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Defra invests £1.1b in UK councils to improve recycling services

Defra’s Mary Creagh has announced today (26 July 2025) that £1.1 billion will be invested into improving critical recycling infrastructure and collections.

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For the coming year, councils in England will receive a share to to be used to improve recycling services for residents.

It is expected that the funding – raised from the packaging reforms – be used to deliver improved packaging waste collection services, such as more streamlined recycling collections.

The funds could also go towards building new infrastructure or covering the costs of upgrading facilities where councils send household waste.

PackUK will be empowered to reduce future allocations if evidence shows that funding has been used for other purposes.

Circular economy minister, Mary Creagh, said: “This government is cleaning up Britain and ending the throwaway society. Under the Plan for Change, we are pumping more than £1 billion into local recycling services.

“This will revolutionise how we deal with our waste and ensure more of today’s rubbish is recycled into tomorrow’s packaging.”

The government said it was ending the “outdated regime” which saw the bill for disposing of “items like milk bottles, cereal boxes and soup tins” footed by local councils with taxpayers paying.

It added that Extended Producer Responsibility for Packaging (pEPR) will see packaging producers pay “their fair share” of recycling costs.

Delivering on the government’s Plan for Change, Defra hopes the investment will unlock regional growth, create new green jobs across the country and boost stagnant household recycling rates.

‘Fixing the foundations’: Reactions from the industry

Minister of state for local government and English devolution, Jim McMahon OBE MP said: “Clean and tidy streets are something everyone wants to see, and these common-sense reforms will help councils achieve that.

“Whether it’s channelling more money into recycling or reforming the outdated funding system, we are fixing the foundations of local government so that it can focus on what matters most to people across the country.”

Gavin Graveson, CEO at Veolia UK, said: “We look forward to supporting our local authority partners to invest in the essential services they provide to collect and recycle more materials, as well as supporting brands and producers to not only design for recyclability, but also include recycled content in their products. That’s how we’ll build a world-leading, profitable and sustainable circular economy.”

Executive director of the Environmental Services Association (ESA) 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.”

Councillor Adam Hug, environment spokesperson for the Local Government Association, said: “It’s positive to see the costs of managing packaging waste shift to the industry creating this waste. Councils are proud to run some of the best recycling services in the world, with high levels of public satisfaction despite significant financial pressures.

“This success is built on council’s local knowledge and strong links with communities, and we hope the new scheme will support that work and help reduce the amount of packaging ending up in household bins.”

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