Removal of the PRN System

The Packaging Recovery Note (PRN) system in the UK has been in operation since 1997. It is a producer responsibility system which requires companies who put packaging on the market to pay for the recycling of an equivalent amount of packaging waste. It is designed to help the UK meet recycling targets. Producers get evidence of recycling taking place by buying PRNs and Packaging Export Recovery Notes (PERNs) from accredited reprocessors and exporters. PRN and PERN prices fluctuate based on the amount of evidence available. If the UK is going to easily reach its target, then prices fall but if evidence is limited then prices increase. The system is designed to encourage more recycling when evidence is low by providing more funds to the reprocessor / exporter.

The British Plastics Federation (BPF) has been raising concerns with the PRN system for over 20 years. These concerns include it providing more support for exporters than domestic reprocessors and fraud within the system.

There have recently been calls for the removal of the PRN system without a replacement being put in place.

What support does the PRN system provide?

It is well documented by the BPF and others that there are shortcomings with the current PRN system. Current legislation and regulatory frameworks, including the PRN system, do not provide sufficient support for UK recycling. This is evidenced by the closure of many recycling facilities, resulting in a significant loss of domestic recycling capacity (17 UK plastic recycling facilities with a combined annual processing capacity of 400,000 tonnes have become non-operational in the last 3 years). Recyclers do not feel that they get the full benefit of the PRN system as the value they receive is reflected in the prices of input material they buy.

However, despite its limitations, the PRN system is the only packaging legislation which directly supports recyclers with Extended Producer Responsibility only covering collection and disposal (not recycling). Removal of the PRN system without a viable replacement would create a ‘cliff edge’ which would be highly disruptive and potentially catastrophic for the UK plastic recycling industry. Having operated for 30 years the PRN system is so entangled into market dynamics that its sudden removal would create a shock in the system which particularly small companies would not be able to withstand.

Should the current PRN System be maintained in its current form?

The PRN system needs to be reformed as it is not effective in its current form. However, equally it should not be removed without an equivalent support mechanism being available for reprocessors. The PRN system requires significant reforms to improve transparency, eliminate  opportunities for fraud, improve support for domestic recycling, and also ensure funds are properly directed to reprocessors.  The BPF have been actively involved with Defra on PRN reform and seeing these reforms, and further reform, delivered is essential. As part of this, alternative systems, which still financially support the recycling industry, should be explored and these analysed against the current system to see the difference in approach and outcomes. Industry should be actively involved in this development. Any reforms need to ensure that legitimate companies can work effectively without further barriers whilst tackling waste crime.

In conclusion…..

The BPF support retaining the PRN system but with significant reforms to make it an effective mechanism to drive recycling. A sudden removal without an alternative financing mechanism would have a significant impact on the plastic recycling sector and is likely to lead to further closures. Substantial unintended consequences would be expected because of how entangled the PRN system is with the whole plastic recycling supply chain. At a time when the UK government is trying to move towards a circular economy this could significantly set this back.

The BPF would like to see work continuing on PRN reform and ensure that the system is delivering its aim of supporting the growth of recycling in the UK.

Published on 24th June 2026