The UK’s new packaging Extended Producer Responsibility (pEPR) scheme is expected to generate around £1.5 billion per year. That’s not small change; that’s not a new bin lorry money; that’s enough money to reshape the entire UK recycling system but we still don’t have a clear, publicly understood plan for how it will be spent.
Who Actually Gets the Money?Under pEPR, the funding is primarily intended for local authorities responsible for household waste collection and disposal such as Waste Collection Authorities (WCAs) – typically district and borough councils and Waste Disposal Authorities (WDAs) – typically county councils or unitary authorities Across England, this breaks down roughly as 309 Waste Collection Authorities/31 Waste Disposal Authorities.
In addition, there are also Unitary Authorities (doing both roles), combined authorities and partnerships and the sevolved nations (Scotland, Wales, Northern Ireland) running parallel systems so depending on how you count it, you’re looking at roughly 400 local authorities across the UK that could be eligible to receive pEPR funding in some form.
In theory, pEPR is beautifully simple - packaging producers pay a charge for every tonne of packaging they place on the UK market - local authorities get funded and hey presto, recycling improves. The funding is meant to cover the efficient and effective cost of managing household packaging waste including the collection (bins, vehicles, crews), sorting, recycling, communications, labelling, data reporting and compliance.
In short, producers pick up the tab for packaging waste that households generate. A fair principle which is long overdue but unfortunately still without a clear spending blueprint.
For a £1.5 billion annual fund, we still don’t have a clear national investment plan; a standardised model for how councils should use the money; a transparent breakdown of expected allocations per authority or a defined link between funding and performance outcomes. At the moment, it's a bit - 'Here’s the money… we’ll work out the details later' which, in waste terms is the policy equivalent of ordering a skip without knowing where you’re delivering it.
Reinforcing the Status Quo
I believe that without structure, this funding seriously risks being used just to plug existing budget gaps and/or maintaining current (often inefficient) collection systems; continued inconsistent material streams actually recycled across regions and if the system doesn’t change, the outcomes obviously won’t either.
No Link to Procurement Behaviour
Waste doesn’t start in the bin store. It starts in procurement and pEPR is supposed to influence producers through modulated fees (based on how hard the packaging is to recycle) but if local authorities aren’t aligned with that signal we get a disconnect where producers pay more for hard-to-recycle packaging, councils still struggle to process it and the system absorbs the cost but doesn’t fix the cause which will only (understandably) result in push back from the packaging manufacturers.
A Data Gap in a Data-Driven Era
With Digital Waste Tracking on the horizon (don't hold your breath for phase 3), we’re about to enter a world where waste is tracked in near real time; the responsibility becomes traceable and poor data becomes visible, yet pEPR funding isn’t clearly tied to data quality improvements, infrastructure for tracking or standardised reporting systems which raises a question; are we funding yesterday’s system rather than facilitating the arrival of tomorrow’s?
What Should Be Happening?
If £1.5 billion is genuinely on the table each year, then at minimum we should see:
• A National Investment Framework with clear guidance on what councils should spend the money on and what “efficient and effective” actually means?
• Performance-Linked Funding. Not just: “Here’s your allocation” but “Here’s your allocation—based on recycling performance, contamination levels and documented improvement”
• Standardisation of Collections with fewer variations, more consistency of the materials collected, the container types and labelling otherwise we’re just funding confusion at scale.
We need alignment with procurement and EPR signals making sure hard-to-recycle materials become operationally and financially unattractive and easy-to-recycle materials flow through the system efficiently (the RAM structure should address this) - link
• Integration with Digital Waste Tracking - we should use funding to upgrade systems, improve data accuracy and enable real-time reporting.
This Is a 'once in a generation' opportunity - £1.5 billion per year is not just funding. Used properly, it could standardise recycling across the UK driving better product design, reducing residual waste, improving data and compliance. Used poorly, it becomes just another line in a budget spreadsheet. If we don’t decide what this money is for, the system will decide for us and the system, historically, isn’t great at change. More like this (pEPR) - link - more like this (packaging) - link














