The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024 took effect on January 1, 2025, introducing a new framework for Extended Producer Responsibility for Packaging Waste (pEPR). This updated system places both reporting and financial obligations on businesses responsible for generating packaging waste, with the primary goal of funding waste collection and recycling efforts.
While pEPR introduces significant changes, it also retains some existing producer responsibility requirements, such as recycling obligations. Under this regime, businesses within its scope must report data on the packaging they produce to the government. Larger businesses will also be required to pay fees that contribute to the costs incurred by local authorities in managing packaging waste.
To encourage more sustainable practices, the pEPR system provides financial incentives for businesses that prioritise recycling and adopt eco-friendly packaging. Companies that take proactive steps to reduce their environmental impact may benefit from reductions in their waste management fees, aligning financial savings with sustainability goals. In order to administer the pEPR regime, the government has also launched a new DEFRA-hosted body – PackUK. PackUK will set fee levels under pEPR, collect fees and distribute payments to local authorities.
All businesses covered by the pEPR regulations must report the amount of packaging they supply and for which they hold responsibility. Determining which business is responsible for specific packaging involves a complex hierarchy. However, a company may be classified as the responsible “producer” if it engages in certain activities, such as:
- Having its branding displayed on the packaging
- Acting as a distributor, packer, or filler of empty unbranded packaging
- Importing packaged goods
- Operating as an online marketplace in certain circumstances
Obligations for data reporting have been in effect since 2023, requiring businesses to track and submit information on their packaging output.
To manage these reporting requirements efficiently, most affected businesses will register with a compliance scheme. These registered third-party organisations assist companies in fulfilling their data reporting duties and meeting recycling obligations. A list of approved compliance schemes can be found in the National Packaging Waste Database, providing businesses with access to recognised support services.
In addition to existing producer responsibility obligations (such as meeting recycling quotas through the acquisition of Packaging Recovery Notes or Packaging Export Recovery Notes), the regime imposes a new obligation to contribute to local authority costs of collecting and recycling household packaging waste, through payment of a waste management fee.
The waste management fee is determined by calculating the total amount of packaging for which the producer is deemed responsible and which is likely to become household packaging waste. From the second year of the scheme, in-scope businesses will be able to reduce the fee they must pay by using more sustainable packaging.
Businesses can also reduce the waste management fee by demonstrating that they have a closed-loop recycling system in place in respect of some of the packaging for which they are responsible, where that category of packaging is not commonly collected for recycling by local authorities. The first waste management fee charges will be levied in 2025 (in respect of 2024 packaging data).