The UK’s extended producer responsibility for packaging (pEPR) regime has now moved firmly from implementation into live operation, with several important developments over the past year that packaging producers should have firmly on their radar.
pEPR represents a fundamental shift in the regulation of packaging waste. Grounded in the “polluter pays” principle embedded in the Environment Act 2021, the regime transfers responsibility for the full net costs of managing household packaging waste from taxpayers and local authorities and onto producers. It is designed to incentivise producers to reduce packaging use, improved recyclability, meet recycling targets and use clear labelling.
Core framework:
The core pEPR framework is set out in the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024, which largely came into force on 1 January 2025. While large producers have been subject to registration and data‑reporting obligations, the most significant financial impact began on 1 October 2025, when they became liable to pay household packaging waste disposal fees.
pEPR distinguishes between small producers and large producers, based on turnover and the amount of packaging placed on the UK market. The pEPR regime does not apply to charities or micro businesses.
A large producer is one to whom has an annual turnover of above £2 million and supplies more than 50 tonnes of packaging in the UK in any relevant year. A large producer must:
- register with the regulator;
- collect, retain and report packaging data to the regulator every six months;
- assess the recyclability of household packaging it supplies;
- meet material‑specific recycling obligations of each of the categories of packaging it supplies (using PRNs or PERNs); and
- pay disposal fees for any household packaging it supplies to cover local authority waste management costs and administration fees to the scheme administrator.
A large producer is exempt from complying with its obligations under the pEPR Regulations 2024 where it is a member of a compliance scheme which complies on its behalf.
A small producer is one to which either of the following apply in any relevant year:
- its annual turnover is between £1 million and £2 million, and it supplied or imported more than 25 tonnes of packaging in the UK.
- its annual turnover is over £1 million, and it supplied or imported between 25 and 50 tonnes of packaging in the UK.
Small producers have lighter obligations. A small producer is required to be registered with the regulator and is obliged to collect, retain and report on its packaging data annually (i.e., maintaining records of packaging type, material and weight). Although, small producers are exempt from having to pay disposal fees or meet recycling obligations.
Operational refinements and amendments
In November 2025, the government laid the Producer Responsibility Obligations (Packaging and Packaging Waste) (Amendment) Regulations 2025, which came into force on 1 January 2026. These amendments were introduced to improve the practical operation of pEPR and to address issues identified during early implementation.
Key changes include:
- Enabling the appointment of a Producer Responsibility Organisation (PRO) to support the scheme administrator, PackUK, and ensure closer producer involvement.
- Enabling producers to make deductions for closed‑loop recycling of food‑grade plastics, where producers directly collect packaging from consumers and reprocess it back into food‑grade material.
- Clarifying aspects of producer obligations, closing potential loopholes and refining how local authority costs are modelled.
- Removing barriers to compliance and enforcement, including updates to regulators’ charging powers.
On 23 March 2026, PackUK announced that it had appointed UK Packaging PRO as the industry‑led Producer Responsibility Organisation for pEPR, with effect from 1 April 2026.
UK Packaging PRO brings together more than 100 major brands, retailers and trade bodies, supported by the Food and Drink Federation and INCPEN. Its purpose is to provide structured producer input into the delivery and governance of pEPR, working alongside PackUK. While the PRO will support scheme administration, it is important to note that legal responsibility for compliance remains with individual producers.
Enforcement risk
The pEPR regime is backed by a strengthened enforcement framework. The Environment Agency and Natural Resources Wales have wide information‑gathering and investigatory powers, and can impose civil sanctions, including significant variable monetary penalties for non‑payment of fees. Serious or persistent non‑compliance may result in criminal prosecution and unlimited fines, with potential personal liability for directors in certain circumstances.
What should producers be doing now?
With disposal fees and governance structures now in place, producers should ensure that:
- pEPR registrations and data reporting are accurate and up to date;
- packaging has been correctly classified as household or non‑household;
- recyclability assessments are supported by robust evidence;
- supply chains and group structures have been properly assessed; and
- packaging design and material choices are reviewed ahead of fee modulation from 2026‑27.
Alongside Extended Producer Responsibility, measures like the Plastic Packaging Tax and the Packaging (Essential Requirements) Regulations work together to reduce waste, increase recyclability, and encourage producers to take ownership of their environmental impact. These overlapping policies mean that businesses need to look at packaging more holistically, considering not only cost and compliance but also sustainability and future resilience.
The direction is clear: producers are now expected to play a leading role in building a circular economy for packaging. Those that adapt early by investing in sustainable designs and materials and accurate reporting systems, will stay compliant and place themselves ahead of the curve as the UK continues to tighten its approach to packaging waste.
It is important to also recognise that pEPR obligations are likely to be flowed down supply chains as producers will increasingly look to their suppliers to support their compliance. This may involve suppliers being asked to provide detailed and reliable information on packaging composition, weight, material type and recyclability, as well as assurances around data accuracy for reporting purposes. and to ensure accurate reporting. As a result, SME’s should take proactive steps to prepare. This includes understanding where pEPR responsibility sits within their supply chain, mapping and maintaining accurate packaging data, assessing packaging specifications, reviewing relevant contractual arrangements, and engagin early with producer customers with compliance requirements in mind.
We can assist businesses by advising on the operation of the pEPR regime, including how responsibility is allocated across complex supply chains, and by reviewing and negotiating relevant contractual provisions. Our aim is to help clients minimise commercial risk while strengthening existing customer relationships.
If you have any questions as a result of this article, please contact commercialtechnologygroup@fsp-law.com.
