Understanding the Financial Impact of EPR Fees

By now, most businesses in the packaging sector are aware of the UK’s Extended Producer Responsibility (EPR) scheme, but with the recent release of illustrative base fees, the actual costs are starting to hit home. If you’ve been putting off preparation, the time to act is now—because when the EPR fees go live in 2025, your packaging decisions could either protect your bottom line or lead to unexpected financial hits.

The EPR scheme is intended to shift the financial burden of packaging waste management from local councils to the businesses that produce or use packaging. For many companies, this represents a significant change in how they track, manage, and report their packaging data. In fact, getting the details right is now more important than ever because any errors in classification or reporting could lead to overpayment—and potentially hefty fines if you fail to comply with the new regulations.

But there’s good news: by acting now and leveraging the right tools, your business can avoid overpaying and ensure smooth compliance with the upcoming regulations. This article will break down the EPR fee structure, explain why accurate data reporting is key, and show how PackTotal can help you to easily and accurately collate and calculate your EPR obligations.

The Numbers That Matter: Understanding the EPR Fees

The UK government has recently published the illustrative base fees that will apply under the EPR scheme. These fees are linked to the type of packaging material you place on the market or dispose of. From 2026, the environmental impact of those materials will influence the amount you pay. The idea is to encourage businesses to shift towards more sustainable packaging solutions—so the less environmentally friendly the material, the higher the cost.

Here’s a breakdown of the illustrative base fees for 2025/26 for each packaging material in £ per tonne:

Version 3 of the EPR Fees released by DEFRA on 20th December 2024

This version of the illustrative base fees has been estimated using household data submitted through the Report Packaging Data (RPD) portal between January and June 2024. 

Watch a full replay of the original DEFRA Webinar on EPR Fees here. 

Why Accurate Data Is Critical to Minimizing EPR Costs

The EPR fees aren’t just a flat tax; they’re tied to your ability to classify and report your packaging data correctly. Misclassification can result in higher costs. For instance, household packaging waste typically incurs higher full net cost fees, while non-household waste is subject to PRNs (Packaging Recovery Notes), which are likely to be cheaper.

If your business can’t provide clear evidence that your packaging waste falls under the non-household category, you may face unnecessary costs that directly impact your bottom line. Moreover, industry experts warn that these extra fees might be passed on to consumers. A recent report from The British Home Enhancement Trade Association indicated that the packaging tax could lead to price increases on common household items like food, beverages, and cleaning products. Some analysts suggest UK households could see an increase of up to £60 per year in their spending due to these additional packaging costs.

It’s clear that data collection and classification accuracy will be essential for businesses looking to avoid overpaying. But this isn’t something you can easily manage with a spreadsheet—especially if you’re dealing with large volumes of packaging data across multiple departments.

PackTotal: The Solution for EPR Compliance and Cost Control

So, how can you ensure your business is prepared to meet the new EPR requirements and avoid overpaying?

This is where PackTotal’s packaging management system comes in. Our software is designed specifically to help businesses track, manage, and classify their packaging data with complete accuracy.

PackTotal simplifies data collection by enabling each department to input and manage its own data, ensuring responsibility is shared across your team. To further enhance accuracy, PackTotal can automatically import data from your existing management systems, significantly reducing the risk of human error associated with manual data entry. This approach minimizes the chances of data collation errors, ensuring your reporting is both accurate and fully compliant. 

With EPR fees evolving and new regulations being introduced regularly, PackTotal ensures that your calculations are always up-to-date and compliant—automatically. This eliminates the need for manual tracking of every regulatory change, a time-consuming and error-prone process when relying on spreadsheets.

Beyond compliance, PackTotal provides valuable insights into your packaging data, allowing you to make informed decisions about materials. If you’re using materials that are costly under the EPR scheme, PackTotal can help you identify opportunities to switch to more sustainable, cost-effective alternatives.

Preparing for Future Changes: The Evolution of EPR

While the EPR fees come into effect in 2025, the fee structure is set to evolve further. The introduction of modulated fees in 2026 will mean that packaging materials with a higher environmental impact will attract even higher costs, while more easily recyclable materials will come with lower fees.

This shift is designed to encourage businesses to adopt greener packaging practices. Companies that fail to adapt could likely face even steeper costs in the coming years. By preparing now, businesses can avoid future penalties and position themselves as leaders in sustainable packaging.

PackTotal can help you navigate these changes by providing detailed reporting on the materials you use and how they impact your costs. With clear data, you can make strategic decisions to shift towards more sustainable materials that reduce your environmental impact and save on EPR fees in the long term.

How Can Your Business Stay Ahead of EPR?

While the EPR scheme presents challenges, it also offers opportunities. Companies that take proactive steps to improve data accuracy, streamline compliance processes, and shift to more sustainable packaging will be better positioned to manage costs and avoid penalties.

With PackTotal, you can take control of your packaging data and ensure that your business is ready to meet the evolving EPR requirements. From accurate data tracking to real-time regulatory updates, PackTotal simplifies compliance and helps you avoid costly mistakes. More importantly, it empowers you to make informed decisions about your packaging materials, reducing costs while improving sustainability.

Want to learn more about how PackTotal can help your business stay compliant and minimize EPR costs? Contact us to discuss how we can help or to schedule a demo.