Local Government Payments for Packaging: Methodology Behind the Figures
News Article: Understanding the 2025-2026 Extended Producer Responsibility (EPR) Payments for Packaging
The UK government has released guidance for Extended Producer Responsibility (EPR) payments to local authorities (LAs) for packaging waste, effective from 2025 to 2026. This new scheme, administered by PackUK, is designed to make producers financially responsible for the cost recovery related to waste packaging collection and treatment managed by local authorities.
The EPR payments are calculated using a weight-based fee structure, with rates set by PackUK. These rates are determined by dividing the overall cost of managing household packaging waste for local authorities by the total weight of household packaging placed on the market by producers during the previous full calendar year (2024). The fees are then expressed as a rate in pounds per tonne for each material type.
For the 2025-2026 period, the base fees for each packaging material are fixed and rounded to the nearest £1 in official publications. The rates published on June 30, 2025, include:
- Aluminium: £266 per tonne
- Fibre-based composite: £461 per tonne
- Glass: £192 per tonne
- Paper and card: £196 per tonne
- Plastic: £423 per tonne
- Steel: £259 per tonne
- Wood: £280 per tonne
- Other materials: £259 per tonne
The local authority payment calculation involves multiplying the tonnage of each packaging material a producer reported having placed on the UK market (via the RPD online portal for 2024 data) by these per-tonne base fees, applying some adjustments. This structure aims to ensure that producers cover the costs related to recycling and disposal that local authorities incur, without including registration fees and costs associated with meeting packaging recycling targets like purchasing Packaging Waste Recycling Notes.
Producers should note that the guidance for EPR payments is to be read in conjunction with the notice of assessment letter provided in June 2025. The notice of assessment letter will be provided to Local Authorities in June 2025, outlining the specific EPR payments each local authority should receive.
This new EPR scheme is a significant step towards a more sustainable and responsible approach to packaging waste management in the UK. By making producers financially responsible for waste packaging collection and treatment, it encourages them to produce packaging that is easier to recycle and dispose of, ultimately reducing the environmental impact of packaging waste.
[1] UK Government's EPR Guidance for Packaging [2] PackUK's EPR Fees for 2025-2026
- The new EPR scheme, govern by PackUK, requires producers to pay a fee for each tonne of packaging material they place on the market, such as aluminum and plastic, as part of the financial responsibility for waste packaging collection and treatment.
- In the finance sector, it's important for producers to be aware that the rates for EPR fees, such as those for aluminum and plastic, are fixed and rounded to the nearest pound, and these rates will be used to calculate the payments they owe to local authorities.
