There is no UK Circular Economy Act

Why there is no “Circular Economy Act”

The phrase “Circular Economy Act” is widely searched, but as of June 2026 no UK statute carries that title.

Other jurisdictions have consolidated laws — China’s Circular Economy Promotion Law, France’s anti-waste law — but the UK has taken a different route.

Instead, circular-economy duties sit inside a framework statute and a set of fiscal and regulatory instruments. The framework is the Environment Act 2021, which gives ministers the powers to introduce extended producer responsibility and deposit schemes by secondary legislation^[1].

On top of that sit the live measures: the packaging EPR scheme, the Plastic Packaging Tax, and a forthcoming Circular Economy Strategy being designed by an independent taskforce.

The sections below take each in turn.

The Environment Act 2021 and what it enables

The Environment Act 2021 is the closest thing the UK has to a circular-economy framework law. Rather than setting detailed rules itself, it grants powers that ministers then use through regulations^[1].

Two of those powers matter most. The Act allows the government to make producers responsible for the costs of managing the packaging they place on the market — the legal basis for extended producer responsibility — and to establish a deposit return scheme for drinks containers^[1].

It also underpins resource-efficiency and eco-design requirements, and consistent recycling collections in England.

The practical effect is that the detail arrives through statutory instruments, not through a single headline Act.

Extended producer responsibility for packaging

Extended producer responsibility (EPR) shifts the cost of managing packaging waste from local authorities to the businesses that place packaging on the market.

The UK packaging EPR scheme — pEPR — is the single most significant live circular-economy obligation for most companies.

The scheme administrator, PackUK, published the confirmed 2025 base fees on 27 June 2025, and the first invoices to producers were issued from October 2025^[2].

Fees are charged per tonne of household packaging placed on the market, and vary by material — from glass at the lower end to fibre-based composites at the higher end^[2]. From the 2026–27 assessment year, fees will be modulated by recyclability, so packaging that is harder to recycle will cost more.

The Plastic Packaging Tax

The Plastic Packaging Tax is a separate instrument, run by HMRC rather than DEFRA.

It targets plastic packaging that contains less than 30% recycled content, creating a financial incentive to design in recycled material.

The rate is £223.69 per tonne from 1 April 2025, having risen each year from £200 per tonne when the tax began in 2022^[3]. From 1 April 2026 the rate rises again to £228.82 per tonne, uprated in line with CPI inflation^[6].

Registration is triggered by volume, not by liability: a business must register if it manufactures or imports 10 tonnes or more of finished plastic packaging in a 12-month rolling period, even where all of it meets the 30% recycled threshold and no tax is due^[3].

The Deposit Return Scheme

The deposit return scheme (DRS) adds a refundable deposit to in-scope drinks containers, reclaimed when the empty is returned. All four UK nations plan to start their schemes on 1 October 2027^[4].

In England, Scotland and Northern Ireland the scheme will cover single-use containers between 150ml and 3 litres made from PET plastic, steel and aluminium — but not glass^[4]. Wales plans to include glass on a different basis.

A flat 20p deposit has been confirmed for England, Scotland and Northern Ireland. The legal powers come from the Environment Act 2021, with Scotland relying on the Climate Change (Scotland) Act 2009^[4].

The Circular Economy Strategy

The government has not consolidated these measures into one Act, but it is building a strategy. An independent Circular Economy Taskforce was established in November 2024 to co-design a Circular Economy Strategy for England^[5].

The taskforce has focused on five priority sectors where circularity could deliver most: textiles, transport, construction, agri-food, and chemicals and plastics^[5]. Each sector is to get its own roadmap of actions and recommendations.

The strategy — latterly described as a Circular Economy Growth Plan — is expected to be consulted on during 2026^[5]. It is policy, not statute: it will shape future regulations rather than itself create a single Circular Economy Act.

The link to sustainability reporting

For a sustainability-reporting audience, the circular economy is not a side issue.

Packaging fees, recycled-content data and waste flows are exactly the kind of resource-use information that increasingly appears in corporate disclosure.

As the UK Sustainability Reporting Standards take effect, resource use and circularity move from voluntary narrative into structured reporting for in-scope companies.

The data a business already gathers for EPR and the Plastic Packaging Tax becomes reusable evidence.

For the theory behind these measures, see our circular economy explainer; for how the broader disclosure regime fits together, see the ESG reporting requirements map.

Circular economy law: frequently asked questions