Packaging costs are coming under greater scrutiny as changes to the UK's Extended Producer Responsibility (EPR) scheme take effect.
For businesses covered by the regulations, the recyclability of packaging now influences how much they pay in waste disposal fees. Materials that are harder to recycle attract higher charges, creating a financial incentive to rethink packaging design and material choices.
But what does this mean for businesses in practice, and could changing your packaging reduce costs?
What is packaging EPR, and who does it affect?
Extended Producer Responsibility for packaging, often called pEPR, is designed to make businesses that supply packaging or packaged products take greater financial responsibility for the waste they generate.
The scheme requires qualifying producers to report packaging data, with larger producers also responsible for paying waste disposal fees on relevant packaging.
Not every business is affected in the same way.
Under the current rules:
Small producers generally have annual turnover exceeding £1 million and supply or import more than 25 tonnes of packaging. They have registration and reporting responsibilities.
Large producers have annual turnover exceeding £2 million and supply or import more than 50 tonnes of packaging. They have additional obligations, including applicable waste disposal fees.
These thresholds are subject to detailed rules about packaging activities and responsibility. The waste disposal fees primarily concern household packaging and certain packaging disposed of in public bins, rather than every type of commercial packaging.
Businesses should check their circumstances against the latest government guidance on packaging EPR.
How are EPR packaging fees changing in 2026/27?
From the 2026/27 assessment year, packaging waste disposal fees are adjusted according to recyclability.
PackUK uses the Recyclability Assessment Methodology (RAM) to classify packaging into three categories:
Green: More readily recyclable packaging, attracting a discounted fee.
Amber: Packaging charged at the standard rate for its material category.
Red: Less recyclable packaging, attracting a higher fee.
The difference can be considerable.
PackUK's illustrative fees for 2026/27 show how much businesses could pay per tonne of relevant packaging.
Source: PackUK, illustrative waste disposal fees published December 2025. These are estimates, not confirmed final charges.
For example, using these figures, a business liable for fees on 10 tonnes of red-rated plastic packaging would pay £5,450, compared with £4,150 for the same weight of green-rated plastic.
That's a difference of £1,300, purely from the recyclability classification.
The difference will become more pronounced in future years, with the surcharge applied to red-rated packaging scheduled to increase.
You can find the full figures in PackUK's illustrative waste disposal fees.
What should businesses be looking at?
EPR gives businesses another reason to review packaging specifications, particularly where materials are being purchased in large quantities.
There are three areas worth considering.
1. Can your packaging design be simplified?
A product might be packed using a cardboard box, foam inserts and plastic wrapping. Each material may serve a purpose, but could the same protection be achieved with fewer components?
For example, purpose-designed corrugated cardboard fittings may offer an alternative to foam inserts for certain products.
Reducing mixed materials could also make packaging easier for customers to separate and recycle, although the actual RAM classification depends on the materials and their construction.
For businesses developing new packaging, recyclability is worth discussing during the design stage rather than trying to address it after production.
2. Are you using unnecessary packaging?
A manufacturer regularly dispatching products in oversized boxes may be paying for more cardboard and protective material than needed.
Better-fitting packaging could reduce material use, improve packing efficiency and potentially lower storage or transport costs.
Even small changes become significant at volume.
We've explored this further in our guide to whether bespoke packaging can reduce overall packaging costs.
3. Would an alternative material work better?
Paper-based packaging is attracting attention, partly because of its recyclability and the differences in EPR disposal fees.
But comparing a plastic product with a cardboard alternative isn't as straightforward as comparing the fees per tonne.
A lightweight plastic mailing bag might use considerably less material than its paper equivalent. The paper version may be easier to recycle, but could behave differently when exposed to moisture or rough handling.
The total material weight, purchase price, protection and recyclability all influence the decision.
For manufacturers, the question might involve replacing plastic protective fittings with corrugated alternatives or finding a way to reduce packaging weight without compromising strength.
Testing alternatives against the actual product and delivery conditions is essential before making changes across an entire packaging operation.
What if your business doesn't pay EPR fees?
Smaller businesses may not be directly liable for packaging waste disposal fees, but they can still be affected by changes in packaging prices, supplier specifications and customer expectations.
It's worth understanding what materials you're buying, how recyclable they are and whether your current packaging is still suitable for the job.
For businesses looking at the broader financial implications, our article on the true cost of sustainable packaging provides further reading.
Reviewing your packaging? Speak to TEC
For businesses considering changes to their packaging, understanding the regulations is only part of the picture. Any alternative also needs to work in practice, protecting products without creating unnecessary cost or disruption.
At TEC Packaging, we help businesses across Plymouth, Devon, Cornwall and the wider South West review their packaging materials, design and packing processes.
Our free packaging audit can help identify opportunities to reduce costs, improve efficiency and explore more sustainable options.
We don't provide EPR regulatory compliance assessments, but we can help you find practical packaging solutions that suit your business.
Get in touch with the TEC team or call 01752 696330 to discuss your requirements.
Information correct as of 6 November 2026. Packaging EPR rules and fees are subject to change. Businesses should consult official guidance when determining their legal obligations.