Multiple industry sources told letsrecycle.com that Defra met on Monday (7 September 2026) and agreed to bring in measures to assist those that are currently set to fail compliance.
The government is not thought to be considering scrapping the PRN system, despite calls from some producers.
While the exact approach is yet to be confirmed, it is understood that producers and compliance schemes will likely not be subject to enforcement if they meet a certain percentage of their obligation, which will vary per material. It is believed that the exact methodology is still to be determined.
Sources said that, given the time this process will take, it is unlikely the industry will see the corresponding Regulatory Position Statement (RPS) before late September.
It was previously understood by letsrecycle.com that the RPS would only apply to the materials most at risk of missing their targets, these being plastics, wood and possibly steel.
Plastic PRN prices currently sit at their highest ever levels, with transactions on The Environment Exchange (t2e) currently recording at £650 per tonne and above.
What has caused the record-breaking prices?
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.
More recently, Defra identified a software bug which prevented exporters from beginning their accreditation applications.
The functionality to reapply for accreditation went live on Tuesday last week (1 September 2026).
However, it is understood that no exporter has managed to complete the process due to continued error messages.
Defra said that it is currently working to fix the issue – which applies to all four administrations – and that it expects it to be amended by Wednesday this week (9 September 2026) “at the latest”.
Carry-back to ease burden on producers
Experts from t2e called for Defra to consider allowing carry-back of January tonnage to be eligible for compliance in both 2026 and 2027.
This refers to tonnage which is accepted into reprocessors in January, and exported and receipted in January, which traditionally would not be included.
Angus Macpherson, Managing Director of t2e, said: “As t2e has advocated for many years, DEFRA should be considering a carry-back of January 2027 tonnage into the 2026 compliance year.
“This would partially compensate for the delays of up to 12 weeks between date of export and date of proof of receipt and consequent issuing point for PERNs prior to the 31 January deadline.
“Not only would this relieve a potential bottleneck whereby tonnage from December could be all carried forward into next year leaving insufficient for compliance for this year, but would also ensure that reprocessors and exporters would continue to benefit from PRN income, which is vital for maintaining the sustainability of the sector.”
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