Packaging compliance is becoming harder for UK businesses to shrug off as a problem for someone else. The latest sign came on 23 March, when PackUK announced that UK Packaging PRO has been appointed as the producer-led body that will help deliver the UK’s packaging extended producer responsibility scheme from 1 April.
That may sound like the kind of industry housekeeping most small firms can ignore. In reality, it is another sign that the packaging regime is settling into place, and businesses that import, fill, brand or sell packaged goods should make sure they know whether they are caught.
The first thing to say is that not every small business is affected. GOV.UK guidance says you need to collect and report packaging data if your organisation has annual turnover of £1 million or more, handled more than 25 tonnes of packaging in the previous calendar year, and carries out packaging activities such as supplying branded packaged goods, placing goods into packaging, importing products in packaging, running an online marketplace for non-UK sellers, hiring reusable packaging, or supplying empty packaging.
What has changed
According to PackUK’s announcement, UK Packaging PRO will formally begin its role on 1 April 2026. The organisation has been set up by producers and backed by major brands, retailers and trade bodies. PackUK says the new body will help shape delivery of the packaging EPR scheme, while key powers such as final decisions on producer fees and local authority payments will still stay with PackUK.
In other words, this is not a brand-new tax landing out of nowhere today. The rules and obligations have already been developing. What this appointment does is make the whole system look more real, more organised and more likely to keep moving rather than drifting into another long delay.
Why it matters for smaller firms
If your business sells coffee in takeaway cups, runs an own-brand food line, imports packaged stock, ships a high volume of online orders, or buys in empty packaging for products you fill yourself, this is worth checking properly. The risk is not only the eventual fee bill for larger producers. It is also the admin burden of understanding which packaging counts, gathering the data, and working out whether you fall into the small-producer or large-producer category.
GOV.UK says small producers are generally those above the £1 million turnover threshold that supply more than 25 tonnes of packaging, but stay below the higher large-producer thresholds. Large organisations are those with turnover of £2 million or more and more than 50 tonnes of packaging. Large producers face broader obligations, including regular reporting, waste disposal fees, scheme administrator costs and recycling evidence requirements.
That means a business does not have to be a household name to be affected. A growing food wholesaler, regional retailer, importer, drinks brand, ecommerce seller or hospitality operator can hit these thresholds sooner than expected, especially once all packaging formats are counted across a year.
What SMEs should do now
First, do not assume you are too small without checking the numbers. Look at your most recent turnover, estimate the volume of packaging you handled last year, and map where packaging enters your operation. For some firms, the packaging obligation sits with a supplier or brand owner. For others, especially own-brand sellers and importers, it may sit closer to home than expected.
Second, get clearer on your packaging data before the next deadline forces a scramble. Even where the fee impact is modest, the time cost can be frustrating if records are poor. Businesses with finance teams, ops managers or external accountants should make sure somebody actually owns this piece of work.
Third, budget for change. The point of packaging EPR is to push costs and incentives back towards producers, encourage more recyclable packaging and fund better waste collection. That could gradually influence packaging choices, margins and supplier decisions. For firms already battling tight costs, it is better to review packaging now than to discover later that the least recyclable option is also the most expensive to keep using.
The practical takeaway
Today’s announcement does not mean every independent shop or café suddenly faces a new bill next week. But it does mean the packaging EPR system is becoming more concrete, with a named industry body stepping into delivery from April.
For SMEs, the sensible response is simple: check whether you are in scope, make sure packaging data is not an afterthought, and treat packaging as a live compliance and cost issue rather than a background admin chore. Businesses that sell, import or package at scale will be better off getting organised now than waiting for the scheme to feel urgent.
Sources
- PackUK, UK Packaging PRO appointed to deliver Extended Producer Responsibility for packaging scheme, published 23 March 2026
- GOV.UK, Extended producer responsibility for packaging: who is affected and what to do, accessed 23 March 2026
