EPR and Recycling Targets

Producers now fund packaging waste in the UK

Extended producer responsibility moves the cost of dealing with packaging waste from councils to the businesses that supply the packaging. Defra and Environment Agency guidance, last updated in June 2026, says a UK organisation is obligated if it has an annual turnover of £1 million or more, supplies or imports more than 25 tonnes of packaging a year and carries out packaging activities such as importing or brand ownership. Producers record and report data on the packaging they supply, fees are charged against that data, and the guidance states that the fee will be lower for packaging that is easier to recycle, with recyclability-based adjustment from 2026. That pressure will gradually change what reaches the sorting line.

A tax on packaging without recycled plastic

Recycled-content rules create demand for clean secondary material, which is what a good sorting line sells. HMRC guidance on Plastic Packaging Tax explains that the tax has applied since 1 April 2022 to plastic packaging components containing less than 30 per cent recycled plastic, and that businesses must register if they have manufactured or imported 10 tonnes or more of finished components in the last 12 months or expect to in the next 30 days. The guidance adds that recycled plastic should only be used where other rules, including food safety standards, permit it. That matters for sorters, because food-grade outlets need tighter purity and traceability, so ask reprocessors what evidence they want from you.

EU targets and modulated producer fees

In the European Union, Directive (EU) 2018/851, which amended the Waste Framework Directive, set targets for preparing for re-use and recycling of municipal waste of 55 per cent by 2025, 60 per cent by 2030 and 65 per cent by 2035. It also added general minimum requirements for extended producer responsibility schemes, including clearly defined roles for everyone involved and reporting of data on products placed on the market and waste collected. Its Article 8a(4)(b) asks for producers' financial contributions to be modulated to reflect durability, reparability, re-usability, recyclability and hazardous substances. For plant owners, rising targets mean more material to sort, while modulated fees favour packaging formats that sort cleanly.

Turning policy into a sorting business case

Policy signals justify equipment only when they turn into contracts. Map which of your input streams fall under producer responsibility, which outputs face recycled-content demand and how prices for those grades have moved. Talk to scheme administrators, compliance schemes, councils and reprocessors about the qualities they expect to pay for over the life of the equipment, and ask for any commitments in writing. Then model the investment with and without those gains, using your own throughput and price data rather than headline targets. Treat targets as a reason to ask questions, not as revenue. Revisit the model whenever fee rules, recyclability assessments or targets are updated, and record the assumptions behind each version.

Sources and further reading

• Extended producer responsibility for packaging: who is affected and what to do — Department for Environment, Food & Rural Affairs and Environment Agency.
  UK guidance on which packaging producers are obligated, what data they report and how recyclability affects fees.
• Check if you need to register for Plastic Packaging Tax — HM Revenue & Customs.
  HMRC guidance on the UK tax for plastic packaging with under 30% recycled content and who must register for it.
• Directive (EU) 2018/851 amending Directive 2008/98/EC on waste — European Union (EUR-Lex).
  The 2018 amendments that set EU municipal recycling targets to 2035 and minimum rules for producer responsibility schemes.

Common questions

What is extended producer responsibility in simple terms?

It means the company that puts a product or its packaging on the market pays for, and sometimes organises, what happens to it as waste. Fees are usually based on the amount and type of material supplied, and they can be lower for designs that are easier to recycle.

Does EPR apply to products other than packaging?

Yes. Producer responsibility regimes often cover electrical equipment and batteries as well as packaging, each with its own collection and treatment rules. Check which regimes apply to the streams you receive, because their reporting requirements can affect how you weigh and record sorted material.