PackUK, the Scheme Administrator for Extended Producer Responsibility for packaging (pEPR), has published its Year 2 Illustrative Fees.
For the first time, this publication includes indicative Green and Red fees, alongside Amber fees (previously known as base fees). This follows the introduction of the Recyclability Assessment Methodology (RAM), which links producer fees to the recyclability of packaging materials.
Under this approach, highly recyclable packaging will benefit from discounted Green fees, demonstrating the potential cost savings available to producers who adopt more sustainable packaging designs.
A modulation framework is being introduced to incentivise sustainable packaging choices by aligning fees with recyclability ratings:
- Green-rated packaging (widely recyclable) will attract lower fees
- Amber-rated packaging will represent the baseline, with no modulation
- Red-rated packaging (difficult to recycle) will incur higher fees
Many producers – particularly those using materials such as glass and aluminium – are expected to see reduced costs in Year 2, as Green fees are lower than the Year 1 base fees.
PackUK says the publication of illustrative fees is intended to provide transparency, helping producers make informed investment decisions and encouraging a gradual shift away from unrecyclable materials.
Confirmed Year 2 fees will be published in summer 2026, and the modulation framework will be reviewed after three years to assess whether additional sustainability factors should be introduced.
For more information, see the latest government guidance.
