DEFRA Confirm Key Updates to Extended Producer Responsibility for Packaging

The UK Government has released a new update on EPR reforms this month, outlining several regulatory amendments and commitments. Key points are below, with the full letter available here.

1. Introduction of a Producer Responsibility Organisation (PRO)

A new PRO will be introduced to take on functions from government. An expression of interest process is now open, with formal appointment expected by March 2026.

2. Offsetting for Closed Loop Recycling Systems

Businesses operating closed loop systems for food-grade plastics may now offset household disposal fees, encouraging high-quality recyclate.

3. Littered Packaging Payment Approach

Plans to include litter and street bin packaging costs in EPR fees have been paused in England and NI, pending rollout of the Deposit Return Scheme (October 2027). Scotland and Wales remain committed to full coverage.

4. Dual-Use Packaging Challenges

No immediate change – but the Government will work with stakeholders on solutions. Regulatory changes may follow a co-design and consultation process.

5. Updated Recyclability Assessment Methodology (RAM)

RAM V1.1 is now published for 2025 reporting, with the next version to be expected come April 2026.

6. Easing Recyclability Reporting Burdens

Efforts are underway to simplify reporting for complex packaging portfolios; further updates expected shortly.

7. Supporting UK Recycling Infrastructure Includes:

· Allowing mass balance for chemically recycled plastic under the Plastics Packaging Tax from April 2027.

· Reform of the PRN system to support domestic recyclers.

· Food Standards Agency to oversee food-grade plastics compliance.

8. Improving Local Authority Services

New Improvement Action Process (IAP) pilot launching summer 2025. Poor performance may lead to payment deductions. Further incentives and efficiency measures are under development.

Nation-Specific Updates:

Glass Reuse – All Nations

Defra will support expansion of glass reuse systems, especially for on-trade and closed settings. A call for evidence will launch this autumn.

Circular Economy Finance Coalition – England

Defra has launched a new coalition with the Dutch government and the City of London to attract private investment into circular economy infrastructure.

DRS: Appointment of UK Deposit Management Organisation

You can find more about this in our separate Member Update article.