By Dean Ferguson, CEO BV Associates Limited

The way businesses manage packaging waste in the UK is changing — and the impact will be significant. With new regulations shifting the cost of household packaging disposal directly onto producers, organisations must start preparing now.

As CEO of BV Associates, I believe these changes represent more than just a financial adjustment. They’re a call for businesses to rethink packaging strategies, embrace recyclability, and take real ownership of their environmental impact. In this blog, I’ll explain what the new rules mean, how the fees will work, and the practical steps your business can take to stay ahead.

What the New UK Packaging Waste Regulations Mean for Your Business

The UK has introduced new packaging waste rules that change who pays for household waste disposal — and it’s a shift that could directly affect your business.

From now on, ‘large’ organisations will need to cover the costs of managing the packaging they place on the market once it becomes household waste.

So, what does this mean in practice, and how should businesses prepare?

Who Counts as a ‘Large’ Organisation?

Your business falls into this category if you:

• Have an annual turnover of £2 million or more, and

• Handle or supply 50 tonnes or more of packaging or packaged goods each year in the UK.

If both apply, the new responsibilities are likely to affect you.

What’s Changing?

Until now, local councils have absorbed the cost of dealing with packaging waste. Businesses that created the packaging were not directly charged.

The new rules change that. Companies must now pay disposal fees for the packaging they put on the market — specifically packaging that ends up in the household waste stream.

This includes items such as:

• Plastic drinks bottles and cartons.

• Takeaway food containers.

• Confectionery wrappers.

• Glass drinks bottles.

In short, if it’s the packaging your customer takes home and throws in the bin or recycling, you’ll likely be paying for its disposal.

How Will Fees Be Calculated?

• Fees will be based on the amount of packaging placed on the market in 2024, with invoices starting in October 2025.

• The government has published Illustrative Base Fees (IBFs) as an early guide. These vary depending on material type (plastic, aluminium, paper, glass, etc.).

• Final fees for 2025 will be confirmed after April 2025, once all producer data has been submitted and analysed.

From year two onwards, the system will become more targeted:

• Easier-to-recycle packaging = lower fees.

• Harder-to-recycle packaging = higher fees.

This shift is designed to incentivise businesses to reduce waste and increase recyclability in their packaging choices.

Why Is This Happening?

The principle is simple: those who create packaging should also cover the costs of dealing with it when it becomes waste.

This is known as extended producer responsibility (EPR) or the polluter pays principle. It moves costs away from local authorities (and ultimately taxpayers) and onto the organisations introducing the packaging in the first place.

What Does This Mean for Your Business?

If you’re a large producer, you’ll need to start planning now. Key considerations include:

• Budgeting: Factor disposal fees into your future cost planning.

• Packaging design: Reducing the amount of packaging, or switching to more recyclable materials, could lower your fees.

• Data reporting: Ensure your packaging data is accurate and submitted on time to avoid penalties or incorrect charges.

• Internal processes: Fees must be paid directly by your business — you cannot use a compliance scheme or third party to handle them on your behalf.

5 Steps to Prepare Your Business

1. Check if you qualify – Confirm whether your organisation meets the ‘large producer’ criteria (£2m+ turnover and 50+ tonnes of packaging handled annually).

2. Gather accurate data – Start recording your packaging volumes and materials now so reporting in 2025 is straightforward.

3. Review packaging design – Explore opportunities to reduce packaging or switch to more recyclable materials to lower future costs.

4. Plan your budget – Factor disposal fees into financial forecasts for 2025 and beyond.

5. Assign responsibility – Ensure a dedicated person or team manages compliance, reporting, and fee payments (since these cannot be outsourced).

Summary

These changes represent one of the biggest shifts in packaging waste regulation in recent years. They will create new costs for businesses, but they also provide an opportunity: companies that innovate, cut down on packaging, and invest in sustainable materials will not only save money but also demonstrate leadership in environmental responsibility.

Now is the time to review your packaging strategy and make sure your business is prepared for the changes ahead.

Dean Ferguson

CEO, BV Associates Limited

Wording copy write BV Associates Ltd dtd 18 Sept 25.