IMPORTANT UPDATE

The UK government has officially signed off on the new Packaging Extended Producer Responsibility Regulations (pEPR), which will come into force on January 1, 2025. With the legislation now laid before Parliament, pEPR is set to reshape how the cost of household packaging recycling is recovered across all UK nations. A key update is that an industry-led Packaging Producer Organisation will support the practical implementation, working alongside a scheme administrator. This change aims to streamline EPR operations and enhance the efficiency of the system.

Under the regulations, producers must report on 2024 packaging data and start paying associated fees to cover local authorities’ costs to recycle household packaging waste . A notable feature is the modulation of fees based on packaging recyclability, set to start in 2026. These changes intend to incentivise sustainable packaging practices and ensure that producers pay the full cost associated with packaging disposal and recycling.

A quick recap on EPR legislation

In line with the UK Government’s ambitious sustainability goals, EPR is playing a key role in protecting our environment and reducing unnecessary waste. Other key measures in the Government’s Strategy include the Plastic Packaging Tax and bans of single-use plastic products launched in 2022.

If your business handles, imports or generates packaging, then you are likely to be impacted by EPR. 

Businesses impacted by EPR will be responsible for the full cost of disposing of their packaging when it becomes household waste. Initially, these fees will be based on material type and weight. However, in the future, recyclability will also play a crucial role.

The EPR fees have two key goals:

1. Fund the cost of collecting and processing waste
2. Encourage producers to use less packaging and choose more sustainable options

Affected businesses may also need to report packaging use and purchase Packaging Waste Recovery Notes (PRNs).

What’s the latest? Key changes to EPR in 2024 and important dates for your diary

EPR is now in place and producers will have recently completed their initial data submissions in April 2024 and be in the midst of preparing their H1 2024 submissions ahead of 1 October. 

Originally, the first EPR payment was due on 1 October 2024, however this has now been deferred a year until 1 October 2025. This means you will not need to pay any EPR fees in 2024.

From 31 March 2026, all packaging must be labelled ‘Recycle’ or ‘Do not recycle’ to help consumers dispose of their waste responsibly.

Who is responsible for PRNs under the new EPR obligations?

Packaging Recovery Notes (PRNs) subsidise the cost of recycling in the UK. EPR, on the other hand, covers 100% of the net cost of collection, treatment and processing of packaging waste.

In the new system, businesses impacted by EPR will need to submit granular packaging data once a year (or twice a year for ‘Large Organisations’), procure PRNs equivalent to the amount of packaging they’ve placed onto UK markets and pay a Local Authority Waste Management Fee.

For now, producers will be required to purchase PRNs to demonstrate that their recycling obligations have been met for the packaging they’ve placed on the market – just like they do under current legislation.

However, UK brand owners or importers of non-UK-based brands will now also be responsible for 100% of the net costs related to collecting household packaging waste

How do I know if my business is affected?

As well as the type of packaging, there are some other determining factors for financial liability. 

If your business undertakes any of the following, you’ll need to report your packaging usage at the very least:

• Selling Goods Under Your Brand: If your products are packaged with your brand’s logo, trademark, or any distinctive mark, you fall within EPR scope.
• Unbranded Packaging: If you place goods into unbranded packaging, you’re responsible.
• Importing Packaged Products: You’re liable for the packaging of imported products.
• Operating an Online Marketplace: You need to report packaging used by goods sold through your platform.
• Hiring or Loaning Reusable Packaging: If your organisation hires or loans out reusable packaging, you’re responsible.
• Supplying Empty Packaging: If you supply empty packaging to other businesses, you need to report it.

Essentially, if your business sells goods in your own branded packaging or under your own brand name, you’re likely to be impacted by EPR. Even if a third party is selling your goods on your behalf.

A third party, such as a supermarket, selling your goods under its own brand name? In this case, the third party would be responsible for any packaging costs and reporting.

How much will EPR cost?

Right now, the costs of compliance are shared across the supply chain. However, under EPR, 100% of the responsibility for a piece of packaging will be down to a single business – the brand owner, producer or importer. (Check out the list above to see if your business will be affected).

This means that many companies may see their share of cost move from around a third to 100%. As for packaging manufacturers, raw material converters and pack filling companies, their responsibility will become 0%.

Below, see the second release of illustrative packaging Extended Producer Responsibility base fees for 2025 to 2026 for all packaging materials, released by DEFRA 30/09/2024.

How can we help?