After an initial panic, where it was feared that obligated producers would be re-invoiced for higher disposals fees for year 1 of the Extended Producer Responsibility for packaging (pEPR), it has now been confirmed by PackUK via a GOV.UK News Story that there will be no change and fees will remain as outlined in producers’ Notices of Liability in October 2025.

No changes will be made to the disposal fees for Year 1, as outlined in Notices of Liability from October 2025. A shortfall in funding was identified due to lower reported packaging tonnages, which is addressed by the UK government covering the gap to ensure local authorities receive promised funding. This intervention aims to stabilize costs for producers during the transition to the new scheme.

Reasons for the Shortfall

The transition period revealed discrepancies in packaging data, leading to lower tonnage reports. Producer fees are calculated based on total costs divided by total tonnage, resulting in the funding shortfall.

Improvements to the Scheme

Future years are expected to see reduced data corrections as businesses become more familiar with the requirements. PackUK plans to enhance data stability by adjusting submission deadlines and using Year 1 data for better guidance.

Importance of the pEPR Scheme 

The scheme is projected to secure £1.4 billion for local authorities in the 2025/26 financial year, aimed at improving waste management and recycling services. Local authorities have already allocated these funds for various infrastructure improvements, demonstrating the scheme's significant impact on recycling efforts.