Until recently, UK manufacturers and retailers were only responsible for part of the cost of dealing with the packaging waste they produced. Under the old producer responsibility system, businesses typically paid towards recycling and recovery through shared compliance schemes, while local authorities shouldered most of the collection and disposal costs.
The UK’s Extended Producer Responsibility (EPR) scheme is changing how organisations manage recycling, requiring packaging producers to cover the full costs of their waste.
The guidelines aim to reduce carbon emissions and enhance product circularity. However, they pose significant challenges for small and medium-sized manufacturers.
What is the Extended Producer Responsibility (EPR) scheme?
The Extended Producer Responsibility scheme is a government scheme that shifts the full cost of packaging waste management from citizens and councils to producers. It applies to businesses that import, manufacture or supply packaged goods above a certain threshold.
Under the new UK rules, introduced in 2023, businesses supplying more than 25 tonnes of packaging per year and with a turnover exceeding £1 million are classified as producers and must comply with the scheme.
These requirements differ from previous regulations in that they hold producers directly responsible for the entire lifecycle of their packaging, from collection to disposal.
In the UK, the EPR rules currently apply mostly to packaging, electrical and electronic equipment and batteries. There are plans to expand it to construction equipment, tyres and other complex waste streams.
WRAP (which advises governments on compliance and best practice) has recommended EPR for the UK’s fashion and textiles industry. WRAP is suggesting improved product labelling and support for waste collections tailored to individual needs.
The EPR is closely tied to the UK Plastic Packaging Tax, which was introduced to penalise packaging with less than 30% recycled content. Businesses will often find themselves reporting to both schemes, and some of the data requirements overlap.
EPR is also linked to the wider ambitions of the Environmental Act 2021. This legislation underpins reforms such as deposit return schemes (DRS) for drink containers, as well as changes to food waste and recycling collection.
Why is the scheme being introduced?
The main aim of the EPR scheme is to create a circular economy, where waste is minimised and materials are reused, recycled or repurposed instead of being discarded after a single use. The Government wants to encourage producers to design packaging that is easier to recycle and to avoid unnecessary or problematic materials. It hopes that the scheme will increase recycling rates of packaging to 76%.
This initiative also supports the UK’s wider plans to meet Net Zero targets and fulfill the objectives of the Environmental Act 2021.
These changes address some criticism that previous regulations put too much cost and responsibility on local authorities and the public. With more than 2 million tonnes of packaging waste generated annually in the UK, EPR aims to increase recycling rates, reduce issues such as plastic pollution, and encourage producers to consider environmental impacts during product development.
Where is the scheme right now?
The EPR scheme is now being implemented by many UK businesses. If your business meets the £1 million turnover and 25-tonne packaging thresholds, you must collect and submit detailed packaging data. Large producers, with a turnover of more than £2 million and more than 50 tonnes of packaging, must submit data twice a year by 1 April and 1 October. Small producers need to submit data once a year by 1 April.
This data submission includes “nation data”, which refers to the countries within the UK where the packaging is supplied or discarded.
An organisation must submit nation data (information about which nation in the UK packaging is supplied and which nation it’s discarded in) under the EPR scheme if it does any of the following:
- Supplies filled or empty packaging directly to customers in the UK who are the end users of that packaging
- Supplies empty packaging to other UK organisations that are not legally obliged under EPR or are classed as small organisations
- Hires or loans out reusable packaging
- Owns an online marketplace through which organisations external to the UK sell their empty packaging or packaged goods to UK customers
- Imports packaged goods into the UK for its own use and then discards the packaging
This data-driven approach to compliance is becoming more and more necessary in order to contribute to a more circular waste system.
How much does it cost, and how are the fees calculated?
For large producers, the new regulations extend beyond just reporting. These organisations must now pay fees that cover the full net costs of managing household packaging waste, including collection, sorting and recycling.
Costs vary based on the type of packaging used. For example, dealing with hard-to-recycle plastics costs more than recyclable card or glass. This fee structure has been introduced to encourage the use of more sustainable packaging materials.
The fees are calculated by dividing local authority packaging waste management costs by the total amount of household packaging placed on the market, resulting in a fee per tonne. Companies can use Packaging Recovery Notes (PRNs) to demonstrate compliance.
The framework seems to be clear but there still remains uncertainty around aspects of the EPR scheme.
Firstly, there are ongoing updates to the fee structures for different packaging materials. While guidance from DEFRA and environmental consultancies has released initial “illustrative” fees, the Government has indicated that these rates are only temporary and could change depending on the economic climate, political pressures or specific requirements of individual local authorities.
There is also some ambiguity regarding enforcement. While non-compliance can lead to significant financial and legal penalties, the specific penalties and timelines are still being determined by relevant agencies. Clearer guidance might also be necessary on the scheme’s relationship with EU regulations and cross-border trade.
What do manufacturers need to do, and when do they need to do it by?
If you are a manufacturer, your first step is to determine whether your business is obligated under EPR.
This involves checking your turnover and the total packaging placed on the UK market in the previous calendar year. If you meet the criteria, you should now begin collecting detailed packaging data.
If you are a manufacturer, you should revisit your supply chain, review supplier contracts and prepare for any future fee changes.
The benefits of staying updated and working with others
Remaining on top of key changes is important. The changing Extended Producer Responsibility rules show how important it is to partner with trusted waste management professionals. Working with a waste partner helps you stay up to date with requirements, manage your data submissions accurately and avoid potential fines and even reputational risks.
With the industry changing quickly and compliance obligations increasing, this is a good opportunity to reshape your packaging and waste strategy for the better.
A waste review allows you to outline your compliance strategy, identify opportunities to improve packaging design and – ultimately – reduce your costs.
Book a waste review with Waste Mission now.
