# Plastic Packaging Tax url: https://whereyourmoneygoes.co.uk/plastic-packaging-tax/ updated: 29 September 2026 licence: Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). Figures: each source's own licence, listed under Sources. publisher: [Tekstak Ltd](https://tek-stak.co.uk) # Plastic Packaging Tax Last updated 29 September 2026. Figures refresh every night. [How each figure is worked out](/methodology/). **A charge per tonne on plastic packaging containing less than 30% recycled plastic, aimed at creating demand for recycled material.** Manufacturers and importers of packaging, and through them anyone buying packaged goods. It raised **£256m** in 2025–26, which is 0.0% of everything HMRC collects and 0.01% of the economy. That is up £3m (1.2%) on the year before. Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk). ## Key figures - £256mRaised in 2025–26 ▲ - 0.0%Of everything HMRC collects ▬ 2025–26 - 0.01%Of the whole economy (GDP) ▬ 2025–26 - -11.9%In real terms, against the 2023–24 peak Adjusted for inflation with the GDP deflator As of 6 April 2025 Sources: [HM Revenue and Customs](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk), [HM Treasury](https://www.gov.uk/government/collections/gdp-deflators-at-market-prices-and-money-gdp). ## What is the short version? - **How big:** £256m in 2025–26, 0.0% of everything HMRC collects; after inflation, 13% more than in 2022–23. - **Latest change, 2022:** Takes effect at a rate per tonne, with the 30% recycled content threshold. - **Where it goes:** Nowhere in particular, like almost every tax: it is not earmarked. - **The argument:** It creates a dependable market for recycled plastic; against that, food-contact rules limit recycled content in exactly the packaging that is most common. ## How much does it raise? **Plastic Packaging Tax receipts, cash and real terms** **The numbers behind this chart** | Financial year | Cash | Real, 2025-26 prices | | --- | --- | --- | | 2022–23Details | £200m | £227m | | Real, 2025-26 prices£227m | | | | 2023–24Details | £270m | £291m | | Real, 2025-26 prices£291m | | | | 2024–25Details | £253m | £262m | | Real, 2025-26 prices£262m | | | | 2025–26Details | £256m | £256m | | Real, 2025-26 prices£256m | | | Figures for the 2025–26 financial year. Source: [HM Revenue and Customs](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk), [HM Treasury](https://www.gov.uk/government/collections/gdp-deflators-at-market-prices-and-money-gdp). **How "real terms" is worked out** Real terms use HM Treasury's GDP deflator, rebased to 2025-26 prices. That is the measure the Treasury and the OBR use for public finances; the consumer price index is the right one for a shopping basket, not for the size of the state. ## How does it work? The tax applies to plastic packaging made in or imported into the UK where less than 30% of the plastic is recycled. Hit the 30% threshold and no tax is due on that packaging at all. That cliff edge is deliberate. The aim is not to raise money from plastic but to create a reliable market for recycled plastic, which had previously been more expensive than new material. Small producers below a tonnage threshold are outside it, to keep the administrative burden proportionate. ## How has it changed? How it got here, and why each change was made: - **2018**Announced following a public consultation that attracted an unusually large response about plastic waste. - **2022**Takes effect at a rate per tonne, with the 30% recycled content threshold. ## Where does the money go? **Nowhere in particular.** The Plastic Packaging Tax is not earmarked. It goes into the Consolidated Fund and is spent on whatever the government of the day decides. Because it is not earmarked, the only honest way to show what it pays for is by proportion. If plastic packaging tax receipts of £256m were spent in the same proportions as all public spending in 2025-26, they would break down like this. It is an illustration of scale, not a statement about where those particular pounds went. **If £256m of plastic packaging tax were spent like all public money in 2025-26** - 1. Social protection, including the state pension £85m 33.2% of spending - 2. Health £54m 21% of spending - 3. Debt interest £27m 10.6% of spending - 4. Education £26m 10.2% of spending - 5. Economic affairs, including transport £20m 7.7% of spending - 6. Defence £14m 5.3% of spending - 7. Public order and safety £12m 4.5% of spending - 8. General public services £7m 2.9% of spending - 9. Housing and community £5m 1.8% of spending - 10. Environment £4m 1.6% of spending - 11. Culture, media and sport £3m 1.2% of spending Spending shares from HM Treasury’s Public Expenditure Statistical Analyses. An illustration of scale, not where these particular pounds went. **Show as a table** | Name | Equivalent share of plastic packaging tax | | --- | --- | | 1. Social protection, including the state pension | £85m | | 2. Health | £54m | | 3. Debt interest | £27m | | 4. Education | £26m | | 5. Economic affairs, including transport | £20m | | 6. Defence | £14m | | 7. Public order and safety | £12m | | 8. General public services | £7m | | 9. Housing and community | £5m | | 10. Environment | £4m | | 11. Culture, media and sport | £3m | See [for every £100 of tax](/for-every-100-pounds-of-tax/) for the full picture. ## Does it change what people do? Like the soft drinks levy, it is designed to be avoided by changing the product. Early evidence suggests it increased demand for recycled plastic, though supply constraints and the food-contact rules limit how far some packaging can go. Receipts have stayed modest, which is the intended direction. [When a tax rise stops raising money](/when-tax-rises-lose-revenue/) looks at the cases where the effect has been large enough to move the revenue. ## What are the arguments? ### The case for it - It creates a dependable market for recycled plastic. - The threshold is a clear target rather than a gradual penalty. - It is avoidable by doing the thing the policy wants. - Administrative burden falls on producers, not consumers. ### The case against - Food-contact rules limit recycled content in exactly the packaging that is most common. - A single 30% threshold gives no reward for going further. - Costs reach consumers through prices with no visibility. - It addresses recycled content rather than the total amount of plastic used. Both columns are set out as their strongest case, not as a preferred answer and a strawman. See [how this site handles contested questions](/neutrality/). ## Common questions What is the plastic packaging tax? A charge per tonne on plastic packaging containing less than 30% recycled plastic, aimed at creating demand for recycled material. Manufacturers and importers of packaging, and through them anyone buying packaged goods.How much does plastic packaging tax raise? £256m in 2025–26, which is 0.0% of everything HMRC collects.Where does plastic packaging tax go? Nowhere in particular. The Plastic Packaging Tax is not earmarked. It goes into the Consolidated Fund and is spent on whatever the government of the day decides. ## Use this data The figures belong to the bodies that published them and are used under their terms, listed in [Sources for this page](#sources); most are Crown copyright under the Open Government Licence. Only our own words, analysis, charts and derived calculations are ours, published under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/): reuse them, including commercially, if you credit [Tekstak Ltd](https://tek-stak.co.uk) and link back to this page. ### Download - [Plastic Packaging Tax receipts by financial year (CSV)](/data/receipts-plastic-packaging-tax.csv) [JSON](/data/receipts-plastic-packaging-tax.json) HM Revenue and Customs: [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) - [Total HMRC receipts by financial year (CSV)](/data/receipts-total.csv) [JSON](/data/receipts-total.json) HM Revenue and Customs: [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) - [All data, field definitions and licences](/data/) ### Embed the live figure Paste this into your page. It updates itself every night and links back here. Embed code ## Sources for this page | Source | Publisher | Figures as of | Updated | Licence | | --- | --- | --- | --- | --- | | [HMRC tax receipts and National Insurance contributions for the UK](https://www.gov.uk/government/statistics/hmrc-tax-and-nics-receipts-for-the-uk) | HM Revenue and Customs | the 2025–26 financial year | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | | [GDP deflators at market prices, and money GDP](https://www.gov.uk/government/collections/gdp-deflators-at-market-prices-and-money-gdp) | HM Treasury | the 2025–26 financial year | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | Each source's figures are used under the licence shown. Our own words, analysis, charts and derived calculations are ours, under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/). ## Related pages - [Next in this section: Climate Change Levy](https://whereyourmoneygoes.co.uk/climate-change-levy/) - [Which is my council, and how do all the councils compare?](https://whereyourmoneygoes.co.uk/councils/) - [What do renewables levies cost me?](https://whereyourmoneygoes.co.uk/renewables-levies/) - [How much is council tax and what does it pay for?](https://whereyourmoneygoes.co.uk/council-tax/) ## More from this publisher - [UK tax calculators](https://howlongisit.co.uk) Published by [Tekstak Ltd](https://tek-stak.co.uk). Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). The figures belong to the publishers listed under Sources and are used under their licences. Figures last updated 29 September 2026.