The latest update on Extended Producer Responsibility (EPR) legislation, including the plan for modulated fees has now been confirmed by The Department for Environment, Food and Rural Affairs (DEFRA). According to BHETA, the new rules – and especially their steep financial penalties - represent a seismic and potentially costly shift in packaging compliance for both suppliers and retailers.
EPR in general shifts the full cost of managing household packaging waste away from local authorities and onto the businesses that place packaging on the UK market. The latest update, however, is about the introduction of modulated fees and a new Recyclability Assessment Method (RAM) for 2026. While 2025 sees producers paying based on the volume and type of packaging, the forthcoming modulated fees will be calculated based on two key factors:
- Recyclability of the packaging (how easily and widely it can be recycled by UK local authorities)
- Recycled content (how much post-consumer recycled material is included)
RAM then scores packaging formats against criteria such as collection rates, sortability, and reprocessing. Under this system, packaging that scores poorly— referred to as ‘red product’ — will incur a 20% uplift in compliance costs starting in 2026, with a 200% increase in base fees by 2028.
Red product is likely to include:
- Black plastic trays (which are difficult for optical sorters to detect)
- Multilayer films or laminates (used for bags, sachets, or pouches)
- Blister packs with card and plastic (common in tools, screws, and accessories)
- Packaging with mixed materials that are hard to separate
- Formats without sufficient post-consumer recycled content
As a consequence, says BHETA, suppliers and retailers must:
- Undertake a Full Packaging Audit to determine current footprint with a view to phasing out high-risk types
- Use the Recyclability Assessment Method(RAM) to assess impact. BHETA member and official Business Support Provider, WastePack can help members navigate RAM scoring.
- Understand the potential tax increases between 2026-2028 for any “Red” and “Amber” rated products and assess whether to redesign packaging with Eco-Design in Mind
- Collaborate Across the Supply Chain
- Review On-Pack Labelling and Messaging
BHETA’s Marketing Director, Steve Richardson commented, “This is a rapidly evolving policy area, and businesses need to stay informed. BHETA, in partnership with WastePack, runs regular EPR Advisory Webinars for members, as well as best practice webinars from brands who are already leading in this field. Our webinar with Tesco on September 18this one good example.
“EPR is a significant new tax for many suppliers and retailers, and I want to highlight that for any products rated as “Red” under the new RAM assessment, the tax will increase by 20% in 2026 and by 100% by 2028, unless organisations take steps to change that packaging. It’s important that whoever is responsible for packaging in any business understands this potential increase and the potential costs of change.”
