The UK’s packaging landscape is set for a major shift in 2026, as businesses that produce, import, or supply packaging will become financially responsible for the end-of-life recycling of their products.
Known as Extended Producer Responsibility (EPR), this policy aims to reduce waste, improve recycling rates, and place the cost of recycling squarely on the organisations that create packaging.
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For packaging producers, importers, and brand owners, understanding the new fees, reporting obligations, and compliance requirements is essential to avoid penalties and streamline operations.
Understanding extended producer responsibility for packaging
EPR for packaging is designed to ensure that those who create packaging also manage its environmental impact. The scheme applies to UK organisations with an annual turnover of £1 million or more that handle over 25 tonnes of packaging per year.
Businesses must collect and report data on the types and quantities of packaging they place on the UK market. The data will form the basis of a fee structure intended to fund recycling and waste management services, previously covered by local authorities.
The scope of the legislation covers all packaging types, including primary, secondary, tertiary, and shipment packaging.
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By GlobalDataCompanies that supply goods under their own brand, import packaged products, or operate online marketplaces that enable international sales into the UK are considered obligated.
Even reusable or hireable packaging falls within the scheme, meaning businesses must carefully assess their packaging portfolio to determine obligations.
Calculating and reporting new UK packaging fees
Fees under the EPR scheme are calculated based on the volume and material of packaging introduced into the market. Heavier or less recyclable materials attract higher fees, encouraging businesses to adopt lightweight, recyclable, or compostable alternatives.
Small producers, defined by turnover and packaging volume thresholds, may face reduced obligations, but must still report packaging data to remain compliant.
To comply, businesses must register with a recognised compliance scheme or report directly to the regulator.
Accurate record-keeping is critical, as the UK Environment Agency and devolved regulators will audit reported data. Reporting periods align with the calendar year, and late or inaccurate submissions can result in financial penalties and reputational damage.
Companies are encouraged to review their packaging designs, supply chains, and data collection processes well ahead of the 2026 deadline.
Preparing for long-term compliance and strategic opportunities
While the new fees represent an additional cost for UK packaging producers, EPR also creates strategic opportunities. Businesses that redesign packaging to reduce material usage, switch to recyclable components, or introduce reusable packaging solutions can lower fees while enhancing brand sustainability credentials.
Early adaptation can also improve supply chain resilience, reduce waste management risks, and support corporate environmental, social, and governance (ESG) objectives.
Industry experts recommend establishing dedicated internal teams to oversee EPR compliance, integrating reporting tools with existing enterprise resource planning (ERP) systems, and engaging with compliance schemes early.
Collaboration across suppliers, brand owners, and logistics partners will ensure accurate data capture and efficient fee management, mitigating the risk of penalties while promoting a circular economy.
The 2026 EPR rollout marks a transformative moment for UK packaging producers.
By understanding obligations, reporting requirements, and fee structures, businesses can navigate the transition smoothly, control costs, and leverage sustainability initiatives as a competitive advantage in an increasingly environmentally conscious market.
