The UK packaging cost picture changes with the new financial year. Two mechanisms now matter to most sellers of packaged goods, and they are often confused.
1. Packaging EPR, now with recyclability ratings
Year 2 of UK packaging EPR runs from 1 April 2026 to 31 March 2027. In this year, fees begin to be modulated by recyclability under the Recyclability Assessment Methodology (RAM). Packaging is rated red, amber or green. Amber is the base rate, green is discounted, and red attracts a multiplier of 1.2 on the relevant disposal-fee component. Industry groups have raised questions about how some materials, such as fibre-based composites, will be rated in practice, so we expect refinements.
2. Plastic Packaging Tax
The Plastic Packaging Tax is a separate tax on plastic packaging components that contain less than 30% recycled plastic, payable by UK manufacturers and importers above the threshold. The rate rises again from 1 April 2026. It has its own registration, returns and evidence of recycled content, independent of EPR.
What this means for paper and clear packaging
- Material choice now shows up in fees. A mono-material paper or film that is widely recycled should rate better than a laminate that is hard to separate.
- Evidence matters. RAM ratings depend on the format and components. We keep specifications per component so that ratings can be checked rather than assumed.
- Cost belongs in pricing. Even when a seller is below the thresholds, customers and marketplaces increasingly pass these costs or data requests along the chain.
For our own ranges, we use this as a design brief: fewer mixed materials, clear labelling, and data that can follow each product into every market.