Date: 27th August

Issue

Will the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 finally make businesses pay the true cost of their packaging waste?  

Short answer

Yes, the 2024 Regulations made under the Environment Act 2021 require businesses that place packaging on the UK market to cover the full net cost of managing its waste once discarded. Laid before Parliament on 24 October 2024 and coming into force on 1 January 2025, the Regulations introduced data reporting obligations. The scheme governed by the regulations is expected to have full effect in 2026, targeting large producers (businesses responsible for putting packaging on the UK market) provided that each obligation is met and there are fewer delays.   

What is EPR and what does the 2024 regulations do?  

Extended Producer Responsibility (EPR) places full responsibility for packaging waste management costs on the producer. The UK’s updated EPR scheme known as pEPR (Packaging Extended Producer Responsibility), operates under the legal framework of the 2024 Regulations. According to the scheme, producers will now cover the full net cost of household packaging waste management, removing this financial burden from taxpayers. Currently, Defra (the Department for Environment, Food & Rural Affairs) is the UK government department responsible for developing and implementing the policies regarding the pEPR scheme, with PackUK currently acting as the interim Scheme Administrator.  

Under pEPR rules, businesses producing over 50 tonnes of packaging and a turnover of £2 million or more are classified as large producers. These businesses face new financial and biannual data reporting obligations. They are to cover the costs local authorities face in dealing with household packaging waste (collecting, sorting, recycling) once it is discarded, which could include communication and awareness activities on how to correctly dispose of packaging. Businesses producing 25-50 tonnes of packaging with a turnover of £1-2 million are classified as small producers and fall under data reporting obligations only. Obligated businesses must also register annually with the relevant environment regulator, as failing to do so can lead to fines or prosecution under the pEPR regulations. This embodies the polluter pays principle, ensuring that the costs of environmental harm fall on those who cause it rather than the public.  

The scheme is projected to generate around £1.1 billion for councils in England to improve recycling services, according to government estimates. Taken together with other reforms (the Deposit Return Scheme and Simpler Recycling) these packaging measures are expected to support around 25,000 jobs and stimulate ‘£10 billion of investment in sorting and processing facilities over the next decade’. The combined reforms also contribute towards delivering carbon savings which supports the UK’s net zero goal of reducing greenhouse gas emissions by 2050.  

Additionally, there is now a stronger incentive to use more recyclable packaging materials as producers using hard to recycle packaging will face higher fees, while those using sustainable packaging will pay less. This advantageously supports the UK’s circular economy strategy which focuses on reducing waste and keeping materials in use for longer, ensuring that resources are reused and recycled, rather than discarded.  The sustainable shift also has a wider impact as the EU is moving towards harmonised EPR rules across member states. This means UK businesses that adapt early to packaging EPR will gain a competitive edge, as many of the same principles are expected to be reflected in the EU system.   

Potential Problems  

The scheme has been criticised on two fronts. 

  • First, small producers are exempt from covering the full cost of their packaging waste. This leaves local authorities and taxpayers shouldering the costs of waste from numerous smaller businesses.
  • Second, the delay of waste management fees until October 2025 has frustrated recycling bodies, who argue that it grants larger producers another postponement while undermining the government’s pledge to deliver full net costs, a commitment first made five years ago in its 2018 Resources and Waste Strategy. 

Nevertheless, the current plans lay the groundwork for stronger rules in the future and help prepare large businesses for full implementation.  

Conclusion  

Despite there being much to do in achieving a circular economy, placing importance on the pEPR scheme marks a foundation for further progress. By shifting the financial responsibility for packaging onto the individual companies that create it, the system reinforces collective responsibility among producers. Together with the 2024 Regulations, this necessary pressure ensures fairness and environmental accountability are firmly embedded in corporate practice.