How EPR Will Change the Way UK Businesses Use Packaging
Extended Producer Responsibility (EPR) is a new legislation that transfers the financial obligations of handling packaging waste from local councils to the companies that use that packaging.
This regulation is anticipated to have a considerable effect on UK businesses in scope of its provisions, leading to increased expenses and changing their approaches to managing packaging waste.
In this blog post, we will look at how businesses can adapt their packaging choices, waste management and reporting practices to adhere to EPR and reduce its financial impact.
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The effects of EPR on UK businesses
The total cost of EPR is estimated at around £1.5 billion, increasing the UK businesses’ packaging costs by around 10-30%. The exact amount each company will have to pay will depend on the volume of the packaging they manage and the type of packaging material they use.
Charges can vary significantly, ranging from about £10,000 to several million pounds annually. Generally, the more straightforward the packaging material is to recycle, the lower the associated costs.
The table below shows illustrative fees published by the UK Government in December 2024, based on the type of packaging material used per tonne.
| Material | Rate (in £ per tonne) |
| Aluminium | 435 |
| Fibre-based composite | 455 |
| Glass | 240 |
| Paper or board | 215 |
| Plastic | 485 |
| Steel | 305 |
| Wood | 320 |
| Other | 280 |
Source: Extended producer responsibility for packaging: illustrative base fees (December 2024), Department for Environment, Food & Rural Affairs: Extended producer responsibility for packaging: illustrative base fees (December 2024) – GOV.UK. All fees correct as of December 2024.
Companies that do not adhere to these regulations may encounter penalties and legal repercussions, which could be financially burdensome and may adversely affect their brand image.
Is my business subject to EPR?
If you are an individual business, subsidiary or group engaged in any of the packaging activities defined by the UK Government and have an annual turnover of £1 million or more while handling over 25 tonnes of packaging in a calendar year, you may be subject to Extended Producer Responsibility (EPR).
Your obligations and whether you need to pay any fees will depend on your classification as a small or large business.
All businesses, regardless of size, must report their packaging data; however, only large businesses are required to pay fees on all packaging for which they are responsible, including additional fees for household packaging.
Detailed information on packaging activities, packaging type and various reporting obligations are available at the UK Government website Packaging data: what to collect for extended producer responsibility – GOV.UK.
You will also find a lot of useful information by visiting our EPR page.
What adjustments can I make to my packaging to lower EPR fees?
The type of packaging material you use, its weight and recyclability will all impact the amount of your EPR fees.
Optimising your existing packaging or swapping to new, improved solutions will help mitigate this expense while increasing productivity, reducing product damage and lowering shipping costs.
When reviewing your packaging, consider the following tips:
- Think smaller – Using the same size of packaging for all your products isn’t a great idea. If your packaging is too big for its content, you will have to fill the gaps with additional void fill and risk your items getting damaged in transit as they rattle around oversized packs.
Optimised, compact packages will help ensure you only use as much packaging material as you need to protect your products, reducing packaging waste while lowering your packaging costs and EPR fees.
- Think smarter – As EPR is calculated based on the material weight, lighter packs will help you keep the costs down. Consider changing to a different type of corrugate fluting in a cardboard box or using a lighter gauge for stretch wrap.
Any such changes need to be executed with caution to avoid compromising product protection. However, if you get the balance right, you will end up with optimised, lighter packages that not only help you keep your packaging costs down but also ensure maximised protection for your products.
- Think greener – Anticipated EPR fees are calculated based on the tonnage of packaging material used, with some materials attracting lower charges than others. Typically, the easier to recycle the packaging material, the lower the fees. Additional modulation is also expected to be introduced after 2026, which will see materials categorised into further categories – such as hard plastics vs. soft.
Therefore, it might be worth reviewing your existing materials and the amount you use and considering a swap to those that attract lower EPR fees. It’s important to remember that material swaps should be right for your business and still provide protection for your products.
- Consider packaging automation – Automating your packaging processes offers consistency in your packing and ensures you only use as much packaging material as necessary each time.
While you might think packaging automation only includes large machinery, there are lots of options available, including small entry level options. For example, even a simple change, like introducing an automatic tape dispenser, will make a great impact on optimising your packaging workflow while reducing packaging waste, and therefore EPR liability.
Tools to help manage your packaging data and waste management
At Macfarlane Packaging, we have a wide range of tools and resources to help you prepare for EPR.
Customers can sign up to our e-trading platform, which offers a 24/7 access portal where they can see their packaging usage and download waste reports.
In addition, our innovative tool, the Packaging Optimiser, can help you calculate your predicted EPR fees, based on the packaging material and tonnage you use. It can also offer calculations on alternative materials, allowing you to compare and consider changes in the packaging you use.
All this, combined with our Innovation Labs, makes us well-placed to help you develop lighter, highly optimised packaging solutions that will help you lower your EPR fees while ensuring optimal product protection and increasing efficiency in your packing.
Contact us today for a free, non-obligation, packaging review and see how we can help.