PackUK has confirmed that packaging producers are expected to contribute around £1.56 billion in the second year of the UK’s Extended Producer Responsibility (pEPR) scheme.
The figure was published in the organisation’s 2026/27 operational plan, which also states that final per-tonne fees for year two will not be determined until regulators have received and verified all producer data for 2025. Those final calculations are anticipated in summer 2026.
Year 1 of pEPR
During the scheme’s first operational year, approximately £1.44 billion was projected to be paid to local authorities.
Producers were invoiced £1.46 billion, slightly below the £1.523 billion required, as the system accounted for businesses expected to register later in the compliance period.
PackUK reported that revised producer submissions and major changes in reported obligated tonnages created financial uncertainty and highlighted weaknesses in existing data controls. The organisation said this demonstrated the need for more robust validation processes and clearer mechanisms for recalculating obligations.
So far, two payments have been issued to local authorities, covering roughly three quarters of the financial year. Going forward, the scheme expects quarterly payments to become the standard approach.
Provided sufficient funds are collected from producers, PackUK plans to release a fourth and final payment by 31 March 2026.
The UK government has already confirmed it will cover the £63 million shortfall identified in the scheme’s first year.
Deadline Introduced for Local Authority Data
Under the new operational plan, PackUK intends to introduce a firm data submission cut-off for local authorities.
For the 2026/27 assessment year, information submitted after 1 May 2026 will generally not be included and will instead be considered during the 2027/28 cycle.
Authorities will still be able to raise concerns if they believe calculations do not comply with legislative requirements. However, PackUK said recalculations cannot remain open indefinitely and that clearer limits are necessary to ensure the system remains stable.
Over time, the organisation expects this cut-off date to move earlier in the year as the scheme becomes more established.
Defined Recalculation Timetable for Producers
After large numbers of producers amended their submissions in year one, PackUK has introduced a structured timetable for recalculating liabilities in 2026/27.
The proposed schedule from PackUK for the 2026 Compliance Year includes:
- First liability notices issued: July 2026
- Formal recalculation: November 2026
- Additional contingency recalculation: February 2027
- Final year-end recalculation: Late March or early April 2027
PackUK also confirmed in the plan that after 1 October in the relevant compliance year, they will no longer generally recalculate a notice of liability for producers who have resubmitted packaging data to a lower obligation. This is to facilitate greater stability in producer obligations.
Wastepack are continuously working with PackUK, the regulators, and the wider industry to review reported household data and resubmission timelines, ensuring a robust operational system is in place for all stakeholders under pEPR.
Producer Responsibility Organisation Expected Soon
The administrator also confirmed that it plans to appoint a Producer Responsibility Organisation (PRO) in March 2026.
Applications for the role were open between November and December 2025. Once selected, the PRO will operate as an independent body led by producers, working alongside PackUK to support delivery of the scheme.
Its responsibilities are expected to include developing modulation and Recycling Assessment Methodology (RAM) frameworks, managing communications and public engagement, and providing operational assistance.
PackUK will retain oversight of key statutory functions, including data governance, fee setting and payment management.
