A guide to Extended Producer Responsibility (EPR)

If your business handles, imports, or generates packaging, you may be impacted by the new Extended Producer Responsibility (EPR) legislation.

But what is the Extended Producer Responsibility (EPR) legislation?

Extended Producer Responsibility (EPR) is an updated regulatory framework that has been introduced to ensure that producers cover the full costs associated with the recycling and disposal of household packaging waste.

This guide will outline what the Extended Producer Responsibility legislation is, why it has been introduced, and what your business must do to comply.

1. Why was EPR introduced?
2. What are the key changes?
3. Key dates and reproting requirements
4. Who does EPR apply to?
5. Business size obligations
6. Fees and costs
7. Ensuring compliance
8. Need further guidance?

The UK’s previous Packaging Waste Regulations, introduced in 1997, successfully increased recycling rates, with packaging recycling reach approximately 70%. Paper and corrugated cardboard recycling rates achieved even higher success at around 84%.

Despite these improvements, concerns about packaging waste has grown, especially with regard to plastic pollution. The existing Packaging Recover Notes (PRN) system covered only around 7% of the costs associated with packaging waste management. Extended Producer Responsibility is designed to bridge this gap ensuring producers bear the full financial resposnility for their packaging waste.

The Extended Producer Responsibility (EPR) framework shifts the financial responsibility for packaging waste management to individual businesses. Under this system:

• UK brand owners or importers are responsible for 100% of the costs linked to household packaging waste.
• Businesses must also fund public recycling awareness campaigns and cover costs for waste management in public spaces.

Modulated fees

From 2025, modulated fees will be introduced to encourage businesses to use materials that are easier to recycle. Higher charges will apply to packaging that is difficult to recycle, while lower fees will incentivise the use of sustaiable packaging.

Data collection and reporting

From January 2023: All affected businesses must start recording data about their packaging usage.

From July 2023 (or January 2024 for some businesses): Elifible organisations must register with Defra and submit their data.

From April 2026: packaging must display a “recycle” or “do not recycle” logo (with some exceptions for flexible films).

Nation data reporting

Both large and small businesses may need to submit ‘nation data’ to indicate where in the UK their packaging was sol, loaned, or discarded.

To determine if your business is affected, consider whether you:

• Supply goods in branded packaging.
• Pack goods into unbranded packaging.
• Import packaged products into the UK.
• Own an online marketplace that facilitates UK sales.
• Hire or loan reusable packaging (e.g., pallets, containers).
• Supply empty packaging to other businesses.

Small Businesses

If your turnover is between £1m and £2m and you handle over 25 tonnes of packaging, you will need to:

• Record and report your packaging data.
• Register with Defra from January 2024.
• Pay an annual environmental regulator fee.

Large Businesses

If your turnover exceeds £2m and you handle more than 50 tonnes of packaging, you must:

• Record data every six months.
• Register your business by July 2023.
• Pay EPR fees and purchase PRNs or PERNs to meet recycling targets.

While exact fees are yet to be confirmed, estimates suggest the total cost for businesses may reach approximately £1.7 billion annually. Modulated fees, arriving in 2025, will vary based on the recyclability of the materials used.

The existing PRN and PERN systems will remain in place alongside EPR obligations.

To ensure your business complies with EPR regulations, consider the following steps:

• Collect accurate data on your packaging usage.
• Register your business with Defra when required.
• Budget for fees associated with waste management and recycling obligations.
• Consider joining a compliance scheme to simplify data submission, PRN purchases, and overall management of EPR obligations.

If you need additional advice or packaging data to meet your obligations, Suttons Performance Packaging can provide tailored support. Contact us today for further assistance in meeting the new Extended Producer Responsibility (EPR) regulations and ensuring your business remains compliant.