The Department for Environment, Food and Rural Affairs has released initial illustrative base fees for year one of extended producer responsibility for packaging (pEPR).
The document relates to fees that would be charged to obligated packaging producers by the Scheme Administrator.
The illustrative base fees do not cover regulator charges imposed by the Environment Agency, the Scottish Environment Protection Agency, the Northern Ireland Environment Agency, and Natural Resources Wales.
It also does not cover costs associated with meeting packaging recycling targets, such as through the purchase of Packaging Waste Recycling Notes (PRNs).
Illustrative base fees for pEPR 2025/26
| Material | Lower (in £/tonne) | Intermediate (in £/tonne) | Higher (in £/tonne) |
|---|---|---|---|
| Aluminium | £245 | £495 | £655 |
| Fibre-based composites | £410 | £525 | £655 |
| Paper or board | £185 | £260 | £350 |
| Plastic | £355 | £515 | £610 |
| Steel | £170 | £295 | £420 |
| Wood | £225 | £265 | £330 |
| Other | £225 | £265 | £330 |
The table above shows the illustrative pEPR base fees rates for 2025/26 for all packaging materials except glass.
| Material | Lower (in £/tonne) | Intermediate (in £/tonne) | Higher (in £/tonne) |
|---|---|---|---|
| Glass | £130 | £260 | £330 |
The table above shows illustrative pEPR base fees rates for glass packaging for 2025/26.
Defra said glass fees were estimated using a separate methodology to determine local authority packaging waste management costs being developed by Defra, which will be used for the final EPR for packaging fees.
When will businesses incur fees?
Fees will be incurred from 1 April each year, based on packaging supplied by registered producers for the preceding calendar year.
The deadline for reporting data on 1 April, which means fee rates for the first year of EPR for packaging (2025/26) won’t be known until after 1 April 2025, Defra said.
Each obligated producer’s fees will be calculated by the scheme administrator using the fee formula built into the Fees and Payments Calculator (FPC).
The legal provisions for the fee formula are set out in the draft Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations.
Defra said because of “significant limitations” Government intends to publish refined figures for the illustrative base fees in September 2024 once more data has been reported and checked by regulators.
Defra said the “robustness of this data and the size of the range” will be dependent on the quality of data producers submit and whether it is submitted on time. The next deadline for reporting six months of 2024 household packaging data is 1 October 2024.
The illustrative fees are also subject to the the 2024 spending review, Defra said.
In the second year of EPR, fees will be modulated to ensure packaging materials that have a lower environmental impact will be the least expensive for producers to use, Defra said.
The types of packaging which will be subject to higher or lower (“modulated”) fees, and the consequential sub-categories of packaging that would need to be reported in 2025, will be released in Autumn 2024.
Industry reaction to illustrative base fees
Jim Bligh, Director of Corporate Affairs and Packaging, The Food and Drink Federation, said: “Food and drink manufacturers support the government’s zero waste goal and are committed to a cleaner environment.
“We welcome the long awaited release of base fees for Extended Producer Responsibility (EPR), which helps manufacturers take more responsibility for packaging and helps them plan for 2025 costs.
“With EPR expected to cost at least £1.4 billion in 2025, it’s crucial that funds are used to improve recycling infrastructure. Everyone must work together to ensure EPR drives value, boosts recycling rates, and fosters a circular economy.
“Defra should now empower producers to manage the scheme, encouraging investment, green jobs, and innovation in packaging.”
Defra’s publication of illustrative base fees for packaging producers under EPR offers reassurance for circular economy investors.
Executive Director of the Environmental Services Association, Jacob Hayler, said: “Defra’s publication of illustrative base fees for packaging producers under EPR offers reassurance for circular economy investors over the continued direction of travel for resources and waste policy under the new Government.
“The announcement also provides much-needed clarity to obligated packaging producers to enable them to prepare for the introduction of charging from 2025 – helping to build a more complete picture of the economics of the new regime.
“The Resources and Waste Strategy reforms remain essential to delivering progress against binding national recycling targets; to reducing waste; and to delivering green growth – so visible policy progress after a prolonged period of stagnation and uncertainty will undoubtedly boost confidence among the organisations and investors responsible for delivering these outcomes.”
We welcome this guidance from the government and look forward to supporting all stakeholders as they make vital progress towards a more circular economy.
Steve Gough, Chief Executive of Valpak, part of international circular economy specialist Reconomy, said: “Defra’s long-awaited guidance on EPR fees brings more clarity to the industry around the EPR regulations and provides guidance for producers to plan for their 2025 budgets.
“With the next set of base fees to come in September once more robust data has been verified by regulatory bodies, we are approaching the longer-term certainty that producers need to ensure they are meeting their compliance requirements.
“We welcome this guidance from the government and look forward to supporting all stakeholders as they make vital progress towards a more circular economy.”
“We note the references to our recent PackFlow report. The report conducted by Valpak Consulting has played a crucial role in estimating the tonnages of packaging against which these fees are applied to cover the costs of the Local Authority collections.”
