What is EPR and why is it being introduced?
The UK’s Extended Producer Responsibility (EPR) tax is changing how businesses select and supply packaging. It adds a new tax on household packaging to help local councils cover recycling costs. This shifts financial responsibility from councils to companies that produce, import or sell packaged products.
If your business supplies packaged goods, this tax will likely increase costs and impact operations.
How Will the EPR Tax Impact Your Business?
The EPR tax will affect your business in a few key areas:
- Higher Costs: All disposable packaging for household products is taxed. Non-recyclable materials cost more. Even if you’re not a large producer, your packaging costs will rise as suppliers adjust prices.
- More Admin Work: Large producers must track and report household packaging usage, adding to the paperwork and costs, especially for small teams.
- Pressure to Improve Sustainability: Businesses using less sustainable packaging may lose customers, as customers will see higher prices for packaging that’s hard to recycle
Who Does the EPR Tax Affect?
The EPR tax charges businesses for the recycling and disposal of household packaging. The cost depends on the material – plastic, metal, glass or cardboard.
- Large Producers: (Businesses producing/importing 50+ tonnes of packaging and making £2 million+ revenue annually) must report packaging use and pay the tax directly.
- Smaller Businesses: Won’t have to register or pay the tax directly, but large producers will have to report the tonnage of packaging sold to smaller businesses, pay the tax on their behalf and will pass the cost down through higher prices or EPR surcharges on invoices.
What does this mean for you?
Pont Packaging is obligated to report on any packaging we supply, with certain exceptions:
- Supply to ‘Large organisations’
- Supply outside of the UK
- Supply for use in businesses (such as on-trade or hospitality) where waste is disposed of via business waste rather than household waste channels
Your packaging supply will be subject to these EPR fees at rates confirmed by DEFRA July 2025
The rates published by DEFRA for 2025 to 2026
EPR for packaging base fees for 2025 to 2026 for all packaging materials
| Material | Rate (in £ per tonne) |
|---|---|
| Aluminium | 266 |
| Fibre-based composite | 461 |
| Glass | 192 |
| Paper and card | 196 |
| Plastic | 423 |
| Steel | 259 |
| Wood | 280 |
| Other | 259 |
Sources & further reading
UK Government: Official guidance on EPR
Comprehensive guidance for businesses and others on Extended Producer Responsibility for packaging.
PackUK (Scheme Administrator): Fee rates and recyclability methodology
This includes the published 2025 base fees for household packaging delivered via EPR, as well as the Recyclability Assessment Methodology (RAM) for fee modulation:
Base fees
Recyclability / modulation methodology
This page is general guidance only. Always check official GOV.UK resources or speak to your compliance scheme for tailored advice.
