Extended ProducerResponsibility (EPR)

The current system of producer responsibility for packaging, the Packaging Recovery Note (PRN) system, has been in place in the UK since 1997 and has helped to increase recycling of packaging waste from 25% to 63.9% in 2017. However, as with any system that is over 20 years old, it needs reform.

The EPR proposals are designed to make producers responsible for the full net cost of managing packaging once it becomes waste, alongside setting more ambitious recycling targets for producers, and introducing clear and consistent labelling for recyclability. The costs of EPR are considerably more than the current system, with the current estimates suggesting that obligated producer costs will be around £1.7 billion each year.

It’s hoped that this cost transfer (from tax payer to producers) will incentivise more sustainable packaging choices.

There are still a number of decisions to be made about how the EPR scheme will operate which will be determined by the scheme administrator.

EPR will apply across the UK (England, Scotland, Wales and Northern Ireland). Government has proposed the introduction of a single point of obligation (i.e., a single producer is responsible for the cost of managing a piece of packaging). This will focus the obligations onto those who are best placed to reduce and/or increase the recyclability of the packaging they use, so is most likely to be the brands and retailers.

Ahead of the implentation of EPR, there will be an interim solution for managing packaging waste arising from businesses. This will be based around the current Packaging Recovery Note (PRN) system, whereby packaging producers purchase PRNs and PERNs to show they have met the recycling obligations for the packaging they have placed on the market, and to support investment in reprocessing.

The new EPR system will have the same de minimis (minimum level where this is applied) for producer recycling obligations and disposal cost payments as the current PRN system (turnover of £2m and handle 50 tonnes of packaging). But a new lower threshold is being introduced for reporting obligations of turnover of £1m and handle 25 tonnes of packaging. There is no lower limit to the obligation for mandatory labelling – it is suggested that all packaging must be labelled but for small businesses the requirement may be on the producer that sells them the unfilled packaging.

Under the new system, all obligated producers will pay a fee for the packaging they place on the UK market. These fees will be modulated; for example, those who use unrecyclable packaging will be required to pay higher fees than those using recyclable packaging, which should provide an incentive to achieve increased recycling.

It is planned that these fees will help to deliver funding to support additional collections and upgrading of infrastructure to allow recycling of currently unrecyclable materials, or to incentivise greater uptake of reuse and refill business models and systems.

Illustrative base fees are due to be published soon and will be updated once the first batch of packaging data has been submitted.

The good news is that Government has aligned with OPRL and has proposed a single label design based on the Recycle Now Swoosh (as the OPRL labels are currently).

Producers will be required to label packaging using the Recycle Now mark and relevant wording (Recycle/Do Not Recycle).

OPRL labels are EPR-compliant and we have been working to ensure that they are consistent with EPR regulations.

All packaging must be labelled, there will be no exemptions for small businesses.  However, for small and micro businesses using unfilled and unbranded packaging, the regulations are likely to require that the packaging manufacturer provides packaging recyclability information to the distributor selling unfilled packaging (or to the small and micro businesses when selling the packaging direct).

All new packaging types will be required to be labelled by 1 April 2027. Packaging already on the market will not need to be labelled retrospectively.

The Office for Product Safety and Standards (OPSS) will be the organisation responsible for the monitoring and enforcement body of the labelling requirements.

In July 2023, DEFRA announced a delay to the implementation to EPR. You will not have to pay any fees in 2024, however, you must still report your packaging data for 2023 and must continue to pay any fees due under previous regulations. The first EPR fees are now due in October 2025.