EPR Compliance Challenges in 2026

Don’t take your eye off the ball with UK EPR

Are you ready for what’s in store relating to EPR in 2026?

Perhaps you thought that the switch from the 2007 packaging regulations to Extended Producer Responsibility for Packaging was all done and dusted in 2025 – you enrolled, submitted data and paid your Notice of Liability.

Think again!

As Extended Producer Responsibility (EPR) regulations evolve and compliance requirements intensify, 2026 marks a pivotal moment for UK businesses. With changes across packaging, electronics and batteries – as well as an expected announcement of a route towards EPR for textiles - the regulatory landscape is shifting in ways that will challenge how businesses operate.

The £1.2 billion annual bill in UK recycling

The first packaging EPR invoices landed in October 2025, marking a significant shift in how the UK funds its packaging recycling infrastructure. With the scheme expected to generate around £1.2 billion annually for local councils to manage household packaging waste, producers now have a clear financial case for reviewing their packaging decisions – and a legitimate interest in how collections of packaging from households perform.

Here's what makes 2026 particularly significant: the introduction of eco-modulated fees creates a direct link between packaging design and costs.

This represents a fundamental restructuring of how packaging costs are calculated, rewarding sustainable design choices whilst penalising problematic ones. For businesses prepared to adapt, this creates clear competitive advantages.

Eco-modulation: creating clear incentives for sustainable design

From 2026 onwards, your packaging EPR fees will be determined by the Recyclability Assessment Methodology (RAM)[1] classification of your packaging, creating transparent incentives for better design.

The new system works like this:

Green-rated packaging (widely recyclable) will benefit from reduced fees, funded by the additional charges levied on problematic packaging.

Red-rated packaging (difficult to recycle) will face escalating fees:

• 2026/27: 1.2x the base fee
• 2027/28: 1.6x the base fee
• 2028/29: 2.0x the base fee

Important to note: if you haven't assessed your packaging under RAM, it automatically defaults to Red rating.  This means businesses that proactively assess and improve their packaging will gain immediate cost advantages over competitors who delay.

The first invoices incorporating these eco-modulated fees are expected in the second half of 2026. For businesses investing in recyclable packaging now, this represents an opportunity to reduce costs by up to 50% compared to those using difficult-to-recycle materials.

The PRN system: a 2026 transition challenge

Alongside fee modulation, 2026 brings a fundamental change to how packaging exported for recycling is evidenced and reported. The UK Government is shifting the point of reporting and issuance of Packaging Export Recycling Notes (PERNs)[1] from the point of export to the point of receipt at a licensed facility abroad.

What's changing:

Under the current system, accredited exporters issue PERNs at the point of export, provided they demonstrate proof of overseas order, customs clearance and intent to recycle. From 1 January 2026, exporters must provide confirmed evidence from the final overseas facility that material has been received, accepted and recycled by an appropriately permitted site.

The 2026 gap:

This transition creates a one-off volume gap in 2026 PRN availability. As material travels overseas during the implementation period, there's a timing mismatch between when material leaves the UK and when it's confirmed as received and recycled abroad. This gap hasn't been fully accounted for in 2026 recycling targets, potentially creating market pressure on PRN availability and prices.  Businesses relying on exported material for compliance evidence, must spend time on careful planning and potentially alternative evidence routes during the transition period.

Further detailed changes to the PRN system are under discussion, aiming to strengthen the system for future years

Nation of Sale Reporting

One of the additional aspects of EPR for packaging data reporting is the nation (England, Scotland, Wales, Northern Ireland) in which their packaging is sold.  Always part of the plan, this had been put on hold as a measure to reduce the burden of change.  It has been confirmed that this will be required for reporting for the 2026 calendar year (due by 1^st April 2027).

That reporting may seem a long way off – but as with all things EPR, planning ahead is key to minimising the burden and avoiding a last-minute scramble to obtain the data.  ERP’s website will soon have all the details of this requirement – as well as the support which our Data Service team can provide.

WEEE regulations: the Online Marketplace shift

From 12 August 2025, Online Marketplaces (OMPs) became classified as a new class of producer of Electrical and Electronic Equipment (EEE) under amended UK WEEE regulations. This significant change means OMPs, are responsible for the WEEE compliance obligations of sales to UK household on their platforms by non-UK sellers and will need to be reporting these EEE volumes – and sharing their methodology behind the data.

What this means:

As WEEE recycling obligations are based on marketshare by weight, traditional UK producers should see their obligations and costs reduce – diluted by previously unreported volumes and making producer targets more accurate and equitable. For businesses selling through online platforms like Amazon, eBay or other marketplaces, understanding who holds the compliance responsibility is crucial.  If you're an OMP, you now have producer obligations and should already have registered with a WEEE scheme for 2026.

Vape recycling: the 12 August 2026 deadline

The regulatory focus on vapes intensifies significantly in 2026.

E-cigarettes and vapes were added as a separate category under revised WEEE regulations, recognising their unique environmental challenges, particularly regarding lithium batteries and other hazardous materials they may contain.

From 12 August 2026, specific recycling targets for vapes come into effect, with vape producers required to fund the real costs of collecting and recycling waste vapes through their compliance scheme.

Battery regulations: consultation on major changes expected

Looking beyond 2026, businesses should prepare for substantial changes to battery compliance requirements. The Environment Agency consultation on waste battery storage[1] and treatment facilities closed in September 2025 – and we expect to hear their conclusions and implementation plans in 2026.

Government have also started picking up the long-overdue revision of the UK’s Battery Regulations – with a consultation expected in 2026.  Significant changes are needed to address issues such as new applications of batteries – vehicles, bikes and scooters are all now offered with electric versions - and new chemistries such as Lithium-ion meaning there are very significant differences in recycling costs.  Approaches under consideration include following much of the recently adopted EU Battery Regulations.

At this stage there is much uncertainty – but the direction is clear: battery producers will face significantly more comprehensive obligations. Businesses importing products containing batteries, from power tools to electronics to electric vehicles, should track these developments closely and ensure they have a partner such as ERP who can help them monitor the developments, respond to the consultation and start planning for the implications.  The expected timeline suggests implementation during 2028.

The data challenge: building better systems

The operational requirements of EPR and PPT (Plastic Packaging Tax) compliance are substantial. Businesses must collect and submit extensive data covering:

• Precise packaging weights for every component
• Material specifications and compositions
• Evidence of recycled content percentages
• RAM classifications for all packaging formats
• Nation-specific packaging data
• WEEE types and weights – with additional records for vapes and online marketplaces
• Battery types and weights

For importers, obtaining accurate recycled content certificates from overseas suppliers that align with UK-specific requirements can be challenging. Many suppliers don't yet track this data in the format UK regulations demand.

However, businesses investing in robust data systems now are discovering additional benefits beyond compliance. Better data enables more informed procurement decisions, identifies cost-saving opportunities and strengthens supplier relationships.

The penalty for non-compliance can be significant (up to 20% of unpaid fees or 5% of UK turnover for packaging) but the rewards for getting it right extend well beyond avoiding penalties.

Sustainable design means recyclability

The introduction of eco-modulated fees makes Design for Recyclability (DfR) both a commercial opportunity and a compliance requirement. Businesses treating their packaging sustainability strategically are already seeing tangible benefits.

RAM v1.1. updated in May 2025, provides a clear framework for assessment across five critical stages: Classification, Collection, Sortation, Reprocessing and Application. Understanding this framework enables businesses to make informed design decisions that reduce costs.

Design principles for cost reduction.

Examples include:

• Packaging must typically be at least 40mm in two dimensions to pass the Sortation stage
• Integrated electrical components trigger automatic Red rating
• Substances of very high concern (SVHCs) result in Red classification
• PFAS materials (with limited exceptions) mean Red rating
• Non-compliant inks can downgrade your recyclability assessment

The businesses thriving under these new rules are redesigning their entire packaging strategies around recyclability principles. They're working with suppliers who understand RAM requirements, investing in mono-material designs and eliminating problematic components before they become costly liabilities.

Textiles EPR on the horizon?

Although packaging EPR dominates current compliance conversations, forward-thinking businesses are already preparing for the next wave: textile EPR or tEPR

For the past year the government’s Circular Economy Taskforce has been looking at key topics for a circular economy in the UK.  Their report is now expected in January 2026 and will cover textiles, including recommending an extended producer responsibility regime for textiles for the UK.  We know because we have engaged with them, sharing the experience of our colleagues in ERP Netherlands who have been running a textiles scheme since 2024. There will be several years of consultation and preparatory work ahead – but the direction of travel is clear: the same Extended Producer Responsibility principles applied to packaging, electronics and batteries will extend to textiles, creating new obligations for fashion retailers, manufacturers and importers.

The lesson from packaging EPR is clear: early preparation delivers competitive advantage through lower implementation costs, better supplier relationships and enhanced brand reputation.

Multiple regulations, integrated opportunities

EPR doesn't exist in isolation. Businesses are simultaneously navigating:

• Plastic Packaging Tax (PPT): £223.69 per tonne for packaging with less than 30% recycled content
• WEEE regulations: For businesses selling electrical and electronic equipment, including new OMP and vape obligations
• Evolving RAM methodology: Regular updates requiring ongoing assessment
• Vaping Product Duty: from 1 April 2026
• Battery regulation changes: Expected consultation in 2026
• PRN/PERN reporting transition: Managing the 2026 evidence gap
• Emerging textile regulations: Adding another compliance layer

Each regulation has different thresholds, reporting requirements and deadlines. Businesses taking an integrated approach are finding efficiencies. Data systems built for one regime often support others, and sustainable design principles apply across multiple regulations.

Turning compliance into competitive advantage

Proactive compliance creates genuine competitive advantages that extend well beyond regulatory requirements.

Businesses that have invested in sustainable packaging design are already benefiting from:

• Lower EPR fees through Green-rated packaging
• Enhanced brand reputation with eco-conscious consumers
• Reduced exposure to future regulatory changes
• Improved operational efficiency through better data systems
• Stronger supplier relationships built on shared sustainability goals

The public EPR register means customers, competitors and stakeholders can verify who's contributing fairly to the system. Transparency creates opportunities for businesses demonstrating environmental leadership.

Additionally, 51% of UK plastic packaging now meets the 30% recycled content threshold for Plastic Packaging Tax, demonstrating that sustainable packaging is increasingly becoming the market standard rather than the exception.

What you need to do now

The opportunity for strategic preparation is here. Here's your action plan:

1. Assess your current position

• Conduct a comprehensive packaging audit
• Identify all materials requiring RAM assessment
• Calculate your potential savings through eco-modulated fees
• Review your data collection systems
• Audit WEEE and battery compliance status
• Evaluate vape recycling programme requirements

2. Redesign for 2026

• Prioritise mono-material packaging designs
• Eliminate automatic Red-rating triggers
• Work with suppliers on recyclable alternatives
• Build recycled content into specifications
• Plan for PRN/PERN evidence during transition period

3. Strengthen your data infrastructure

• Implement robust tracking systems
• Establish clear supplier data requirements
• Create audit trails for recycled content claims
• Prepare for nation of sale reporting
• Build integrated compliance databases

4. Plan for multiple regulations

• Map all applicable compliance regimes
• Identify overlapping requirements
• Establish integrated reporting processes
• Monitor emerging battery and textile regulations
• Clarify OMP responsibilities if relevant

5. Partner with expertise

• Work with compliance specialists who understand the full regulatory landscape
• Leverage established takeback programmes for WEEE, batteries and vapes
• Access data services that simplify reporting
• Build long-term strategic partnerships

How ERP UK can help

Navigating this evolving regulatory environment requires specialist expertise, robust data systems and established infrastructure.

ERP UK provides comprehensive support across all your compliance needs:

• EPR Compliance Services: Expert guidance on packaging, WEEE and battery regulations, ensuring you meet all obligations whilst minimising costs and maximising opportunities for fee reduction.
• Data Services: Accurate, compliance-ready data collection and reporting systems that eliminate the administrative burden, reduce error risks and provide insights for better decision-making.
• Takeback Programmes: Established infrastructure for WEEE, batteries, vapes and packaging, providing the practical solutions regulations demand whilst supporting your sustainability goals.

With hundreds of businesses of all sizes already trusting ERP UK for their compliance needs, we combine deep regulatory knowledge with practical, flexible solutions tailored to your specific circumstances. 

Ready to turn 2026's EPR changes into competitive advantages?

Contact ERP UK today to discuss how our expertise in EPR compliance, data services and takeback programmes can help your business navigate the regulatory landscape.

Visit our website to find out more about our business or reach out to one of our compliance specialists to start your preparation today - contact us

Related services

Extended Producer Responsibility - visit the webpage here

About ERP UK

To learn more about ERP UK and our services please visit our About page

Contact us today:

Telephone: +44 (0)20 3142 6452

E-mail: uk@erp-recycling.org

Follow ERP UK on LinkedIn here: