The UK is now recycling twice as much as it did 3 years ago. The current 25% target was surpassed with an actual average recycling rate of 26.7%. See here.
The sorting part of the recycling loop is not coping with the increased recycled material coming to them. Only one fully automatic sorting system is in place within the UK and even it is not perfect. Different councils have different approaches to recycling. Some ask for material separation to be done by the householder and others have this done off-site. The latter encourages more recycling. See this BBC video.
The recycling loop is now global. For example, as previously blogged by The Coffee House, the empty containers at UK ports that have had their Chinese goods off-loaded are partially filled with paper and card for the return journey. In China this fulfills their increasing need for recycled material for packaging. With this global loop the energy use involved with recycling grows, which would seem to negate the whole point of material recycling! 😦