Extended Producer Responsibility (EPR) means affected UK businesses are responsible for some of the costs associated with managing packaging waste. For packaging producers, these obligations can add significant costs.

Fortunately, there are ways to reduce EPR costs. Reviewing packaging weight, removing unnecessary packaging, improving recyclability and maintaining accurate packaging data can all make a difference. These changes can also help reduce waste and the environmental impact of packaging.

How Are Packaging EPR Fees Calculated?

EPR fees for household packaging are calculated using the packaging data reported by producers, including the packaging material and weight placed on the market.

For 2025/26, base fees vary by material category. Paper and board are charged at £196 per tonne, while plastic is £423 per tonne.

From 2026/27, modulated fees also take recyclability into account. Packaging is assessed using the Recyclability Assessment Methodology(RAM) and receives a red, amber or green rating. Packaging with poorer recyclability can incur higher fees.

This means reducing packaging weight, choosing appropriate materials and improving recyclability can all play a part in managing EPR costs.

5 Ways to Reduce EPR Costs

Reducing EPR costs starts with understanding where changes can be made across your packaging and reporting processes. From reducing packaging weight to improving data accuracy, here are five practical ways to manage EPR fees while reducing your environmental impact.

1. Reduce Packaging Weight

Packaging weight is directly linked to EPR costs, so using less material is one of the most effective places to start. Review your packaging to identify opportunities to reduce packaging without affecting product protection.

This could involve right-sizing boxes, using lighter packaging material or cutting unnecessary packaging and void fill. Even small reductions can make a difference when applied across large volumes of packaging placed on the market.

Reducing material use can also lower waste, improve efficiency across the supply chain and reduce your environmental footprint.

2. Improve Packaging Recyclability

Improving recyclability is increasingly important for businesses looking to reduce EPR fees. Under the Recyclability Assessment Methodology, packaging is assessed according to how effectively it can be recycled.

Modulated fees mean packaging with poorer recyclability can incur higher fees. Choosing widely collected, highly recyclable materials and avoiding packaging designs that are difficult to separate can help improve recyclability.

Where suitable, switching from complex combinations of different materials to simpler designs can make recycling easier. This can also support a circular economy and reduce the environmental impact of packaging waste.

3. Review the Packaging Materials You Use

The packaging material you choose can affect both recyclability and EPR fees. Different materials have different base fees, so reviewing the materials used across your packaging range could identify opportunities to reduce costs.

However, choosing packaging shouldn't be based on fees alone. Product protection, packaging weight, recyclability and the amount of material required should all be considered.

Sustainable packaging solutions that use recyclable materials and less material overall can help businesses reduce waste while maintaining the performance their products require.

4. Improve Packaging Data Accuracy

Accurate packaging data is essential for calculating EPR fees correctly. Large producers should make sure the packaging reported reflects the materials and packaging weight they actually place on the market.

Regularly reviewing data collection processes can help identify incorrect classifications, inaccurate packaging weights or errors when distinguishing between household and non-household packaging. Good data accuracy can help avoid unnecessary costs and make it easier to report packaging data correctly.

Keeping clear records can also support EPR compliance and reduce the risk of issues caused by inaccurate reporting.

5. Work With a Packaging Supplier to Reduce Packaging

An experienced packaging supplier can help identify opportunities to use less packaging material without compromising product protection.

This might include right-sizing packaging, reducing excess void fill or switching to alternative materials and designs with better recyclability. For businesses using packaging at scale, small changes can result in significant reductions in the total weight of packaging used.

At Kite Packaging, we can assess your current packaging requirements and recommend sustainable packaging solutions that help reduce waste, improve efficiency and manage EPR costs.

Reduce Your EPR Costs With Kite Packaging

Reducing packaging material, improving recyclability and choosing the right packaging can help your business manage EPR costs while reducing its environmental impact.

Kite Packaging can help you review the materials used across your operation and identify opportunities to reduce packaging and waste. Our sustainable packaging solutions can also support your wider environmental goals without compromising product protection.

Speak to your Kite account manager to discuss your packaging requirements and discover where changes could help lower your packaging EPR costs.

FAQs

Understanding EPR costs can be challenging, particularly as the requirements continue to develop. Below, we answer some common questions about EPR fees, packaging data and the steps businesses can take to reduce costs.

How can I reduce EPR costs?

Businesses can reduce EPR costs by reviewing packaging weight, removing unnecessary packaging, improving recyclability and ensuring packaging data is accurate. Choosing suitable packaging materials and reducing the total amount used can also help manage PEPR fees.

How do modulated fees affect EPR costs?

Modulated fees link the recyclability of packaging to the fees producers pay. Under the EPR scheme, packaging with poorer recyclability can attract higher fees, while better-performing packaging can incur lower fees. This gives packaging producers a financial incentive to consider recyclability when making packaging decisions.

Can improving recyclability reduce EPR fees?

Yes, improving recyclability can help businesses reduce EPR fees under the modulated fee system. Packaging design, material choice and how easily different materials can be separated can all affect recyclability assessments.

Does packaging weight affect EPR fees?

Yes. EPR fees are calculated based partly on the weight and material category of obligated packaging placed on the market. Using accurate packaging weights is therefore important when businesses report packaging data. Reducing packaging weight can also help lower fees where less obligated packaging is supplied.

Can incorrect packaging data increase EPR costs?

Incorrect packaging data can affect the calculation of PEPR fees and create compliance issues. Producers should maintain accurate records and check their data before reporting it to help ensure fees are calculated using the correct packaging information.

What happens if my business doesn't comply with packaging EPR?

Businesses covered by packaging EPR must meet the relevant reporting, registration and payment requirements. Non-compliance can result in enforcement action and additional compliance costs.

Large businesses should understand their responsibilities, keep accurate packaging data and meet applicable deadlines to avoid penalties. The Environment Agency regulates packaging EPR in England, with equivalent regulators responsible for compliance elsewhere in the UK.