Background: why does the UK have recycled content targets?
The UK government introduced the Plastic Packaging Tax in April 2022 as part of a broader effort to increase the use of recycled materials and reduce plastic waste. The tax applies to plastic packaging manufactured in or imported into the UK that contains less than 30% recycled plastic content. The aim is to create a financial incentive to use more recycled material and to drive investment in the UK’s plastic recycling infrastructure.
Separately, the UK’s Extended Producer Responsibility (EPR) regime — which came into force for data reporting in 2023 and for fee payments from 2025 — places broader obligations on businesses that place packaging on the market. EPR and PPT are distinct but related frameworks. Sources: HMRC Plastic Packaging Tax guidance, DEFRA EPR guidance.
What’s changing and when
| Date | What changes | Who is affected |
|---|---|---|
| April 2022 | Plastic Packaging Tax introduced at ÂŁ200/tonne for packaging with <30% recycled content | UK plastic packaging manufacturers and importers |
| April 2023 | PPT rate increases to ÂŁ210.82/tonne | UK plastic packaging manufacturers and importers |
| April 2024 | PPT rate increases to ÂŁ217.85/tonne | UK plastic packaging manufacturers and importers |
| 2025 onwards | EPR producer fees begin for businesses placing packaging on the market; rates vary by material | Businesses placing >25 tonnes of packaging on the UK market per year |
| 2026+ | PPT rate expected to continue increasing; policy review ongoing | Plastic packaging supply chain |
What this means for your business
For cafes and coffee shops
If you’re currently using PP plastic lids or plastic cups, your supplier is either using ≥30% recycled content (and passing any associated cost on to you) or paying the Plastic Packaging Tax. Either way, the tax creates upward pressure on the cost of plastic packaging. Many cafes find that switching to CPLA or moulded fibre lids — which fall outside the PPT regime because they’re not made from plastic — removes this cost risk entirely and often delivers comparable total cost.
For restaurants and takeaways
Plastic takeaway containers, sauce pots, and carrier bags may all be subject to the PPT through your supplier. The direction of travel is clear: the UK is moving away from single-use plastic. Switching to kraft, bagasse, or other plastic-free packaging now means you’re ahead of the curve and not exposed to future tax rate increases. It also aligns with what an increasing number of customers actively prefer.
What you should do now
- Audit your current plastic packaging — Identify which items in your packaging kit are plastic. For each item, ask your supplier whether they’re meeting the 30% recycled content threshold or paying the PPT — and whether that cost is reflected in their prices to you.
- Look at plastic-free alternatives — For hot drinks, CPLA or moulded fibre lids replace PP plastic lids directly. For food containers, kraft paper, bagasse, and moulded fibre containers are all available at competitive wholesale prices. These materials sit entirely outside the Plastic Packaging Tax.
- Check your EPR obligations — If your business is large enough to place more than 25 tonnes of packaging on the market per year, you may have EPR reporting and fee obligations. Most independent cafes, restaurants, and takeaways fall below this threshold — but check the DEFRA guidance if you’re unsure.
How LumaPack can help
LumaPack’s core range is built around paper, kraft, and compostable materials — all of which sit outside the Plastic Packaging Tax. Switching to CPLA lids, bagasse containers, or kraft food containers means you’re using packaging that’s not subject to the PPT regime, reducing your exposure to any cost increases that flow from the tax. It also positions your business as aligned with the direction of UK packaging policy.
Browse LumaPack’s eco and compostable packaging range — UK wholesale, free delivery over £100, 24–48h dispatch.
Frequently Asked Questions
Does the Plastic Packaging Tax affect small food businesses directly?
The PPT is paid by UK plastic packaging manufacturers and importers, not directly by food businesses. However, suppliers may pass the cost on through higher prices. The main practical impact for food businesses is the upward price pressure on plastic packaging — which makes plastic-free alternatives increasingly cost-competitive.
What counts as “recycled content” under the Plastic Packaging Tax?
Recycled content means plastic that has been recycled from post-consumer or post-industrial waste and incorporated into the packaging. It must be verified through appropriate record-keeping. Virgin plastic, biobased plastic (such as PLA), and mechanically recycled plastic that hasn’t been through a qualifying process do not count. HMRC provides detailed guidance on what qualifies.
Is compostable packaging subject to the Plastic Packaging Tax?
No. The Plastic Packaging Tax applies to packaging that is predominantly plastic by weight. Compostable packaging made from materials such as bagasse, paper, CPLA, or PLA is not plastic and falls outside the PPT regime. This is one reason why compostable packaging is increasingly attractive for food businesses looking to manage packaging costs and regulatory risk.
What is the EPR scheme and does it affect my cafe or restaurant?
Extended Producer Responsibility (EPR) for packaging requires businesses that place packaging on the UK market above a certain threshold (currently 25 tonnes per year) to pay fees to fund packaging collection and recycling infrastructure. Most small independent food businesses fall well below this threshold. However, if your business produces or imports large quantities of packaging, check the DEFRA guidance to confirm your obligations.
