How the UK’s Extended Producer Responsibility Rules Are Changing Corporate Merchandise Sourcing
For years, the Plastic Packaging Tax was the only compliance line procurement teams had to budget for. That is no longer the case. Since October 2025, UK businesses placing packaging on the market have also faced Extended Producer Responsibility (EPR) invoices. Stacked together, these two costs are reshaping how companies buy branded merchandise, from event giveaways to retail packaging.
The Plastic Packaging Tax bill keeps climbing
Introduced in April 2022, the Plastic Packaging Tax applies to plastic packaging containing less than 30% recycled content, provided a business manufactures or imports 10 tonnes or more annually. The rate rises every April with inflation: £223.69 per tonne from April 2025, and £228.82 per tonne from April 2026. For a company shipping thousands of branded plastic bags or blister packs a year, this fee quietly inflates raw material and production spend.
EPR adds a second, heavier layer
Extended Producer Responsibility works differently. Administered by PackUK, it obliges “large” organisations, turnover above £2 million and handling over 50 tonnes of packaging annually, to cover the full cost of collecting, sorting, and recycling that packaging once it becomes household waste. Base fees took effect in October 2025 for packaging placed on the market in 2024, with material rates making plastic by far the most expensive: £423 per tonne, compared to £192 for glass and £196 for paper and card. Modulated fees arrive from 2026-27, adjusting charges based on recyclability. Poorly designed plastic items will only become costlier.
Why this matters for merchandise budgets
Corporate merchandise often sits in a blind spot. Because it is rarely bought through core packaging channels, marketing and procurement teams often overlook that it falls under the exact same rules. A branded plastic tote, a conference lanyard pouch, or virgin-plastic gift packaging all qualify. Combined, the Plastic Packaging Tax and EPR base fee can turn an apparently cost-effective merchandise order into a far more expensive line item.
Switching materials is the simplest way out
The most direct way to dodge both charges is to move away from plastic altogether. Natural-fibre alternatives such as jute are exempt from both the Plastic Packaging Tax and the high EPR plastic base rate. They also perform well under modulated fee structures that reward recyclable, low-impact materials. For procurement teams reviewing merchandise specifications, GoJute’s practical guide to sustainable bag materials highlights which fabrics offer the best durability without adding to the compliance bill.
With both schemes now live and rates rising, treating packaging material as a compliance decision, and not just a design choice, is becoming standard practice for UK procurement teams.
