A method of handling packets within a packet-based communication system implementing a policy and charging control architecture. The method comprises, at one or more policy and charging enforcement functions within a packet switched access network or networks, monitoring packet flows to determine user usage on a per service class basis, and periodically reporting the determined usage from the policy and charging enforcement functions to a policy and charging rules function. At the policy and charging rules function, the received usage information is used in order to generate one or more one or more rule sets, each rule comprising one or more packet properties and one or more actions for handling a packet. The or at least one rule set is sent to the or each policy and charging enforcement function where they are applied in order to determine an action or actions for handling a packet.