The UK government has published detailed plans to adjust packaging waste charges so that producers pay fees linked to how recyclable their packaging is.
The new extended producer responsibility (EPR) modulated disposal fees are set to begin in 2026 for household packaging, reshaping how companies that supply or import packaging are charged for waste disposal.
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What the recyclability-linked fee system means
Under the updated EPR rules, organisations that import or supply packaging in the UK will be responsible for household waste disposal costs as part of their EPR obligations.
From the second year of the scheme (the 2026–27 financial year), those costs will be modulated based on recyclability. Producers will see their disposal fees rise or fall depending on whether their packaging materials are assessed as easy or hard to recycle.
The modulated fee system uses the Government’s Recyclability Assessment Methodology (RAM) to assign packaging materials to red (least recyclable), amber, or green (most recyclable) categories.
This classification then influences the proportion of disposal fees a producer must pay. A pool of funds is created from higher charges on less recyclable materials, which is used to reduce fees for more recyclable ones.
Implementation timeline and compliance basics
Modulation of fees will start in 2026, with the first modulated disposal fee calculations based on data supplied by producers in 2025.
The EPR regime itself came into force in 2025 and requires producers to collect and report detailed packaging data covering how much packaging they place on the UK market.
For the initial scheme year (2025–26), producers will pay base fees that do not vary with recyclability. Modulated fees will then apply from the second year onwards, affecting only the household packaging waste disposal fee component of total charges.
A policy review of the modulation system is expected before 2029–30 to refine future approaches.
Business impact and recyclability data use
The shift to recyclability-based fees is intended to incentivise better packaging design. Packaging that scores well under the RAM is likely to attract lower disposal fees, while less recyclable formats face higher costs.
Producers will need accurate packaging data to forecast fees and meet compliance requirements.
Industry stakeholders will also need to factor modulated disposal fees into financial planning, operations and supply chain decisions. This includes preparing for annual reporting deadlines, packaging data submissions and potential fee liabilities as defined under the EPR scheme.
The Government’s approach aims to align producer costs more closely with environmental outcomes, and businesses across manufacturing, retail and distribution sectors will be watching how the first modulated charges influence waste management and packaging choices.
