The Government has signed off the next set of packaging EPR changes. From 1 January 2026, closed‑loop food‑grade plastics can lower a brand’s disposal fees-if the firm can prove the loop is real. The Statutory Instrument (SI 2025/1369), signed by Parliamentary Under Secretary of State Mary Creagh on 17 December 2025, also introduces tougher evidence rules, updated charges and clearer product categories.

Closed loop has a tight definition. Only household packaging that is food‑grade plastic, was originally supplied by the same producer on or after 1 January 2024, is collected directly back from that producer’s customers without mixing, and is recycled by a single accredited reprocessor counts. Crucially, the output must be recycled into food‑grade materials that meet the standards set in Commission Regulation (EU) No 10/2011 and, for recycled plastics, No 282/2008.

To claim the offset, large producers must pay an additional £2,548 registration charge for the relevant year and keep a robust audit trail for seven years. Evidence must come from an accredited reprocessor or exporter and show the weight collected, that the material meets the closed‑loop definition, and that it was recycled into food‑grade outputs. Reporting closed‑loop tonnages without paying the additional charge becomes an offence.

Fee calculations change too. The scheme administrator will subtract verified closed‑loop tonnages from a producer’s household packaging tonnage when calculating disposal fees. If a business has not paid the additional charge, no closed‑loop tonnage will be off‑set. Where a business should have registered but did not, the administrator can estimate data and raise a late assessment up to four years after the relevant year-or up to ten years where non‑compliance blocked timely calculation-with interest added.

The fee modulation signal is sharpened. A new factor allows the administrator to lower fees where packaging uses no more material than reasonably necessary for its purpose. This points brands towards right‑sizing, refill packs and smarter design, rewarding waste prevention alongside recycling.

Material categories are clarified in ways that will matter to invoices. ‘Fibre‑based composite’ now covers paperboard or fibre packs with plastic layers that cannot be separated by hand. But if the plastic layer is 5% or less of the pack by mass, the item may be reported as ‘paper or board’. Expect reclassification of lined cups, sleeves and cartons where evidence supports the 5% threshold.

The rules also tidy up overlaps with deposit return schemes. Any item that is, or would be, a deposit item under a relevant scheme-subject to any low‑volume line exemption-is treated as exempt packaging under EPR. That avoids double‑charging while DRS comes on stream in different parts of the UK.

Charities get a clearer carve‑out. Where a charity is acting as a producer, it is not liable for producer responsibility obligations or for disposal and administration fees. However, charities operating as reprocessors or exporters must register from 1 January 2027, with applications open from 1 October 2026.

Mergers and brand sales gain practical rules. Where companies merge, the new corporate body inherits past data and recycling obligations and must register within 28 days or by the earliest relevant registration date. In a brand or business transfer, the buyer is treated as having supplied the seller’s branded packaging for the current and two following years, and recycling obligations move to the buyer. Reports for the periods ending 30 June and 31 December must be submitted or resubmitted to reflect the change.

Transitional windows allow producers to fix past returns. Brands can amend 2024 and first‑half 2025 reports to include qualifying material as ‘relevant packaging waste’ by 28 January 2026 for 2024, and by 1 April 2026 for the period to 30 June 2025, subject to a £2,548 charge payable by 28 January 2026. For the period to 31 December 2025, closed‑loop tonnages cannot be claimed as such but can still be reported as relevant packaging waste with evidence of recycling.

Reporting discipline tightens. From now on, producers must only report ‘relevant packaging waste’ where they hold evidence that the waste was actually recycled in the period. The record‑keeping duty extends to seven years. Scheme operators and holding companies must ensure approved sign‑off on amended submissions.

Enforcement is tougher and cleaner. Reprocessors and exporters must not issue PRNs or PERNs for the same packaging more than once. Scotland adds specific offences for pub operating businesses and licensing bodies that fail to collect and report required data. Producers who fail to register when required, or who attempt to claim closed‑loop offsets without paying the additional charge, face offences and interest on late‑assessed fees.

Charges rise across the system, reflecting updated administration costs. Example changes include large producer registration moving to £2,842, reprocessor registration to £3,228, and several accreditation fees increasing. The automatic annual uplift for inflation is now scheduled to start from 2027.

The scheme administrator can now appoint not‑for‑profit Producer Responsibility Organisations to run parts of the system. Appointments require consent from the UK and devolved authorities, include clear performance conditions, and can be revoked for poor conduct. If a PRO changes, essential data, contracts and IT can be transferred so the system keeps running.

What should businesses do in January. First, decide whether a genuine food‑grade closed loop is achievable and worth the extra registration charge; if yes, secure accredited reprocessors and evidence chains now. Second, revisit pack formats against the new fibre‑based thresholds and the ‘no more than necessary’ test to reduce exposure. Third, prepare merger and brand‑transfer files so data and obligations can be reassigned quickly if needed.

For households and the climate, the signal is encouraging. Rewarding real circularity for food‑grade plastics should increase demand for high‑quality sorting and reprocessing. Groups such as WRAP and the Ellen MacArthur Foundation have long shown that closed‑loop recycling delivers greater carbon savings than downcycling or energy recovery, provided the loop is verifiable. These rules push the system in that direction while protecting against greenwash.

Key dates to note. The instrument was made on 17 December 2025 and comes into force on 1 January 2026. Amended 2024 reports are due by 28 January 2026; amended first‑half 2025 reports by 1 April 2026; the £2,548 transitional charge and any 2026 closed‑loop registration surcharges fall due on 28 January 2026; charity reprocessor/exporter registration starts on 1 October 2026 ahead of 1 January 2027.