Businesses that place packaging on the UK market are facing a growing responsibility for what happens to it after use. Under Extended Producer Responsibility for packaging, eligible producers help pay for the management of household packaging waste. PackUK forecasts that it will recover £1.558 billion in fees during the 2026 to 2027 financial year.
This is a forecast of the total fees PackUK expects to collect. It is not a single charge applied equally to every business, nor is it a final bill for each producer. Individual liabilities depend on factors such as the amount and type of packaging a business reports. Understanding the forecast can help businesses review their packaging data, costs and wider waste arrangements.
Learn MorePackUK’s operational plan for 2026 to 2027 sets out the expected fees for the scheme’s second year. The forecast comprises £1.47 billion for local authority packaging disposal costs, £28 million for administration and £60 million for impairment. Together, these amounts total £1.558 billion. GOV.UK
The £1.47 billion element relates to the cost of local authorities managing packaging waste. This includes the costs associated with collecting, sorting, recycling and disposing of packaging that households discard. The scheme transfers these costs towards producers that supply packaging, in line with the principle that producers should help fund the waste their packaging creates. House of Commons Library
The forecast covers the 2026 to 2027 operational year. It is based on PackUK’s estimates and calculations, so it should not be read as a confirmed amount paid by each producer. A business’s own fee depends on the relevant packaging data and fee rates.
Contact our TeamExtended Producer Responsibility, often shortened to EPR, is a scheme that makes eligible businesses responsible for some of the costs of managing packaging after it becomes waste.
Packaging can include material used to contain, protect, handle, deliver or present goods. It may include packaging used for products sold to consumers or businesses, as well as certain items such as pallets and display units.
The rules apply to businesses that carry out certain activities involving packaging. These can include manufacturing packaging, importing packaged goods, packing goods or selling packaged goods to an end user. A business may be responsible even when another company physically handles the packaging. For example, a brand owner can remain responsible for branded packaging made or imported on its behalf.
Talk to our specialists nowBusinesses must assess whether they are producers under the scheme and whether they meet the relevant thresholds. For 2026 reporting, the government says a business is an obligated producer if it is established in the UK, has a worldwide annual turnover of at least £1 million and supplied or imported more than 25 tonnes of packaging in the previous year. GOV.UK
There are different requirements for small and large producers. A large producer generally has an annual turnover above £2 million and supplies or imports more than 50 tonnes of packaging. Large producers have more extensive reporting and payment duties. They must report packaging data, meet recycling obligations and pay a packaging waste disposal fee for relevant packaging. Small producers have separate registration and reporting requirements, but do not pay the packaging waste disposal fee. GOV.UK
The rules can be more complicated for groups of connected companies, imported goods and branded packaging. Businesses should check their position against the latest government guidance. They should also keep records that support the figures they report, including the weight and type of packaging placed on the market.
Talk to the W&S team now. +A producer’s packaging waste disposal fee depends on the weight and type of household packaging it reports. PackUK bases the fees on local authority waste management costs. This means that two businesses with different packaging materials or quantities may have different liabilities. GOV.UK
For 2026 data onwards, fees are also adjusted according to how recyclable the packaging is. Under this approach, green rated packaging with higher recyclability attracts a lower fee, while red rated packaging with lower recyclability attracts a higher fee. Amber rated packaging uses the base fee. This adjustment is known as fee modulation. GOV.UK
The purpose is to encourage producers to consider the environmental impact of packaging choices. Where a suitable alternative exists, a business may be able to reduce its exposure to higher fees by improving the recyclability of its packaging. However, changes need to be assessed carefully. A packaging redesign should still protect the product, work in the supply chain and meet any relevant safety or performance requirements.
Contact W&S Recycling todayA practical first step is to check whether the business has packaging obligations. Review the activities it carries out, the amount of packaging supplied or imported and the turnover thresholds. If the business is part of a group, check whether the rules require figures to be considered across connected companies.
Next, review packaging records. Data should identify the weight and material type of packaging, as well as where it enters the UK market and which company is responsible for it. Clear records can make reporting more reliable and help the business understand why its costs may change.
It can also help to assess the packaging itself. Look at whether materials can be reduced, reused or changed to improve recyclability. Consider how packaging is assembled, separated and handled by customers. Even where a change does not remove a business’s obligations, better packaging design may support more efficient waste management and help limit avoidable material use.
Finally, review how waste is managed at the business’s own premises. Packaging EPR fees and a company’s commercial waste collection charges are different things. EPR relates to the producer’s obligations for packaging placed on the market. Commercial waste arrangements concern the waste generated at a workplace, site or premises. Businesses should understand both when planning their budgets.
Choose W&S RecyclingGood waste management can help a business keep recyclable materials separate from general waste and make collections easier to manage. Depending on the type and volume of waste, a business may need regular collections, recycling services or a skip for a particular project.
W&S Recycling provides commercial waste collection, recycling and disposal services, as well as skip hire. Its services include waste support for businesses across sectors such as construction and retail. W&S also describes its wider operations across the southern counties, with some services available nationwide. Businesses should contact the team to check service availability for their location and requirements. wsrecycling.co.uk
These services can support a business’s day to day waste arrangements. They do not replace a producer’s responsibilities under packaging EPR. A business that may be obligated under EPR should follow the relevant reporting and payment guidance, while arranging suitable collection and recycling for the waste produced at its premises.
Explore W&S commercial servicesThe £1.558 billion figure shows the scale of the fees PackUK forecasts for 2026 to 2027. It does not mean that every UK business will receive an equal bill. A producer’s position depends on its activities, packaging volumes, materials and status under the scheme.
Businesses can prepare by checking their obligations, improving the quality of their packaging data and reviewing whether packaging can be made more recyclable. They should also consider how their own commercial waste is collected, separated and recycled.
For help with business waste collection, recycling, disposal or skip hire, contact W&S Recycling to discuss your requirements and the services available in your area.
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