Table of Contents
- What Is Changing in 2027?
- Expected Fee Rate Changes
- Expanded Modulation
- Mandatory Labelling Costs
- How to Prepare
- Key Takeaways
Key Takeaways
- EPR fees are expected to increase in 2027 as the full cost of waste collection and processing is passed to producers.
- Modulation will become more granular, with bigger fee differentials between recyclable and non-recyclable packaging.
- Mandatory recyclability labelling comes into force in 2027, adding compliance costs for packaging redesign and printing changes.
- Non-recyclable packaging will become significantly more expensive, making packaging redesign more urgent.
- Businesses that invest in packaging optimisation now will be best positioned for the 2027 fee changes.
What Is Changing in 2027?
The UK’s packaging EPR regime is designed to evolve over time, with fee rates and modulation factors reviewed and adjusted annually. For 2027, several significant changes are expected:
- Full cost recovery — fees will move towards covering the full cost of packaging waste collection, sorting, and recycling
- Enhanced modulation — greater differentiation between recyclable and non-recyclable packaging
- Mandatory labelling — all packaging must carry recyclability labels
- Potential DRS interaction — the Deposit Return Scheme may affect EPR fees for drinks containers
For current fee rates, see the EPR fees by material type guide.
Expected Fee Rate Changes
While 2027 rates have not been finalised, the trajectory is clear:
Overall Direction
- Average fees are expected to increase by 10-25% compared to 2025-2026 rates
- Recyclable packaging fees may increase moderately (5-15%)
- Non-recyclable packaging fees may increase substantially (20-40%)
- The gap between recyclable and non-recyclable will widen significantly
Indicative Rate Comparison
| Material | 2025-2026 Rate | Expected 2027 Direction |
|---|---|---|
| Paper/card | £215/t | Slight increase |
| Glass | £192/t | Slight increase |
| Steel | £210/t | Stable to slight increase |
| Aluminium | £230/t | Stable to slight increase |
| Plastic (recyclable) | £340-360/t | Moderate increase |
| Plastic (non-recyclable) | £420-461/t | Significant increase |
| Fibre composite | £461/t | Significant increase |
Important: These are directional estimates based on the policy trajectory. Actual rates will be published by PackUK in advance of the 2027 compliance year.
Expanded Modulation
EPR fee modulation is the mechanism that makes recyclable packaging cheaper and non-recyclable packaging more expensive. In 2027, modulation is expected to become more detailed:
New Modulation Factors
- Recycled content — packaging with higher recycled content may receive fee discounts
- Collection route availability — packaging collected through kerbside may be cheaper than packaging requiring specialist collection
- Reprocessing infrastructure — materials with established UK reprocessing will be favoured
- Labelling compliance — correctly labelled packaging may receive a small discount
Impact on Specific Formats
- Mono-material recyclable plastics — smallest fee increases
- Multi-layer laminates — largest fee increases
- Black plastic — expected to attract surcharges
- Compostable plastics — unlikely to receive preferential treatment
For background on modulation, see EPR modulated fees explained.
Mandatory Labelling Costs
From 2027, all packaging must carry standardised recyclability labels. This creates additional costs:
Direct Costs
- Artwork updates — redesigning packaging graphics to include labels
- Printing plate changes — new plates for each packaging item
- Label inventory — disposing of old non-compliant labels
- Compliance verification — checking each SKU carries the correct label
Indirect Costs
- Recyclability assessment — you need to assess each packaging item to determine the correct label
- Packaging redesign — some businesses may redesign packaging to improve recyclability before labelling
- Staff training — ensuring teams understand labelling requirements
Planning Tip
Start your labelling compliance project in 2026. Work through your packaging range systematically, assessing recyclability and planning artwork changes. Do not leave it until 2027.
How to Prepare
Immediate Actions (2026)
- Audit your packaging — know exactly what materials you use and their recyclability
- Identify high-cost items — non-recyclable packaging that will become more expensive
- Start packaging redesign projects — lead times for packaging changes are 6-12 months
- Budget for increased fees — model scenarios using expected rate increases
Medium-Term Actions (2026-2027)
- Switch non-recyclable to recyclable where feasible
- Eliminate fibre composites where mono-material alternatives exist
- Increase recycled content to 30%+ (eliminates Plastic Packaging Tax)
- Implement mandatory labelling across your packaging range
- Update your data collection systems for any new reporting requirements
Cost Modelling
Use the EPR fee calculator with increased rate assumptions to model your 2027 exposure:
| Scenario | Assumption | Impact |
|---|---|---|
| Baseline | Current rates | Current cost |
| Moderate | +15% across all materials | +15% cost increase |
| Recyclable focus | +10% recyclable, +30% non-recyclable | Depends on your mix |
| Worst case | +25% across all materials | +25% cost increase |
For detailed cost reduction strategies, see how to reduce EPR costs.
DRS Impact
If the Deposit Return Scheme is operational by 2027, drinks containers within DRS scope may be exempt from EPR fees. This could reduce EPR costs for drinks manufacturers but introduces DRS registration costs.
See our Deposit Return Scheme guide for the latest.
Getting Started
- Review your current EPR costs using the fee calculator
- Identify non-recyclable packaging in your range
- Start redesign projects for the highest-cost items
- Plan labelling compliance for your full packaging range
- Budget for 2027 using conservative fee increase assumptions
Visit our pricing page for compliance tools and stay updated on fee announcements.