pEPR fees confirmed: What UK producers need to know for Year 1

On 27 June, PackUK released the final base fees for Year 1 of packaging Extended Producer Responsibility (pEPR), covering packaging placed on the market from 2025 to 2026. For businesses across the supply chain, these fees aren’t just another cost, they’re a signal that the UK is shifting to a polluter-pays model, putting the onus on producers to cover the true cost of packaging waste.

So, what’s changed? What’s behind the numbers? And how does the UK stack up internationally? Let’s break it down.

The final fees and what’s changed

Here are the confirmed fees by material, alongside changes from the previous iteration:

The headline? Fees are down across nearly all materials, with aluminium and glass seeing the biggest reductions. The only material that’s gone up is fibre-based composite, but just slightly (+1%).

Why the drop?

A few key updates explain the fee changes:

• More accurate tonnage data: This round includes the most up-to-date packaging data from the RPD (June 2025), replacing the partial 2024 dataset.
• Better estimation of unreported packaging: A 4.3% uplift was applied to capture likely missing tonnages, improving fairness and billing accuracy.
• Refined modelling: Cost estimates have been sharpened with input from both industry and local authorities.
• Reduced bad debt provision: Lowering this from 6% to 4% brought overall cost allocations down.

How are pEPR fees calculated?

The formula used is based on Defra’s final modelling scenario, which takes into account:

(Local authority packaging waste costs + system/admin costs – revenue from recyclables) ÷ total household packaging placed on the market.

For glass, it’s worth noting that the tonnages also include commonly binned items and household drinks containers in-scope of pEPR. However, drinks containers made of PET, aluminium, or steel and between 150ml and 3L are excluded, because they’ll fall under the UK’s upcoming Deposit Return Scheme (DRS).

We have developed a free online pEPR Cost Calculator so you can estimate your potential costs and start planning ahead.

How do UK fees compare internationally?

The UK’s pEPR fees may appear high at first glance, but comparing across countries is tricky. Here’s why:

• Countries with DRS (e.g., Germany, Denmark, Netherlands) shift much of the cost of drinks packaging away from EPR fees
• Collection systems differ: France and Spain, for example, use public return points, reducing municipal collection costs
• Modulation is more advanced abroad: Some countries already vary fees by recyclability or polymer type. The UK currently applies one plastic fee across the board
• Residual waste costs are included in UK fees, whereas many other nations exclude them
• Differences in geography, population density, and waste composition all impact cost structures

What’s next?

This is just the beginning. Year 1 of pEPR sets the tone for how producers will interact with the system and influence it. As more data is gathered and system performance evolves, we can expect fee modulation, incentives for design-for-recycling, and a stronger link between sustainability and cost.

Now’s the time to get your house in order.

Key takeaways for producers

• Check your packaging tonnage data and reporting accuracy, it’s what your fees are based on
• Understand the material mix of your packaging and how it’s impacted by pEPR and DRS
• Plan ahead for Year 1 costs and future-proof your strategy by improving recyclability

Need help navigating pEPR?

Our team stays on top of every update so you don’t have to. Get in touch to find out how we can support your compliance, reporting, and packaging strategy.

We help businesses understand, plan for, and actively reduce their pEPR costs through a combination of smart data analysis and strategic packaging advice.

Here’s how we can support you:

• pEPR reporting and compliance: We take the complexity out of submissions, ensuring your data is accurate, complete, and audit-ready.

• Packaging portfolio reviews: We assess your current packaging materials, formats, and volumes to identify cost and sustainability opportunities.

• Design for compliance and circularity: Our experts work with your teams to redesign packaging that’s not only recyclable but also pEPR cost-effective.

• Custom pEPR cost forecasting: Using your real data and future scenarios, we model expected fees, so you can make informed commercial decisions.

• Interactive tools: Try our online pEPR Cost Calculator to see where your biggest costs lie and what changes could make the biggest impact.