In its operational plan for 2026/27, the organisation also confirmed that year two per-tonne fees will not be set until all 2025 data has been submitted and validated by regulators, with final calculations expected in summer 2026.
First year of EPR highlights financial pressures
In the first year of operation, the scheme anticipated paying £1.44 billion to local authorities. Producers were invoiced a total of £1.46 billion, below the £1.523 billion required, to account for expected late registrants entering compliance.
PackUK says subsequent producer resubmissions and significant shifts in obligated tonnages exposed financial risks and highlighted the need for stronger data controls and more structured recalculation processes.
Two payments have already been made to local authorities, covering three quarters of the financial year, with quarterly payments expected to become standard going forward.
Subject to receipt of sufficient producer income, PackUK intends to make a fourth and final payment by 31 March 2026.
It was announced last week that the UK government had stepped in to cover the costs of the shortfall.
Data cut-off introduced for local authorities
According to the plan, PackUK will generally no longer consider new data submission for the 2026/27 assessment year after 1 May 2026.
Any information received after this date will instead be rolled into 2027/28.
Local authorities can still raise complaints if they believe calculations do not reflect legislative requirements. However, PackUK has said it will not facilitate recalculations indefinitely, citing the need for system stability.
The scheme administrator has indicated that, over time, it intends to bring this cut-off date earlier in the year as the system matures.
Structured recalculation windows for producers
Following widespread producer resubmissions in year one, PackUK has also set out a more controlled recalculation timetable for 2026/27.
It intends to:
- Issue first notices of liability by July 2026
- Conduct a formal recalculation in November 2026
- Carry out a year-end recalculation in late March/early April 2027
- Retain a potential fallback recalculation in February 2027
After 1 October 2026, PackUK will no longer recalculate notices of liability for producers who resubmit data that reduces their obligation.
PRO appointment expected in March 2026
The scheme administrator confirmed that it aims to formally appoint a producer responsibility organisation (PRO) this month (March 2026).
The PRO application process ran from November to December 2025. Once appointed, the body will operate as an independent, producer-led organisation working alongside PackUK.
The organisation is expected to take on delegated functions, including developing modulation and RAM methodologies, leading on communications and public information and providing operational support.
PackUK will remain responsible for sovereign functions such as data ownership, fee-setting and payment administration.
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