This month, local authorities in the UK received letters from PackUk on their anticipated packaging Extended Producer Responsibility (pEPR) payments for 2025-26.
Whilst LARAC welcomes the receipt of this information, concerns and questions have come about from both the delay and the subsequent impact of receiving these details, the lack of clarity and transparency on the calculations, and how future payments will be maintained.
In particular, the latest figures have caused significant concerns in Scotland, where local authorities have seen significant reductions in their payments, with some reporting decreases in excess of 30% from the indicative figures provided at the end of 2024. This is at odds with the other nations – England and Northern Ireland having seen an increase overall, although changes in individual authority payments vary.
Scottish authorities are understandably frustrated by the significant short-term disruption to waste service planning, as well as the lack of clarity around why these changes have occurred and why they are so significant and specific to Scotland. The details on binned litter payments that have been promised by the devolved governments for Scotland and Wales also remain unclarified.
Cathy Cook, Chair of LARAC, commented:
“Whilst it’s reassuring to see the pEPR payment information finally received by local authorities, it has raised several questions. In England, we are still unclear about the ‘top-up’ payments for any pEPR shortfall in future years, and we expect further details on future payments, along with guarantees of pEPR payment amounts beyond 2025-26. In Scotland, the situation remains particularly challenging, with a lack of clarity around why certain changes have been made to payments and their disproportionate impact”
Solomon Ede, LARAC Scotland Rep, commented:
“There is significant concern among Scottish local authorities, particularly due to the lack of transparency around how figures were calculated and the substantial changes from the estimates shared last November.
Scotland has seen a reduction of around £15 million in first-year payments, seemingly due to changes in how local authority characteristics; such as housing type, rurality, and infrastructure, have been grouped. Applying the same approach across the UK does not always reflect the distinct realities in Scotland.
These sudden funding shifts create real challenges for local planning and add uncertainty around future pEPR funding. It's difficult to focus on Year 2 when fundamental issues remain unresolved in Year 1.
Concerns have also been raised about the gate fee data, drawn from a limited sample of UK local authorities, with only a small number from Scotland. If the methodology was informed by data and engagement primarily focused on England, this risks disadvantaging devolved nations in a scheme meant to be UK-wide.
LARAC urges PackUK and the Scottish Government to engage meaningfully to address these challenges and ensure the process is transparent, fair, and reflective of Scotland’s circumstances.”
Cathy added:
“Since the start of the year, the topic of ringfencing pEPR funds for UK local authorities, so they are only able to spend them on waste services, has been high up the agenda. The language in the latest letters confuses matters further, confirming that whilst pEPR funds aren’t ringfenced, the door is seemingly open for payments to be taken back if the money isn’t spent on waste services.
“Overall, whilst engagement with PackUK, DEFRA, UK Government and the devolved bodies has improved significantly this year, further transparency and clarification on these key details is urgently needed.”
LARAC remains committed to working with all stakeholders to ensure local authorities receive the clarity and funding security they need to deliver effective waste and recycling services and is meeting with PackUk in the next few days to clarify some of these matters.
Images (sources for all: DEFRA Joint Stakeholder Forum webinar - 21 July 2025)
View a recording of the webinar HERE
For further information please contact Toni McNamara, Executive Director on admin@larac.org.uk / 01982 382 650.
Twitter: @LARACspeaks
LinkedIn: www.linkedin.com/company/larac/
