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Councils to get £1.1bn fund for recycling from packaging fees

The Gazette

|

July 29, 2025

COUNCILS in England are set to receive a share of £1.1 billion in recycling funding taken from money charged to companies for the packaging they produce.

Councils to get £1.1bn fund for recycling from packaging fees

Under the current system, local councils have footed the bill for disposing of items such as milk bottles, cereal boxes and soup tins using taxpayers’ money.

But the new extended producer responsibility (EPR) scheme that comes into force this year will require businesses to pay towards the costs of recycling packaging they use.

Companies will start paying fees from November, with charges varying depending on how hard the material is to recycle.

It is hoped this will encourage businesses to reduce the amount of packaging they use, shift to more recyclable materials and invest in circular economy innovations, ultimately reducing the amount of waste sent to landfills or incinerators.

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