FPA Friday Digest

This week’s Digest opens with renewed parliamentary scrutiny of pEPR, following a Commons debate in which MPs warned that implementation risks undermining UK manufacturing, investment and material choice if unresolved issues are not addressed.

The debate follows the APPG for Packaging in the Circular Economy’s April meeting, where FPA Companies House research was cited in concerns that the current de minimis structure may be creating 'system discrimination' against visible, compliant businesses while less visible or fragmented operators avoid equivalent costs.

That theme of fairness and real-world deliverability runs through this week’s edition, from PackUK’s publication of RAM 2027 and continuing questions over pEPR thresholds, to PPWR implementation, DRS readiness and the infrastructure needed to make recyclability work in practice.

Commons debate puts pEPR delivery concerns under the spotlight

Packaging EPR was debated in the House of Commons this week, with MPs supporting the principle of producer responsibility but raising strong concerns about how the scheme is being implemented.

Sarah Champion MP warned that pEPR is creating serious unintended consequences for packaging manufacturers, including higher costs, lost contracts and investment, increased imports, inflationary pressure and possible material switching away from highly recyclable materials. She described the scheme as a “poorly designed, poorly implemented policy” and challenged government claims that EPR will create comparable jobs to those at risk in manufacturing.

Chris Bloore MP, chair of the APPG for Packaging in the Circular Economy, said businesses need “predictability, transparency and confidence”, warning that annual changes to recyclability methodology could undermine long-term investment. Will Forster MP also expressed disappointment that concerns raised in last year’s Westminster Hall debate had not been acted on.

The debate highlighted continuing concerns around glass, fibre-based composites, dual-use packaging, hospitality, social enterprises and the risk that innovative or renewable materials could be discouraged if fees and assessments do not reflect real-world outcomes. Mary Creagh confirmed a call for evidence later this year and a formal post-implementation review in December 2028.

FPA comment: "It's encouraging to see the increasing number of MPs and affected sectors pressing for earlier intervention, greater clarity and stronger evidence that the pEPR scheme is supporting, rather than undermining, manufacturing, investment and circular economy objectives".

PackUK publishes RAM 2027

PackUK has published the updated Recyclability Assessment Methodology (RAM) for 2027, setting out how large producers must assess household packaging recyclability for packaging placed on the market between 1 January and 31 December 2027. Producers should continue to use RAM version 1.1 for the 2026 reporting year. The updated methodology focuses on four stages – collection, sortation, reprocessing and application – and is intended to make assessments clearer, more consistent and more closely linked to real-world recycling outcomes.

Any questions about RAM 2027 should be directed to the PackUK service desk at EPRCustomerService@defra.gov.uk or call on 0300 060 0002.

FPA comment: "Producers would be well advised to treat RAM 2027 as an early prompt to stress-test their packaging portfolios, evidence trails and supplier assurances well before the 2027 reporting deadlines. Particular attention should be given to formats that may carry higher assessment risk, including those involving substances of concern, food-contact complexity, specialist recovery routes, take-back schemes, mixed materials or reliance on reprocessing capacity that is not yet established at scale".

Government confirms Year 2 pEPR modulation and evaluation focus

A new parliamentary written answer has confirmed the Government’s intention that pEPR fees will be modulated from 2026/27 onwards.

Responding to a written question on recycling, Circular Economy Minister Mary Creagh said that, from Year 2, packaging materials that are less recyclable will incur higher fees, while more recyclable materials will incur lower fees. The stated aim is to incentivise industry to transition towards more recyclable material.

FPA comment: "This is a reminder that pEPR is not simply a cost-recovery mechanism. The scheme is being positioned as a live policy lever, with recyclability, data quality and recycled content all likely to become increasingly important measures of success. It also strengthens the case for producers to retain clear evidence trails behind material choices, recyclability assessments and any recycled-content claims".

Digital Waste Tracking costs defended by Defra

Defra has defended the cost of Digital Waste Tracking as the first phase of implementation approaches.

In a Delegated Legislation Committee debate, Mary Creagh said permitted waste receivers will be required to make digital records and submit them within two working days of receiving waste. A further statutory instrument is expected next year to extend the system towards fuller end-to-end waste journey information.

The minister said business transition costs are expected to be just over £1.5m between 2026 and 2029, with software costs estimated at under £39m over 15 years. However, she argued these would be outweighed by savings from removing quarterly waste returns and reducing waste crime.

For packaging producers, the key point is that Defra expects Digital Waste Tracking to support pEPR system integrity, including by helping to reduce fraud and strengthen oversight of reprocessors and exporters.

FPA comment: "The practical concern for industry will be whether the new digital systems are interoperable, proportionate and sufficiently tested before obligations expand".

BBC highlights industry concerns over Wales-only glass DRS

BBC Wales has reported industry warnings that including glass in Wales’ Deposit Return Scheme could increase drink prices and reduce consumer choice, with the British Soft Drinks Association suggesting the policy could add around 50p to the cost of some bottles.

Wales is due to introduce DRS from October 2027 and will be the only UK nation to include glass bottles in scope. The Welsh Government says the scheme will help tackle litter, improve on-the-go recycling and support the transition towards reuse. However, industry concerns remain focused on cost, operational complexity and divergence from the rest of the UK.

Flexibles recycling: investment builds, but quality and food-contact remain the real test

Momentum behind flexible plastics recycling continued this week, with new capacity, further system research and renewed emphasis on quality all pointing to the same conclusion: flexibles are moving from policy ambition to delivery challenge.

Jayplas has announced plans to open two plastics recycling facilities in South Wales, supported by the Welsh Government. The sites, in Gorseinon and Tredegar, are expected to create 100 jobs by March 2028 and, once fully operational, will be capable of processing at least 100,000 tonnes of recycled flexible and rigid plastics a year.

The announcement follows growing focus on the need to close the gap between flexibles collection and flexibles reprocessing.

Hospitality VAT campaign underlines pressure on foodservice customers

Hospitality trade bodies have renewed calls for a VAT cut after new survey data suggested one in six UK hospitality businesses are at risk of failure within the next 12 months. The survey, conducted by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster, also found that 23% of respondents are operating at a loss, up from 15% three months ago, with 89% backing a reduction in hospitality VAT to 10%. The campaign has gained further attention as Ireland reduces its hospitality VAT rate to 9%.

£50m critical minerals package points to growing role for recycling and urban mining

Government has announced a £50m package to strengthen domestic critical minerals supply chains, including support for extraction, processing and recycling.

Although not packaging-specific, the announcement is relevant to the wider circular economy agenda because it recognises recycling and recovery as strategic sources of materials, rather than simply waste management activities.

Packaging compliance pressures begin to shape business valuations

Sustainable Packaging News reports that advisory firm Gerald Edelman is urging owner-managed packaging businesses considering a sale to move ahead before further compliance obligations affect profitability and valuations. The firm says EPR, Plastic Packaging Tax, eco-modulated fees and the forthcoming DRS are reshaping competitive dynamics, with buyers increasingly focused on businesses that can demonstrate strong compliance capability, sustainability credentials and stable customer relationships. The article suggests that regulatory pressure may accelerate consolidation and mid-market exits across the fragmented UK packaging sector.

Defra publishes 2026 list of common and limited kerbside collection items

Defra's guidance covers commonly collected – which refers to packaging collected at kerbside for recycling by at least 75% of local authorities across all 4 UK nations (England, Northern Ireland, Scotland and Wales) – and limited collection, which refers to packaging that is collected at kerbside for recycling by between 50 and 75% of local authorities across all 4 UK nations.

EPR organisation details template updated for closed-loop packaging waste

Defra has updated the EPR organisation details template to support 2026 registration for closed-loop packaging waste. The update, published on 26 June, adds a new column to the template and is a useful reminder that small changes to reporting documents can affect whether submissions are accepted, correctly categorised or complete.

Retailers call for PPWR grace period as August deadline approaches

European retailers and wholesalers are calling for clearer guidance and a 12-month grace period ahead of the first application date for the EU Packaging and Packaging Waste Regulation (PPWR)

EuroCommerce warned that, with the first PPWR provisions due to apply from 12 August, businesses still face uncertainty over outstanding technical requirements and practical implementation.

The intervention is significant because it reflects a wider concern that implementation pressure is now moving from policy teams into operational supply chains. For UK businesses placing packaging on the EU market, or supplying customers who do, the message is that PPWR readiness can no longer be treated as a distant issue.

FPA comment: "The Commission has already made clear that the regulation will not be reopened, so the more realistic question now appears to be how the first wave of requirements will be implemented in practice. Buisnesses with EU-facing supply chains should continue to monitor guidance closely and assess where product specifications, labelling, recyclability evidence and customer documentation may need to change".

Study links granular EPR fees with stronger recycling performance

A new EUROPEN-commissioned study by Circpack has found that EPR performance depends more on scheme design than simply on higher fee levels. Reported by EUWID, the study concludes that stronger recycling outcomes are associated with granular fee structures, clear operational responsibility, format-specific data and transparent methodology, rather than flat or basic weight-based fees. The findings are relevant as the UK prepares for Year 2 pEPR modulation, suggesting that fee design will only drive circularity if it is targeted, transparent and linked to real collection, sorting and recycling outcomes — with infrastructure remaining a particular barrier for flexibles, composite beverage cartons and other harder-to-recycle formats.

EU clarifies recycled-content calculation for PET bottles

The European Commission has published new rules on the calculation, verification and reporting of recycled plastic content in single-use plastic beverage bottles. The decision is intended to provide greater transparency and consistency in how recycled content is calculated, including across the plastic recycling value chain. The development is relevant beyond PET bottles because it reflects the direction of travel on evidence, traceability and verification of recycled-content claims.

Behind the California EPR lawsuit is a battle over who pays

Plastics News has used its latest Material Insights discussion to examine the escalating legal battle over California’s packaging EPR law, SB 54.

The issue follows a federal lawsuit filed by 17 Republican-led states and the National Association of Wholesaler-Distributors seeking to block California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act. The plaintiffs argue that the law places costs and obligations on businesses beyond California and gives too much authority to the producer responsibility organisation involved in implementation.

FPA comment: "For the UK, the significance is not the detail of Californian law, but the wider signal – as EPR schemes move from policy design into implementation, disputes over cost, scope, governance and enforceability are becoming increasingly prominent. The California case will be worth watching as other jurisdictions consider how far producer responsibility obligations can go, who should control scheme implementation, and how to balance industry deliverability with environmental ambition".

UK

GOV.UK: RAM 2027 – overview. Read more here

letsrecycle.com: PackUK tightens 'automatic red' criteria in RAM 2027 update. Read more here

The Grocer: Welsh food businesses call for DRS alignment with the rest of the UK. Read more here

Hospitality & Catering News: One in six hospitality venues at risk of closure as sector unites behind VAT cut. Read more here

MRW: Waste sector bodies launch consultation on net zero transition plan. Read more here

Packaging Gateway: Plastic waste report sharpens focus on supermarket packaging. Read more here

Packaging News: Two in three Brits concerned over hidden plastics in food packaging. Read more here

Convenience Store: The FED outlines growing concern over DRS delays in Wales. Read more here

EUROPE

EUWID Recycling and Waste Management: A study commissioned by Europen finds countries with granular EPR fee structures achieve higher recycling rates. Read more here

INTERNATIONAL

PR Newswire: Polypropylene market set for steady expansion as circular economy initiatives and packaging demand reshape global resin industry. Read more here

Packaging Gaateway: Study – Fibre-based food packaging to lead market by 2045. Read more here

Amcor webinar overview

Amcor’s recent 'PPWR Is Here – What You Need to Know Now' webinar offered a practical overview of the EU Packaging and Packaging Waste Regulation and what brand owners, retailers and packaging suppliers should be preparing for.

The session covered the main PPWR requirements, including PFAS and heavy metals restrictions, design for recycling, recycled-content obligations, eco-modulated EPR, labelling and packaging minimisation. It also looks at the different implications for food, beauty, healthcare, non-food and logistics packaging.

Date change for July Stakeholder Engagement Forum

Please note that the date to the next Circular Economy Stakeholder Forum meeting has changed from 07 July to 14 July.

No registration is required, the Microsoft Teams link accompanying each forum will provide direct access to that meeting. Stakeholders are advised to check future communications for updated joining details in the event that the original link supplied below fails to work for the new date.

July Forum – Tuesday 14 July: 14:30 to 16:00 Link to access forum

Save the date: FPA 2026 Environment Seminar

The FPA’s 2026 Environment Seminar will take place on Thursday 05 November 2026 at Stationers’ Hall, London.

As in previous years, the seminar brings together expert speakers, industry voices and sustainability specialists for a day of insight, discussion and networking, exploring the environmental challenges and opportunities shaping the foodservice packaging sector.

In 2026, for the first time, the seminar will be open to both FPA members and non-members, with members benefiting from a lower ticket rate. Early bird pricing will also be available this year – full booking details to follow shortly.

To help inform early career talent and support the next generation of sector leaders, the FPA is introducing a new initiative entitled 'Young Emerging Professionals (YEP)' for employees under 30-years-old and working within an FPA member company. Up to 10 free places at the Environment Seminar will be available under this initiative.

The programme and speaker line-up are currently being finalised, so watch this space for further announcements and for additional details about the new FPA YEP initiative.

FPA member survey

FPA members are being invited to share their views through a new member survey, issued this week via The FPA Insider.

The survey is designed to help the FPA better understand members’ current priorities, pressures and expectations, and to ensure that its policy work, member communications, events and support services continue to reflect the needs of the businesses it represents.

FPA members who have not seen the email containing the survey link can contact Lisa McGowan for further details.

Confidential input requested

Businesses with concerns about how pEPR is operating in practice – including issues relating to scope, competition, enforcement or unintended consequences, are invited to share their experiences in confidence with the FPA. We also welcome intelligence on potential gaps in scope, market distortions or suspected avoidance behaviours, which can be shared in confidence.

This insight is invaluable in ensuring industry concerns are effectively represented in our ongoing engagement with Defra, PackUK and the Environment Agency.

Please contact the compliance team directly via compliance@foodservicepackaging.org.uk. All information will be handled sensitively and used to inform our evidence base and policy discussions.

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FPA members receive early sight of this Digest on Thursday evenings, prior to distribution each Friday morning, and can view an archive of previous Digests within their FPA Dashboards or via this link

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The FPA Friday Digest

03 July 2026

PACKAGING REFORMS UPDATE