Metal packaging organisations respond to PackUK EPR base fees

PackUK, the scheme administrator for the UK’s Extended Producer Responsibility for packaging (pEPR) programme, has announced the base fees for year one of the scheme (2025 to 2026).

The base fees for all packaging materials are as follows:

[Above source: gov.uk]

Commenting on these base fees, Tom Giddings, executive director of Alupro, said: “Defra’s confirmation of final base fees is an important step forward towards the implementation of EPR in the UK. Alupro is highly supportive of the work Defra has undertaken to ensure that these costs reflect the reality of collecting and sorting post-consumer packaging.

“We are pleased that the fees and payments team have taken our feedback on board regarding the financial value of aluminium packaging, and we would like thank Defra for its positive response to being challenged on the bulk density calculations used in the December iterative fees. The significant reduction in aluminium base fee from £435 per tonne (December iterative fee) to £266 demonstrates the impact that improved modelling can have on ensuring that the fees are reflective and fair.

“Finalising base fees marks a great achievement in the progress of EPR. We look to continuing to work with Defra, PackUK and any future Producer Responsibility Organisation (PRO) on the further refinement of this policy.

“It is positive to see Defra publish its update on fee modulation. While it is still unclear exactly how much the modulated fees will directly influence the use of more widely recyclable packaging material – such as aluminium – this is nonetheless a significant moment for policy development.”

Jason Galley, director and chief executive of the Metal Packaging Manufacturers Association (MPMA), has also released the following comment on the fees: “The final packaging EPR base fees are a step in the right direction with encouraging reductions for aluminium and steel which better value their contribution to the circular economy. However, individual fees for metal packaging should not be looked at in isolation but rather in comparison with all materials. Fundamentally the disparity remains when the base fees are translated into real-life product packaging, resulting in the financial incentive to switch to lighter-weight yet harder-to-recycle materials.

“Despite the amendments to the base fees, the unique role of metal to support UK circular economy goals is still undervalued within the EPR scheme and businesses making the most circular, highly-recycled packaging are under threat.

“While we are pleased that MPMA’s evidence has been sensibly evaluated by Defra, we believe metal packaging within the UK EPR scheme should be closely aligned with European schemes where steel and aluminium base fees are significantly lower compared to lighter-weight, less-recycled materials.

“We believe there is the opportunity to make packaging EPR a showcase piece of legislation. We will continue to work with Defra and PackUK to bring the facts to the table in support of the country’s circularity goals.”

Details on how fees will be used to invoice producers in October will be shared soon.

According to PackUK, producers have an obligation to continue reporting their packaging data through the RPD online portal. Large producers should report data for 1 January to 31 June 2025 by 1 October 2025. PackUK will use this data and the above listed costs to calculate and release base fees for 2026 to 2027.

From year two of the UK’s EPR (2026 to 2027), fees will be modulated to drive a shift to more environmentally sustainable packaging design, using recyclability as the indicator. The types of packaging which will be subject to higher or lower modulated fees will be based on recyclability assessments in line with a Recyclability Assessment Methodology (RAM). All in-scope packaging materials will be assigned a rating of red, amber, or green under the RAM, with red being the least recyclable and green being the most recyclable.

For the first three years of the policy, the additional funds raised by the application of a higher modulation factor to RAM red-rated packaging material will form a pot of money for redistribution. This redistribution pot will be used to apply a lower household packaging waste disposal fee for RAM green-rated packaging material. Amber-rated material will see no change in its household packaging waste disposal fee as a result of modulation, remaining at the base fee rate, according to PackUK.