Sarah Garry Oct 11, 2026
Government intervenes to ease packaging recycling pressures for 2026
Defra has announced temporary measures to address shortages of Packaging Waste Recycling Notes (PRNs) and export equivalents (PERNs), following concerns that businesses could struggle to meet their 2026 recycling obligations despite efforts to comply. The intervention follows changes intended to strengthen the system’s integrity, tackle fraud and improve transparency, which have constrained the availability of recycling evidence.
For brands, this is a welcome recognition that regulation must be supported by a system capable of delivering it. Uncertainty over the availability of recycling evidence makes compliance planning more difficult and adds pressure to businesses already managing substantial packaging costs.
What is changing?
In England, the Environment Agency’s new regulatory position statement sets minimum levels of 83% of the statutory recycling obligation for plastic, 92% for steel and 90% for wood. These percentages relate to each producer’s existing obligation; they are not new national recycling rates. Full obligations continue to apply to other packaging materials.
The statement does not amend statutory obligations: the Environment Agency will not normally take enforcement action where its conditions are met. A business falling short of its full statutory obligation will still have that recorded on its Certificate of Compliance, even if it meets the statement’s conditions. These arrangements apply only to the 2026 compliance year.
A more predictable system for brands
BBG welcomes this proportionate, albeit temporary, response to practical constraints in the recycling evidence market. However this also underlines the need for a more reliable, transparent and coherent packaging policy framework. Businesses need confidence that their expenditure supports better environmental outcomes, alongside realistic implementation and predictable compliance requirements.
Members should discuss the implications with their compliance scheme or adviser and check the relevant regulator’s arrangements for their jurisdiction.
We are currently working with other trade association stakeholders and will be writing to the Treasury and Defra to discuss this and other recycling measures which are impacting business, later this month. If you have any comments on how recycling regulations are impacting your business, contact Sarah.