Defra Announces Lower Packaging EPR Fees — But Fibre-Based Composites Buck the Trend

Defra has finally confirmed the long-awaited base fees for Packaging Extended Producer Responsibility (pEPR), releasing the figures late on Friday afternoon. The new fees will shape the first wave of EPR invoices for producers and bring significant cost changes across material streams.

Overall, the fees have dropped compared to the last set of illustrative figures issued previously, offering some relief for obligated businesses. The average fee across all materials now sits at £292 per tonne, down 15% from the earlier £342 figure.

Biggest Winners and Losers

The most dramatic change comes for aluminium, where fees have plummeted by 39%, falling from £435 to £266 per tonne. Glass producers, who have been actively lobbying for fairer rates, have also secured a significant win. Glass fees fall by 20%, down to £192 per tonne from £240 previously.

Plastic, wood, steel, and paper/card all see moderate reductions in the range of 8% to 15%. For example, plastic fees have dropped by 13% from £485 to £423 per tonne, while paper and card decrease by 9% to £196 per tonne.

However, one outlier remains — fibre-based composites. This material sees a modest increase of 1%, pushing the fee up slightly from £455 to £461 per tonne. While the rise may appear small in percentage terms, it widens the cost gap between fibre-based composites and paper and card. The differential between the two has grown by a further £25, now standing at a hefty £265 per tonne.

Relative Price Signals

Defra’s published indices show how each material’s fee compares to the overall average, which is benchmarked at 100. Aluminium’s index has dropped substantially to 91, reflecting its new lower fee, while fibre-based composites have surged to an index of 158, underscoring the growing cost disparity. For most other materials, index changes are relatively minor.

These shifts matter because differential fees can influence packaging choices. With fibre-based composites getting more expensive, businesses may weigh alternative materials more carefully, potentially affecting both packaging design and sustainability goals.