Plastic Packaging Tax changes effective April 2026
- andrewgibson
- 16 hours ago
- 2 min read
From 1st April 2026, the rate of Plastic Packaging Tax (PPT) will increase in line with inflation, rising to £228.82 per tonne for plastic packaging containing less than 30% recycled content.
Why is the government doing this - and what else is coming?
The original goal of PPT (first introduced in April 2022) was to encourage the use of recycled plastic - specifically by taxing packaging with under 30 % recycled content.
The 2025 Budget confirmed the inflation-linked rate hike for 2026 but also ruled out an immediate “escalator” or jump to a far higher rate (for example, no rise toward £500/tonne).
Looking further ahead, from April 2027, the government plans to allow the use of chemically recycled plastic using a so-called Mass balance approach (MBA) to count toward the 30% recycled content threshold. That means businesses using chemically recycled plastic (if certified) could avoid the tax on their packaging.
At the same time, “pre-consumer waste” - i.e. internal manufacturing scraps or off-cuts will no longer qualify as recycled content for PPT purposes.
There’s also a consultation planned in early 2026 on introducing a mandatory certification scheme for mechanically recycled plastic - meaning that to claim the recycled-content exemption, businesses may need to prove their recycled plastic via certified sources.
What this means - for businesses and consumers
For businesses manufacturing or importing plastic packaging, expect slightly higher charges from April 2026 on packaging with under 30% recycled content.
There’s renewed incentive to switch to recycled content - and especially look ahead to 2027, when chemically recycled plastic could count under the MBA (subject to certification).
Using pre-consumer waste to meet the 30% threshold will no longer work - so companies relying on internal reprocessing may need to source certified recycled plastic or pay the PPT.
For consumers: Any cost increases are more likely to come via companies passing on costs - but since packaging is only a small fraction of product cost, the effect on most retail prices should be modest.
What this means - for businesses and consumers
These changes reflect how the UK is shifting from simpler “use-recycled-or-pay-a-tax” rules toward a more nuanced, content and source-aware approach. The move toward chemically recycled plastics could stimulate investment and innovation in recycling technology, while the new certification requirements aim to ensure that “recycled content” really means recycled.
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