Extended Producer Responsibility (EPR) 2026 places greater financial responsibility on businesses using packaging that is hard to recycle. The general environmental principle makes producers responsible for a product's entire lifecycle. While it currently focuses on packaging in the UK, it will eventually expand to other sectors like textiles, tyres and bulky goods.

pEPR (Packaging Extended Producer Responsibility) is the industry-specific term for the current regulations targeting packaging waste that requires producers to cover the full cost of managing household packaging waste.

These EPR changes will replace the older Packaging Waste Regulations 2007 and aims to shift the cost of waste management from taxpayers to the producers themselves. The aim is to encourage better design, easier recycling and more responsible material choices. 

Eco-modulated fees are scheduled to begin in the 2026/27 financial year. This means that fees will follow a modulated red, amber, green (RAG) system based on the entire lifecycle of the packaging:

• Red: hard to recycle materials that may contaminate other waste streams, such as non-separable multi-material, multi-layer packaging or highly contaminated glass.
• Amber: materials that can be recycled face challenges, such as glass jars with non-removable materials.
• Green: materials considered as widely recyclable, such as paper and cardboard.

Materials labelled as green will incur lower fees and red will sustain a higher fee. The fees will be modulated based on your Recyclability Assessment Methodology (RAM). This assessment will scientifically categorise your packaging against the red, amber, green system, and from this your pEPR fees will be calculated based on real-world recycling performance. 

The EPR 2026 rules affect most of the packaging supply chain, including brand owners, importers, distributors, online marketplaces, sellers and service providers. Responsibility is now shared more broadly rather than sitting only with manufacturers.

Obligation depends on business size and packaging volume.

You are likely to be obligated if all of the following apply:

• You are a business, subsidiary or group operating in the UK
• Your annual UK turnover is £1 million or more
• You handle 25 tonnes or more of packaging each year 

Charities are generally exempt, but profit-making limited companies linked to charities are not automatically exempt.

Obligations differ depending on whether you are classed as a small or large producer. 

Small producers 

Small producers are typically those with turnover between £1 million and £2 million and more than 25 tonnes of packaging, or turnover above £1 million with 25 to 50 tonnes handled. 

Small producers face lighter financial obligations. They are not required to pay full waste disposal fees or buy Packaging Recovery Notes. 
However, they must still register with their environmental regulator and submit packaging data once a year, along with an annual registration fee.

Large producers

Large producers are those with turnover above £2 million that handle more than 50 tonnes of packaging per year.

They carry the highest reporting and cost burden. Their obligations include paying the full net cost of collecting and recycling household packaging waste, continuing to purchase Packaging Recovery Notes to meet recycling targets, paying a higher registration fee and submitting detailed packaging data every six months. 

Preparation for EPR reporting starts with confirming your obligation category based on turnover and packaging tonnage. The official EPR obligation checker can help you determine your status.

Next, set up your reporting account through the Report Packaging Data service. This is the central portal used to submit packaging data to the environmental regulator.

You should then carry out a packaging audit across your product range. Use the RAM framework to assess each packaging component and assign a red, amber or green rating.

Once your data is collected and assessed, you can submit your reports. For large producers, data covering July to December must be submitted by 1 April each year. Check each reporting window carefully to avoid penalties.

Finally, ensure that registration fees are paid to your regulator, such as the Environment Agency, and that any applicable waste management fees are paid to PackUK, the scheme administrator. 

EPR 2026 introduces new responsibilities, new reporting rules and new cost structures for packaging. Early preparation makes compliance far more manageable.

To understand your likely costs and the practical next steps, download our detailed guide and checklist for EPR compliance.