Key Waste Management Changes for SMEs in 2026

Waste Management in 2026: What Every SME Needs to Know

Regulatory changes and sustainability expectations are transforming how UK businesses manage waste in 2026. Here's what SMEs need to know.

Simpler Recycling Requirements

Introduced on 31 March 2025 to make waste management easier and more consistent, Simpler Recycling currently applies to businesses and non-household premises with 10 or more full-time employees in England. The regulations require businesses to separate plastic, paper and card, glass, metals (cans, tins and foil), and food waste from general waste. 

From 31 March 2027, businesses with fewer than 10 FTEs must also comply with the full requirements. The Environment Agency has announced it will begin issuing hourly charges at a rate of £118 to non-compliant businesses to recover investigation costs from those found in violation of compliance requirements, making it essential to review your waste segregation practices and collection arrangements now.

Businesses in Scotland and Wales are already subject to similar workplace recycling requirements under the Waste (Scotland) Regulations 2012 and the Workplace Recycling (Wales) Regulations 2024. Please ensure you comply with your nation-specific legislation.

Small Electrical Waste Recycling (Wales) 

From 6 April 2026, all workplaces in Wales must separate small waste electrical items for recycling. This applies to any item with a plug, battery, or cable measuring 50cm or less on every side - including laptops, phones, kettles, hairdryers, toasters, medical devices, lighting, and power tools. 

Electrical items should not go in general waste or standard recycling streams. Where repair or reuse isn't possible, businesses must arrange collection through their waste provider, local authority, or specialist electrical recycler. Items containing lithium-ion batteries pose particular fire risks if crushed in general waste. 

Veolia offers a flexible, on-demand solution for your small waste electrical recycling requirements that complies with the legislation and helps recycle these materials and valuable metals, reducing carbon emissions. Get in touch to see how we can support your business.

Extended Producer Responsibility (EPR) 

If your business manufactures, imports, or sells packaged goods, EPR places greater responsibility on you for packaging waste. This particularly affects retailers, manufacturers, and brand owners handling over 50 tonnes of packaging annually or with turnover exceeding £2 million. 

Even if you're not directly obligated, EPR may influence your costs through supplier price increases. Understanding these cost signals will be crucial for budget planning and supplier negotiations throughout 2026.

Circular Economy Growth Strategy 

The government's Circular Economy Taskforce, established in 2024, is developing a framework for transitioning to a true circular economy. Expected to be published in 2026, the strategy will focus on priority sectors including textiles, construction, and plastics. 

For SMEs, this signals a longer-term shift towards waste reduction, reuse, and resource efficiency that will increasingly influence procurement decisions, client expectations, and future regulations. Taking proactive steps now will help future-proof your operations and strengthen your competitive position.

Sustainability Reporting Expectations 

Whilst not yet mandatory for most SMEs, clients increasingly demand detailed reporting on recycling performance and carbon impact. Auditable sustainability data is becoming essential for winning customers across every sector. 

Our Customer Hub provides actionable insights into your waste management, including carbon savings, waste diverted from landfill, and recycling rates, helping you turn sustainability efforts into measurable, reportable results that meet both current client expectations and prepare you for future reporting requirements.