £1.56bn in producer fees during the 2026–27 financial year. The funding will support local authorities across the UK in managing household packaging waste collection and treatment, shifting the cost of waste management from taxpayers to businesses that place packaging on the market.
The operational plan is part of the wider extended producer responsibility UK policy introduced under the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024.
Funding outlook for the packaging EPR scheme
The PackUK plan forecasts £1.47bn in chargeable waste disposal costs for local authorities in 2026–27. These costs form the largest element of the funding that producers will be required to cover under the UK packaging EPR scheme.
Once administrative costs and programme delivery are included, PackUK expects the total producer fee recovery requirement to reach about £1.56bn for the year.
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By GlobalDataThe scheme entered its first operational year in 2025–26. PackUK previously projected payments of around £1.44bn to local authorities, with producers invoiced roughly £1.46bn to fund waste management and administration.
Under the UK packaging EPR framework, large producers — typically businesses with annual turnover above £2m that handle more than 50 tonnes of packaging — must report packaging data and pay fees linked to the volume and material type of packaging they supply.
Governance and operational delivery
The operational plan sets out how PackUK will manage the scheme on behalf of the four UK governments. Responsibilities include calculating producer fees, collecting payments and distributing funding to local authorities.
A key step during 2026 is the appointment of a producer responsibility organisation (PRO). This body will carry out several operational functions for the scheme administrator, including communications, operational support and development of technical methodologies.
The plan also outlines a governance framework involving representatives from the four UK administrations and advisory groups that provide technical and strategic input. These groups will support decisions on areas such as recyclability assessment methods and operational performance.
PackUK will continue developing the digital reporting and payment system used by producers to submit packaging data and receive fee calculations.
Data improvements and recyclability-based fees
The operational plan identifies improvements to data management as a priority for the next phase of the packaging EPR rollout.
PackUK plans to introduce a cut-off date of 1 May 2026 for local authority data submissions relating to the 2026–27 financial year. Data received after this deadline will normally be incorporated into the following year’s calculations. The change is intended to provide greater certainty when calculating producer fees.
The scheme administrator also plans a more structured timetable for recalculating producer obligations during the year. Initial liability notices are expected to be issued in July 2026, followed by recalculations later in the cycle.
From the second year of the scheme, disposal fees will also begin to reflect recyclability assessments under the Recyclability Assessment Methodology (RAM). Packaging that is more difficult to recycle will face higher fees, while materials assessed as more recyclable will attract lower charges.
The UK packaging EPR scheme forms part of the government’s broader waste strategy aimed at improving recycling rates and increasing the responsibility of producers for the environmental impact of packaging.
