Recycle with TerraCycle and minimise EPR fees

TerraCycle partners with leading brands to recycle packaging not collected at kerbside. Our national take-back programmes can support you in avoiding Red-rated RAM penalties and manage EPR packaging costs more efficiently.

What is the Recyclability Assessment Methodology (RAM)? 

From 2025, all producers subject to the Extended Producer Responsibility (EPR) requirements must conduct a recyclability assessment on the packaging they place on the market. This assessment must be submitted to the government annually. 

The results will influence eco-modulated fees: packaging that is easier to recycle will incur lower fees, while harder-to-recycle packaging will cost more. 

Packaging will be classified Green, Amber, or Red, reflecting its recyclability. From October 2026, these ratings will determine the fees brands must pay under the UK EPR scheme. 

 

Who is impacted by RAM?

Any producer that meets all of the following criteria must submit to this Recyclability Assessment Methodology for their packaging: 

  • Annual turnover above £2M 
  • More than 50 tonnes of packaging placed on the UK market per year
  • The packaging produced is commonly disposed of by households or in public bins

EPR fees for Red packaging will double by 2028. Compliant take-back schemes offer a growing cost-saving opportunity.

How will the RAM impact how much a producer will pay? 

Different EPR fees will apply for Green, Amber and Red packaging. If packaging is classified as Red under the RAM, fees will be modulated from 2026 as follows: 

  • Producers will pay 1.2x the base fee in 2026
  • Producers will pay 1.6x the base fee in 2027 
  • Producers will pay 2x the base fee in 2028

Note: In the current guidance, Green and Amber packaging only pay the base fee, no additional charges.

2 Ways to avoid high fees:

  • Eco-design: Change Red packaging to make it more recyclable, so it can be rated Amber or Green. See RAM eco-design guidance here.
  • Recycling take-back system: Implement a nationwide recycling take-back program that enables consumers to return products for proper recycling, allowing the rating to shift from Red to Amber when no alternative solutions exist.

How TerraCycle’s take-back systems can help your business 

RAM guidance allows brands with Red packaging to avoid penalties by launching an accessible take-back recycling programme for their packaging. TerraCycle programmes meet all five RAM requirements:

TerraCycle programmes reach over 75% of the population via public drop-offs and mail-in options.

1. Accessible to at least 75% of the UK population - Mail-in and public drop-off collection and recycling systems are offered by TerraCycle. 

2. Does not compete with local authority collections -TerraCycle focuses on packaging not collected in standard recycling. 

3. Accepts all brands with similar formats - TerraCycle programmes can accept all brands and recycle many types of products and packaging.

4. Does not require proof of purchase to use the service - TerraCycle programmes are accessible to all, with no proof of purchase needed. 

5. Evidenced recycling - Every step is tracked, audited, and reported to ensure compliance. TerraCycle also conducts annual external audits with Bureau Veritas and conducts regular visits with customers.

If you wish to explore how a TerraCycle take-back scheme could support your business and reduce EPR fees, get in touch today.

Disclaimer: The information on this page is for informational purposes only and may change over time. Guidance from DEFRA and PACK UK is subject to revision, and producers should consult official sources for the latest requirements.