Alongside the illustrative base fees, PackUK has also confirmed the modulation policy, outlining how EPR fees will be adjusted from 2026 onwards to incentivise the use of more recyclable packaging.
For the first time, the published figures include indicative Red, Amber and Green fees, demonstrating how modulation will operate under the Recyclability Assessment Methodology (RAM). From Year 2, fees will be modulated as follows:
- Red-rated packaging: 20% higher than the Amber fee
- Green-rated packaging: 9% lower than the Amber fee
The table below illustrates how Red and Green modulation factors affect base fees for 2026, highlighting the potential cost impact of poor recyclability – or missing data – compared with more recyclable packaging formats.
Against current 2025 levels, the scale of these increases is significant. Illustrative red fees show plastics rising by 29%, with paper and card up 28% and glass increasing by 28%. For many producers, this represents a material uplift in EPR costs from 2025, even where packaging formats remain unchanged.
