PackUK has published a series of documents central to the UK’s Extended Producer Responsibility for Packaging (pEPR) scheme, confirming 2025 base fees, releasing the first Fee Modulation Policy Statement, setting out a regulatory position on recyclability assessments, and outlining an interim strategy for the scheme.
The announcements mark a key step towards delivering the UK’s circular economy and incentivising sustainable packaging choices.
Confirmed base fees aim to provide certainty to producers
PackUK has finalised the 2025 base fees for the pEPR scheme, offering producers clarity ahead of the first invoices due in October 2025.
Compared to illustrative fees published last December, most confirmed fees have decreased, with glass fees reduced by 20 per cent. The reductions reflect strong industry compliance with reporting obligations and collaborative work between PackUK and regulators to verify reported data.
Fees were calculated using packaging tonnage figures reported for 2024 and local authority waste management costs, with the methodology tested with input from producers, compliance schemes, and councils.
The confirmed fees are seen as a milestone in supporting the UK’s goal to improve recycling rates and reduce packaging waste.
A PackUK webinar focused on base fees will be held on 10 July 2025, offering producers a chance to understand the implications for their businesses.
New policy to adjust fees based on recyclability
The first Producer Fee Modulation Policy Statement published by PackUK sets out how fees will vary from 2026 depending on the recyclability of packaging.
Under the plan, producers using packaging rated highly recyclable under the Recyclability Assessment Methodology (RAM Green) will see fees decrease, while those using poorly recyclable packaging (RAM Red) will face higher fees.
The modulation factors will escalate over three years, with multipliers of 1.2, 1.6, and 2.0 applied in consecutive years.
This approach aims to create financial incentives for producers to adopt more recyclable packaging while maintaining the overall revenue needed to fund improvements to the UK’s recycling infrastructure.
Special provisions are included for medical packaging where recyclability options are limited by regulations.
PackUK stated that the policy aligns with the ‘polluter pays’ principle and supports efforts to drive more sustainable packaging design, with research planned to explore integrating additional sustainability criteria into future modulation.
Regulatory statement offers flexibility during transition period
Responding to concerns from industry about the workload of recyclability assessments, environmental regulators across the UK have issued a Regulatory Position Statement (Regulatory Decision in Wales) giving producers more flexibility for 2025 reporting.
While producers must still report packaging tonnages for the first half of 2025, recyclability assessments for this period can be based on data collected in the second half of the year.
The initial modulation policy covers assessment years 2026/27 to 2028/29, during which fee adjustments will be based solely on recyclability.
A review is planned after three years to consider adding other sustainability measures to the modulation framework.
Interim strategy sets foundation for long-term packaging reforms
PackUK’s interim strategy, approved by officials from all four UK nations, outlines short-term priorities and preparations for the full rollout of the pEPR scheme.
The strategy sets out plans for appointing a Chief Executive Officer and Chief Strategy Officer, as well as advancing work on areas such as packaging reuse and the Local Government Outcomes Framework for England.
A comprehensive long-term strategy is expected later in 2025, including the appointment of a Producer Responsibility Organisation by March 2026.
The government projects that the pEPR scheme will help create up to 25,000 jobs and attract over £10 billion in recycling infrastructure investment over the next decade, underpinning wider efforts to improve the UK’s recycling systems and reduce packaging waste.
Producers and stakeholders can find further details and guidance on the gov.uk website.
