What UK Producers Need to Know About Year 2 Waste Disposal Fees Under EPR for Packaging

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Dan Pegram

Published: 12/01/2026

The UK’s Extended Producer Responsibility (EPR) for Packaging scheme is changing how packaging waste costs are shared. In Year 2 (2026–2027), new illustrative waste disposal fees have been published to help large producers plan for upcoming costs and compliance – and these fees come with a twist.

What Is the EPR Packaging Scheme?

Under EPR, producers that supply or import packaging are responsible for a fair share of the costs to manage and dispose of that packaging once it becomes waste. That’s a shift from local councils footing the bill to manufacturers and brands taking responsibility.

Year 2 Fees – What’s New?

In Year 2, the illustrative fees reflect a modulated system – meaning fees are adjusted based on how recyclable a material is: green, amber or red.

Here’s the deal:

Amber fees: These are baseline charges – the starting point for most materials.
Red fees: For packaging considered less recyclable, fees rise 20% above the amber level in Year 2.
Green fees: For more recyclable materials, fees are discounted (around 9% in this illustration), offering a financial incentive for better design. The idea is simple: pay more for hard‑to‑recycle materials, less for easy‑to‑recycle ones – nudging producers towards sustainability.

Typical Illustrative Fees

Below are some rounded figures per tonne for Year 2 (illustrative estimates):

Material	Green (£)	Amber (£)	Red (£)
Aluminium	245	270	325
Glass	185	205	245
Plastic	415	455	545
Paper & Card	190	210	250
Steel	260	290	345
Wood	410	450	540

These are estimates designed to help companies forecast costs – confirmed fees will be published in June 2026.

How These Fees Are Calculated

Fees are based on:

Local authority waste disposal costs
Packaging tonnage data reported by producers
Material recyclability under the new Recyclability Assessment Methodology (RAM)

This means the more packaging you place on the UK market, and the less recyclable it is, the higher your EPR bill could be.

What It Means for Businesses

If your business:

Supplies packaging to the UK market
Meets the thresholds for reporting
Is classed as a large producer

…then these fees will directly impact your compliance budget.

Even if you’re under the reporting threshold, EPR is shaking up supply chains – many producers and suppliers are already factoring potential cost pass‑throughs into pricing.

Why It Matters

This shift isn’t just about cost recovery – it’s about driving better packaging design across the UK economy. By charging more for difficult‑to‑recycle materials and less for those that are easier to reintegrate into recycling streams, the scheme aims to:

Cut waste sent to landfill or incineration
Incentivise recyclable packaging design
Reduce environmental impact from the start of the product life cycle

That’s a core part of the UK’s broader strategy to reduce packaging waste and support a circular economy.

How to Prepare

Here’s how Flame UK and other businesses can get ahead:
✔️ Understand Your Packaging Footprint – Know what you place on the market and how it’s categorised under RAM.
✔️ Plan for Modulated Fees – Design packaging that can qualify for green fees to reduce costs.
✔️ Stay Ahead of Reporting Deadlines – Producers must submit packaging data accurately and on time.
✔️ Watch for the Final Fee Confirmation in June 2026 – Year 2 illustrative fees are provisional.