The government is investing £1.1 billion to improve recycling services nationwide, funded by the new Extended Producer Responsibility (EPR) scheme. Under this system, businesses that produce packaging will cover the costs of recycling, shifting the financial burden away from local councils and taxpayers.
The funding will help councils upgrade recycling collections, build or improve infrastructure, and increase household recycling rates. The scheme incentivises businesses to reduce packaging, use recyclable materials, and design products for reuse, cutting waste sent to landfills or incinerators.
Circular Economy Minister Mary Creagh said the investment would “revolutionise waste management” and support the transition to a circular economy.
The EPR scheme is part of wider government reforms, including a Deposit Return Scheme in 2027 and the Simplified Recycling initiative for workplaces (launched March 2025) and households (from March 2026). Together, these measures aim to create 25,000 jobs, unlock £10 billion in infrastructure investment, and underpin the UK’s Circular Economy Strategy, due this autumn.
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