The Department for Environment, Food and Rural Affairs (Defra) has officially confirmed that the Extended Producer Responsibility (EPR) for packaging will not be scrapped.
EPR, which is currently being implemented, sees retailers, manufacturers and producers taxed for each piece of packaging used in their products.
The announcement comes as PackUK, the EP scheme administrator, set out its operational plan for 2026 to 2027 in early May. The report followed its prediction that EPR would result in £1.44 billion in payments to local authorities, supported by an additional £27 million for administration and public information, as well as a 4% impairment charge.
As this was based on the first assessment year (2025 to 2026), PackUK found that subsequent producer resubmissions and significant shifts in obligated tonnages highlighted “financial risks” and the increasing need for data accuracy and robust recalculation processes.
Looking at the 2026/27 year, PackUK forecasted a fee recovery of approximately £1.56 billion.
According to figures from the British Retail Consortium from 2025, 85% of retailers said that the administrative and compliance burden they faced had “significantly increased” as a result of EPR, creating “further pressure” on businesses. At the same time, the Bank of England estimated that the scheme could add 0.5% to the level of food prices if the costs were fully passed through to consumers.
A Government spokesperson said: “There are no plans to scrap Extended Producer Responsibility, which moves the cost of dealing with waste away from taxpayers and generates over £1 billion annually.
“It’s part of a major investment in the UK economy, helping create 25,000 jobs and we will continue to work with industry as the changes are implemented.”
