Upcoming changes in UK legislation will change the way that businesses dispose of packaging waste. These changes are predicted to cost UK companies over £1.1bn a year, but will your business be one of those that has to pay?
Extended Producer Responsibility
Extended Producer Responsibility (EPR) replaces the current regulations around packaging waste with a series of changes that make businesses more responsible for the waste they create. This means that not only will some companies need to log the amount of waste they produce, but also pay for it.
So, are companies effectively being fined for their waste production?
No. Instead, the idea behind the legislation is to shift the financial burden away from councils and onto the businesses that create the waste.
These costs, traditionally covered by local councils, include the collection, treatment and recycling of packaging waste.
Which businesses will have to pay?
While companies that are actually involved in the production or supply of packaging will obviously be affected by EPR, the changes will impact upon many others too.
In fact, the ruling applies to any business that supplies products that are packaged: think crisps in a packet, or TVs in cardboard boxes, for example.
This means that apart from professional services and SaaS firms, almost every business has the potential to be affected by the changes if they fit within certain financial and productivity parameters.
What are the parameters that determine if a company has to comply with EPR?
There are two different groups that will need to comply with EPR regulations, and how that compliance takes shape is dependent on which group your business falls within.
Large organisations must record data about their packaging uses and pay a fee toward waste management as well as registration charges. Smaller organisations, meanwhile, should have already reported their recorded data from 2024 earlier this year, but will not need to pay any fees.
A small organisation is classified as a business that either:
Has an annual turnover between £1m and 2m AND supplies or imports more than 25 tonnes of packaging within the UK
Or
Has an annual turnover of more than £1m AND supplies or imports between 25 and 50 tonnes of packaging within the UK
A large organisation is classified as a business that has an annual turnover of more than £2m AND supplies or imports more than 50 tonnes of packaging within the UK.
When do these changes take place?
For those classed as small organisations, the changes have already taken place. They should have submitted their first report in April 2025.
Large organisations, meanwhile, will see the fees come into force in October 2025. They too, should have registered already, though.
What if I haven’t registered yet or don’t intend to?
If your business is classified as one that needs to register as EPR compliant and it hasn’t done so yet, you’ll need to act quickly to remedy that.
Should your business fail to comply with the new laws, it could be subjected to significant legal and financial penalties.
Depending on the severity of the breach of rules, UK businesses could be dealt financial penalties starting from £1,000 but reaching to £3m in the most extreme scenario.
Worried that EPR costs could disrupt your business?
We’ve helped countless companies to find practical solutions to financial issues.
Give one of our specialist advisers a call on 0800 975 0380 or email advice@forbesburton.com to find out how we can tailor the perfect solution for your business from our range of options.
