EPR fees: what does it mean for packaging businesses?
It’s here – almost.
Extended Producer Responsibility was first proposed by the UK government under Theresa May’s premiership, four prime ministers and six years ago, in 2018. Earlier this month, the government revealed one of its most significant updates yet on the future of the scheme when it announced its illustrative base fees.
For the first time, companies are able to start planning for the future under EPR – and we’ve broken down all you need to know here.
What is EPR?
For some, this will be familiar ground. But packaging regulations are an infamously obscure topic – as evidenced by reports of producers being hit with hefty fines after inadvertently failing to register under the existing regulations in 2004 – so it’s worth including a brief refresher of EPR here.
In short, EPR is the name given to a broad waste management policy approach that makes packaging producers liable for the costs of packaging waste management, rather than local authorities (and, by extension, taxpayers). By making producers liable for these costs, the ultimate aim is to encourage them to start making packaging that is easier to recycle, compost, or reuse. The easier it is for packaging to recycle, the lower the costs will be, and the smaller the EPR fees will be.
It’s worth noting that many countries (and US states) have their own versions of EPR regulations that may differ in the detail from the UK’s policy, but the broad approach and aims are the same.
What are the illustrative base fees?
To calculate how much they owe under EPR, businesses will have to collect data on any packaging they produce. A producer is defined in the regulations as;
“A brand owner, a packer/filler, an importer or first UK owner, a distributor, an online marketplace operator or a service provider”
The data collection element of EPR has actually been in force since last year, with a final reporting deadline of April 2025, while the first EPR fees are due on 1 October 2025.
This data will break down the materials used to make the packaging by type, weight, and other important factors. Fees will be applied on a per tonne basis and will be calculated based on how expensive each material is to dispose of or recycle. They also take into account the resale value of any materials that are recycled. This means materials like glass, which are widely recycled and have thriving end markets for recycled material, have lower base fees.
It’s important to note that the fees the government has released are described as “illustrative” for a reason. They are not final and are almost certain to change in future. However, they do provide a very rough guide to what businesses can expect. Refined figures are expected in September.
Modulated fees for EPR
In addition to fees based on different material types, EPR will introduce modulated fees from 2026. This introduces a higher and lower bracket for each material, which takes into account materials like compostable bioplastic and flexible plastic polymers. While both these materials fall under the ‘plastic’ category, a home compostable bioplastic pouch is much easier to dispose of than a multimaterial plastic film, so the modulated fees will reflect this.
What next for packaging businesses?
In-scope packaging producers should have already begun their data collection and reporting process, so all that remains is to prepare for the introduction of the fees.
This is easier said than done, of course, particularly in the current climate of increasing costs and stretching supply chains. But there is a silver lining – businesses can use this opportunity to review their packaging processes and supply chains, which may uncover new efficiencies and opportunities.
It should also help the industry take a more holistic view of the packaging it places onto the market, focusing minds on creating solutions that are compatible with the UK’s existing recycling infrastructure, but also looking at innovations that can design out waste altogether.
Looking at ‘right size’ packaging strategies can reduce the overall weight of packaging – and therefore any associated EPR fees – but it can also create new savings when it comes to logistics and warehousing. By the same token, lightweighting packaging can reduce the total amount of material on the market without compromising on performance.
This should facilitate closer relationships and a deeper understanding between packaging manufacturers and brands as they work together to find optimal strategies. Adopters of paper-based packaging materials will be the big winners of EPR, as paper and paperboard are the most widely recycled materials in the UK – but there will be opportunities for every business to innovate and grow.
As ever, communication will be key to maximising that growth. After all, study after study shows that consumers prefer packaging that they perceive to be sustainable and easy to recycle, and they’re voting with their wallets. If you’re a packaging manufacturer with an innovation that ticks those boxes while supporting EPR compliance, brands will want to hear about it.
That’s where PHD Marketing comes in. We’re packaging industry specialists with the expertise to truly understand your business, your markets, and the challenges you face. That means we can help you turn those challenges into opportunities to make your brand’s voice heard.
Drop us a message today to discuss how we can put your brand in front of the people that matter.
