pEPR: Local authorities to receive updated estimates in June

The notices will indicate estimates for year one of the extended producer responsibility for packaging (pEPR) scheme. 

A first round of estimated fees was issued in November 2024, subject to further review.  

The next round of estimates will include any adjustments based on feedback and queries from local authorities after the first round.  

However, Defra cautioned that the predictions – which will be sent out to chief executives – are still indicative.  

Tomorrow (1 April 2025) marks the deadline for producers to submit packaging data under pEPR. 

Next steps  

Over the course of the next year (April 2025 to March 2026), local authorities will receive three grant determination letters.  

The letters will confirm:  

• How much the local authorities will be paid under pEPR. 

• When the payments will be made. 

Defra again warned that the confirmed amounts may differ from the indicative payments sent out in November 2024 and June 2025.  

The first payment to local authorities will be made between October and December 2025 and will cover the first two quarters of the financial year.  

The second and third payments will be made between January and March 2026. These will cover the third and fourth quarters of the financial year.  

From April 2026, local authorities will receive four separate payments made quarterly.  

Councils will receive remittance advice after each payment is made.  

What will local authorities do with the payments?  

In a question to Defra tabled on 18 March 2025, John Glen MP questioned whether local authorities will be required to spend the full funds generated through pEPR on waste management and processing.  

On Friday (28 March 2025), circular economy minister Mary Creagh answered that this type of funding has not usually been ringfenced in order to protect “the principles of devolution”.  

Although the payments have been modelled to cover the costs of waste management per local authority, there will be no enforced requirement to do so.  

Creagh said that, despite this, Defra is “encouraging” local authorities to invest this income into their recycling services. 

She said: “We recognise that packaging producers have a strong interest in ensuring pEPR fees are used to support transition to a circular economy and we are currently exploring options to support this ambition.” 

Defra has agreed with HM Treasury and the Ministry of Housing, Communities and Local Government (MHCLG) that the pEPR funding will be classified as an additional revenue stream in its first year.  

Creagh concluded: “In England, Simpler Recycling introduces new standard for the management of dry recycling.  

“We will focus on engagement with local authorities and encourage the use of this additional funding to help drive investment in additional infrastructure that may be needed to meet these standards.” 

Want to learn more about England’s Simpler Recycling? Join us at letsrecycle.com‘s National Conference in London on 3 July 2025. Register your interest and find out more here.