Councils set for a windfall under recycling scheme

English councils are poised to receive a substantial £1.1bn in recycling funding, sourced directly from fees levied on companies for the packaging they produce.

- REBECCA SPEARE-COLE

The move marks a significant shift from the current system, in which local authorities have historically shouldered the cost of disposing of items like milk bottles and cereal boxes, funded by taxpayers.

Under the new Extended Producer Responsibility (EPR) scheme, set to come into force this year, businesses will be required to contribute financially towards the recycling of their packaging. Companies will begin paying these fees from November, with charges varying based on how difficult the material is to recycle.

It is anticipated that this initiative will incentivise businesses to reduce their packaging use, transition to more easily recyclable materials, and invest in circular economy innovations. Ultimately, the goal is to significantly cut the volume of waste sent to landfills or incinerators.

The Environment Department expects to collect £1.4bn in EPR fees over the coming months, guaranteeing £1.1bn of this sum for English councils in the 2025/26 financial year, regardless of the final collection total. A further £300,000 is expected to go to the UK’s devolved authorities to allocate to councils.