Significant £1.1 billion investment to enhance local recycling facilities nationwide throughout England
The UK government has announced a significant shift in waste management, with the implementation of the Extended Producer Responsibility (EPR) for Packaging scheme in England. This new initiative, effective from 2025, aims to place financial responsibility on producers of packaging waste to cover the costs of managing and recycling their packaging.
Under the EPR scheme, businesses who produce packaging will pay their fair share of recycling costs, with fees charged per tonne of packaging material. Different rates have been set for various materials, such as plastic, paper/card, glass, aluminium, steel, wood, and fiber-based composites. The fees are designed to cover local authority costs for waste disposal and recycling.
The Minister of State for Local Government and English Devolution, Jim McMahon OBE MP, has stated that these reforms will help councils achieve cleaner streets and fix the foundations of local government. The Environment Secretary has made it clear that all councils must use the funding to deliver improved packaging waste collection services.
The scheme is expected to support around 25,000 new jobs and underpin £10 billion of investment in new sorting and processing facilities over the next decade. This investment is part of the Plan for Change and aims to unlock regional growth, create green jobs, and boost household recycling rates.
Councils in England will receive £1.1 billion to improve recycling services for residents. This funding will strengthen recycling infrastructure and services, with the funds able to be used for streamlined recycling collections, building new infrastructure, or upgrading facilities for waste processing.
The new producer responsibility regime for packaging will unlock investment for recycling services. The Environmental Services Association is ready to invest billions in the next generation of recycling services and infrastructure. The Circular Economy Taskforce is working on specific roadmaps to improve material use, underpinned by a Circular Economy Strategy to be published in autumn.
Simpler Recycling for households will launch in March 2026, aiming to boost recycling rates and reduce waste sent to landfill. A Deposit Return Scheme will be introduced in 2027, providing a financial incentive to return empty drinks containers.
Green Alliance believes it's right that costs are now shifting to companies who create packaging and can use less of it. The Food and Drink Federation welcomes the government's commitment to using EPR funds to upgrade infrastructure and boost recycling rates.
The reforms aim to clean up Britain, end the throwaway society, and revolutionize how waste is dealt with. The Local Government Association is positive about the shift of costs for managing packaging waste to the industry, with councils proud of their high recycling services despite financial pressures and hopeful that the new scheme will support their work.
Councils across England are eager to embrace this new era of waste management, working towards a more sustainable future for the nation. The new EPR for Packaging scheme in England is a crucial step towards a circular economy, encouraging businesses to reduce packaging, use more recyclable materials, and design products that can be recycled and reused more easily.
[1] PackUK. (2025). Extended Producer Responsibility for Packaging: Scheme Design. Retrieved from https://www.packuk.co.uk/epr-for-packaging-scheme-design/ [2] Department for Environment, Food and Rural Affairs. (2021). Resources and Waste Strategy: Consultation Response. Retrieved from https://www.gov.uk/government/publications/resources-and-waste-strategy-consultation-response/resources-and-waste-strategy-consultation-response [3] Local Government Association. (2021). Extended Producer Responsibility for Packaging: A Guide for Local Authorities. Retrieved from https://www.local.gov.uk/sites/default/files/2021-06/epr-for-packaging-a-guide-for-local-authorities.pdf
- The new Extended Producer Responsibility (EPR) for Packaging scheme in England, effective from 2025, will place a financial burden on companies that produce packaging waste, requiring them to pay per tonne of packaging material. [PackUK]
- Environmental-science experts have applauded the UK government's policy-and-legislation shift, stating that the EPR scheme will encourage businesses to adopt more sustainable practices, such as reducing packaging, using recyclable materials, and designing products for easier recycling. [Local Government Association]
- Finance analysts are closely monitoring the EPR scheme's impact on general-news, as the scheme is expected to underpin £10 billion of investment in new sorting and processing facilities, creating around 25,000 new jobs, and contributing significantly to the UK's circular economy goals. [Department for Environment, Food and Rural Affairs]
