The government announced today that they will invest £1.1 billion to improve local recycling services across England, as well as a new recycling scheme which will reduce costs for the taxpayer, in its drive to reform the way waste is collected in the UK.
Councils will receive £1.1 million to improve recycling services for residents. The funding is intended to offer local residents more streamlined recycling collections which can ensure more household waste is recycled.
It will also go towards building new infrastructure or covering the costs of upgrading facilities where councils send household waste.
Another key aspect of the changes includes a new Extended Producer Responsibility for Packaging Scheme will mean that businesses who produced packaging will have to pay their fair share of recycling costs.
The scheme works by charging fees to the businesses that use packaging to meet the costs of collecting and recycling it. The costs will be higher for materials that are harder to recycle and less where packaging can be reused or refilled.
It is hoped the scheme will encourage companies to reduce the amount of packaging they use, whilst reducing costs for consumers.
Circular Econonomy Minister Mary Creagh, who made the announcement, said: “This government is cleaning up Britain and ending the throwaway society.
“This will revolutionise how we deal with our waste and ensure more of today’s rubbish is recycled into tomorrow’s packaging.”
Cllr Adam Hug, environment spokesperson for the Local Government Association, also reacted to the news by saying: “It’s positive to see the costs of managing packaging waste shift to the industry creating this waste.
“Councils are proud to run some of the best recycling services in the world, with high levels of public satisfaction despite significant financial pressures.
“This success is built on council’s local knowledge and strong links with communities, and we hope the new scheme will support that work and help reduce the amount of packaging ending up in household bins.”
The announcement comes within the context of further reforms by the government to waste collection. The government is introducing, for example, a Deposit Return Scheme in 2027, which will provide a financial incentive to return empty drinks containers to a collection point.
Additionally, Simpler Recycling for workplaces was introduced in March 2025 and will launch for households in March 2026. This will boost recycling rates and reduce the amount of waste sent to landfill.
Finally, the government’s Circular Economy Taskforce is working with sectors to create a series of specific roadmaps to improve and reform the approach to using materials, underpinned by a Circular Economy Strategy which will be published in autumn.
The new government funding and packaging reforms were also welcomed by a wide range of other figures, including Jim McMahon OBE (Minister of state for Local Government and English Devolution), Gavin Graveson (CEO of waste management company Veolia UK), Jacob Hayler (Executive Director of the Environmental Services Association), Jim Bligh (Director of Corporate Affairs and Packaging at The Food and Drink Federation) and Libby Peake (head of resource policy at Green Alliance).
The Extended Producer Responsibility for Packaging scheme is a crucial part of the government’s packaging reforms, which industry estimates will support 25,000 new jobs and underpin £10 billion of investment in new sorting and processing facilities over the next decade.
Alongside the Extended Producer Responsibility for Packaging, the government is introducing a Deposit Return Scheme in 2027. This will provide a financial incentive to return empty drinks containers to a collection point, such as at their local supermarket, so that bottles or cans will be recycled.
A sensible and pragmatic approach to the collection of materials from households and workplaces is also being introduced. Simpler Recycling for workplaces went live in March 2025 and launches for households in March 2026. It will boost recycling rates and reduce the amount of waste sent to landfill.
The action to clean up Britain doesn’t end there – with the Circular Economy Taskforce working with sectors to create a series of specific roadmaps to improve and reform the approach to using materials, underpinned by a Circular Economy Strategy which will be published in autumn.
Featured image via Alex Yeung / Shutterstock.
