The UK has approved an update to its packaging Extended Producer Responsibility rules, taking effect on 1 January 2026. The changes unlock fee relief for brands that can prove closed‑loop, food‑grade plastics recycling, tighten definitions, and formalise producer involvement in running the system across all four nations.

These amendments build on the 2024 regulations and the creation of PackUK, the UK‑wide scheme administrator launched in January 2025 to set fees, collect payments and reimburse local authorities. The policy intent is unchanged: shift costs from taxpayers to the companies that place packaging on the market and improve recycling outcomes.

The centrepiece is a clearly defined route to credit “closed loop packaging waste” against disposal fees. To qualify, the waste must be household food‑grade plastic packaging originally supplied by the same producer on or after 1 January 2024; it must be collected directly from consumers by or on behalf of that producer; kept segregated from other materials except identical packaging from that producer; and sent to a single reprocessor. Evidence from an accredited reprocessor or exporter is mandatory, confirming it was recycled into food‑grade materials or articles.

“Food grade” follows long‑standing food‑contact rules: materials must meet Commission Regulation (EU) No 10/2011 and, for recycled plastics, the standards set out in Commission Regulation (EC) No 282/2008. In practice, that means loops such as bottle‑to‑bottle PET or HDPE milk bottles where the output is demonstrably safe to touch food again.

Off‑setting only works if producers pay an additional registration charge (£2,548) for the relevant year and hold the right paperwork. The tonnage off‑set cannot exceed what the producer reported as supplied, and aggregating across more than one reprocessor is tightly limited. Reporting closed‑loop tonnage without paying the charge becomes an offence.

A second practical tweak matters to designers: paper or board packaging that contains plastic layers totalling no more than 5% of the item’s mass can now be classified as “paper or board” rather than a fibre‑based composite. Expect attention on cup and tray liners, windows and coatings as brands reassess where thin plastic barriers are truly necessary. Evidence is required.

Modulated fees also gain a new signal: whether the amount of packaging used is “no more than reasonably necessary” for its purpose. That steers costs towards right‑sized packs and away from excess material. WRAP’s latest Plastics Pact update shows how redesign can already save money in modulated fees, highlighting a £6.2m reduction secured by members through packaging optimisation.

Rules around who is the liable producer are clarified. After the first supply, only a seller can become a producer by further supply, and if a new component such as a label is added, producer status for that component is reassessed. Where multiple brands appear on filled packaging, liability sits with the brand making first supply or, failing that, with the brand occupying the largest share of the external surface.

Complex corporate changes now come with clear obligations. After a merger, the new company must register on time, aggregate supplied tonnage from all merged entities, and pick up any continuing obligations or unpaid fees. Brand or business transfers trigger fresh registration, data resubmissions for the current and previous year, and a reallocation of recycling obligations from the seller to the buyer.

Administration and enforcement tighten too. PackUK can identify and bill previously unassessed liable producers up to four years after an assessment year-or up to ten years where non‑compliance caused delays-and charge interest. Reprocessors must not issue PRNs or PERNs twice for the same waste. These measures aim to improve integrity and value for money across the system.

Charities are no longer blanket‑exempt from the 2024 regime; they remain exempt from producer responsibilities and EPR fees but face phased‑in duties as reprocessors/exporters from 1 January 2027, with offences for operating without registration not applying to charities until then.

Deposit return interplay is clarified by exempting packaging that is, or would be, a deposit item, including where a low‑volume line exemption applies. That prevents double‑charging when drinks containers move under future deposit rules, while retaining EPR obligations for the rest of a brand’s portfolio.

Key dates are close. By 28 January 2026, producers wishing to count historic closed‑loop tonnage must pay the one‑off charge set in the transitional schedule and, where eligible, submit amended 2024/2025 reports; 1 April 2026 is the deadline for other required report amendments. Keep all underlying evidence for seven years.

For citizens and councils, the decision framework for local‑authority payments is widened: when PackUK assesses disposal costs it must now “facilitate achievement of the environmental effects” set out in policy. Devolved governments backed a UK‑wide approach; Wales, already ranked second globally for municipal recycling, expects quality gains from consistency.

The opportunity is real but hinges on quality feedstock. WRAP reports effective plastic packaging recycling at around half and average recycled content at 28% (51% in PET bottles); RECOUP’s latest analysis still finds only about two in five household plastics collected at kerbside. Closed‑loop credits will favour those who can raise clean returns through take‑back or service partnerships.

What should producers do now? Re‑baseline materials to test the 5% plastic threshold in paper/board lines; model fee outcomes under the “no more than necessary” test; line up accredited reprocessors with food‑grade outputs; design practical consumer return routes where brand ownership is clear; and get registration and evidence in order ahead of the January and April deadlines. PackUK’s role continues to expand, including scope to appoint a not‑for‑profit Producer Responsibility Organisation with formal duties, giving industry a structured voice in delivery.