DEFRA announce changes to the PRN system following industry advocacy

We are pleased to have secured changes from DEFRA regarding the PRN system (thanks to all members who helped draft our letter to the Secretary of State a couple of weeks ago).

2026 Recycling Obligations for Plastic, Steel and Wood | Campaign Monitor

The following is from DEFRA:

'In summary, following detailed analysis and engagement with industry, the four regulators have agreed an intervention to address the exceptional shortfall in plastic, steel and wood PRNs. Environmental regulators will each issue a Regulatory Position Statement (RPS), or a Regulatory Statement (RS) in the case of Natural Resources Wales, lowering the volume of PRN affected producers and compliance schemes are expected to buy this year.

This means that for plastic, steel and wood, producers and schemes will not face enforcement action where they achieve the following reduced percentages of their 2026 recycling obligations

Plastic: 83% of obligation

Steel: 92% of obligation

Wood: 90% of obligation

This targeted intervention responds to current market conditions and is intended to provide certainty to all affected organisations. It sets obligations at levels which remain achievable, enabling compliance while continuing to support investment in recycling and progress towards higher recycling rates over the longer term.'

Our media response is as follows:

Tom Ironside, Director of Policy at the British Retail Consortium, said:

“This intervention will be welcomed by retailers, both as a sign of progress towards fixing the broken PRN system, and as a necessary step to reduce demand in the PRN market. The reduction to 83% of the statutory plastic obligation will lower pressure on prices, giving businesses a little more breathing space and supporting consumers in the process.

“It’s now critical that PRN savings are passed on to retailers, and that DEFRA provides clarity on how it will address the broken PRN market in 2027, ahead of the full system reform that’s really needed. Retailers will continue working to meet their obligations while delivering the best value for their customers.”