William Eichler 28 July 2025

Packaging levy to raise £1.1bn for waste services

Packaging levy to raise £1.1bn for waste services image
© HalynaRom / Shutterstock.com.

A new levy on packaging is set to raise over £1bn of extra funding for council waste services in England, according to the Department for Environment, Food & Rural Affairs (Defra).

The Extended Producer Responsibility for Packaging scheme charges fees to businesses that use packaging to meet the costs of collecting and recycling it.

Circular Economy Minister Mary Creagh said the initiative will raise £1.1bn which will help councils improve critical infrastructure and collections.

‘This will revolutionise how we deal with our waste and ensure more of today’s rubbish is recycled into tomorrow’s packaging,’ she said.

Executive Director of the Environmental Services Association, Jacob Hayler said: ‘Our members stand ready to invest billions, alongside local authority partners, in the next generation of recycling services, infrastructure and jobs, which will provide a rapid boost to England’s stalled recycling rates.

‘The new producer responsibility regime for packaging, alongside other measures to simplify recycling services, will unlock this investment and support our ambition to achieve a circular economy in the United Kingdom over the next decade.’

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