
UK packaging producers are set to face higher and more differentiated waste management costs from 2026 after PackUK published indicative fees for the second year of the country’s Extended Producer Responsibility (EPR) scheme. The fees, released in December 2025, provide businesses with an early indication of what they are likely to pay in the 2026/27 scheme year, when charges will begin to vary according to the recyclability of packaging materials.
Under the EPR regime, which came into effect for waste disposal costs from April 2025, producers are required to cover the full net cost of collecting, sorting, recycling and disposing of household packaging waste. The scheme shifts the financial burden away from local authorities and taxpayers and onto the companies that place packaging on the UK market.
The Year 2 indicative fees introduce modulation based on the government’s recyclability assessment methodology. Packaging assessed as harder to recycle will attract higher fees, while packaging that meets recyclability criteria will pay less. PackUK said the figures are illustrative and are intended to help producers plan ahead rather than represent final charges, which will be confirmed closer to the start of the 2026-27 financial year.
According to the published estimates, base fees for most packaging materials are expected to rise compared with the first year of the scheme, reflecting updated cost modelling and reported packaging volumes. Plastics remain among the most expensive materials, while paper, card and glass attract lower base fees. Fees for packaging assessed as less recyclable are set at a premium above the base rate, while more recyclable packaging is discounted.
Industry groups have warned that the introduction of modulated fees could significantly increase costs for some producers, particularly those using complex or hard-to-recycle materials, and have called for clarity and stability as the system beds in. PackUK has said the level of modulation is expected to increase in later years to strengthen incentives for recyclable packaging design.
Final EPR waste disposal fees for the 2026-27 year will be calculated using packaging data reported by producers and are due to be published in 2026.


