The four UK regulators will issue Regulatory Position Statements (RPSs), or a Regulatory Statement (RS) in Wales, today (9 October 2026), setting out reduced compliance levels for producers and compliance schemes at risk of failing to meet their obligations.
Defra said the intervention followed changes introduced at the start of 2026 to strengthen the integrity of the PRN system, tackle fraud and improve transparency. The changes have reduced the number of accredited reprocessors and exporters and extended the time taken to issue export recycling notes, limiting the availability of evidence this year.
The department said the intervention was necessary because some producers and compliance schemes faced a risk of non-compliance, despite efforts to meet their legal obligations.
A Defra spokesperson commented: “We are alive to the concerns raised and are working with regulators on ways to reduce those pressures.
“The action being taken will support businesses who want to do the right thing, ensuring that we maintain strong recycling performance whilst setting ambition at the right level.
“We want to ensure the system works well for all stakeholders and delivers recycling outcomes. We will work with all sectors to achieve this.”
The department confirmed this is a temporary measure which applies to 2026 only.
Reduced compliance levels
The adjusted compliance levels apply to the 2026 compliance year and are intended to reflect the reduced availability of recycling evidence.
The revised levels are:
- Plastic: 83% of the original recycling obligation.
- Steel: 92% of the original recycling obligation.
- Wood: 90% of the original recycling obligation.
The Environment Agency has published its RPS, while the corresponding statements for Northern Ireland and Scotland, and the RS for Wales, are due to be published shortly.
The regulators will also introduce a new category on the public register to recognise businesses that have met their obligations under the adjusted arrangements.
Defra said the levels had been determined following analysis of the latest available data, discussions with the four regulators and devolved governments, and engagement with affected sectors.
It said the aim was to establish achievable obligations while ensuring the PRN system continued to support businesses in increasing recycling.
Defra also confirmed that compliance schemes meeting the adjusted levels would not be disadvantaged solely because their PRN and PERN acquisition levels fell below the original targets when their performance was assessed for approval in 2027.
Defra said producers and schemes could still seek to achieve 100% of their original obligations, but encouraged them to take a “proportionate and responsible approach” to purchasing evidence to ensure sufficient supply remained available across the market.
Robbie Staniforth, Chief Policy and Impact Officer at Ecosurety, commented: “This announcement demonstrates good custodianship of the packaging recycling system by Government officials. The decision to intervene has not been taken lightly and follows regular stakeholder engagement throughout the last few months.
“Having been close to the decision-making process throughout, we know that officials understand the need to incentivise recycling while being realistic about how much recycling can take place between now and the end of the year.
“The Government has access to more recycling data and intel than the rest of the market, so we hope that the thresholds have been chosen to best manage these two factors.”
Changes to the PRN system
Earlier this year, Defra rolled out the Record Reprocessed and Exported Packaging Waste service (RREPW) system, which was developed to replace the National Packaging Waste Database (NPWD).
The system sits within the UK’s Extended Producer Responsibility (EPR) for Packaging framework.
Operators are required to use the system to submit data for packaging which has been reprocessed or exported for reprocessing.
The service was meant to be rolled out in time for the start of 2026, but delays meant it only went live in mid-February.
This meant that for approximately the first six weeks of the year no one in the sector was able to issue PRNs.
At the same time, changes to when the PRN can be issued means that exporters are now having to wait until the point of receipt before they can release the corresponding Packaging Export Recycling Note (PERN).
This means that in some cases there is as much as a three-month delay before PRNs enter the system, setting many materials way behind target for 2026.
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