Retailers urge Government to reform packaging charges as costs double

Retailers are calling on the Government to overhaul packaging charges after new data from the British Retail Consortium (BRC) revealed that packaging fees have doubled over the past year under the “outdated” Packaging Recovery Note (PRN) system.

PRNs are one of three overlapping packaging costs retailers face, alongside the Plastic Packaging Tax (PPT) and the government’s new £1.5 billion-a-year Extended Producer Responsibility (EPR) scheme. As a result, the BRC said retailers often end up being charged multiple times for a single piece of packaging.

According to the BRC, the average price per tonne for plastic PRNs has more than doubled, rising from around £180 in 2025 to over £370 in 2026. That surge means the retail industry’s total plastic PRN bill will rise by more than £100 million in a single year.

The organisation is urging the government to phase out the PRN system immediately and fold it into the EPR framework, arguing that a single, streamlined system would cut unnecessary red tape and put an end to this “triple charge.” PRNs were first conceived of nearly thirty years ago but the BRC said they are no longer fit for purpose.

Andrew Opie, BRC director of food &sustainability, said: “The Packaging Recovery Note system is outdated, inefficient, and completely unnecessary. Rather than charging retailers – and ultimately consumers – three separate times on the packaging they use, government should streamline this process and run recycling through its flagship EPR scheme. This would allow the government to save businesses and households £100 mullion, without compromising the UK’s recycling efforts.

“We need Government to simplify the system by folding PRNs into a single EPR framework. Furthermore, if they want to make a real difference to UK recycling rates, EPR funds must be ringfenced, guaranteeing that all money raised is used by local councils to create and operate a world class recycling system that collects and processes as much recyclable material as possible.”