The Environment Agency has confirmed it will charge non-compliant businesses and non-domestic premises £118 per hour for Simpler Recycling regulatory work, with the charging scheme taking effect on 3 February 2026. Businesses found to be meeting their Simpler Recycling obligations will face no cost.

The consultation response, published on 3 February, drew just 60 responses when it ran last year. The Agency described the feedback as "mostly positive," though only 32 respondents were actually in favour, with 22 against and five neutral.

The legislation underpinning Simpler Recycling does not give the Environment Agency powers to issue fixed penalty notices. Several respondents called for FPNs as a quicker, cheaper way to punish non-compliance, and the Agency acknowledged these are "a useful enforcement tool for other regimes," but said the power is simply not available here.

The hourly charging approach is the Agency's main means of recovering enforcement costs in the absence of FPNs. Beyond that, the EA notes its options are limited: it can offer free advice, then issue a compliance notice, but if that is ignored the only next step is criminal prosecution through the courts. The Agency stated it would "only consider prosecution as a last resort" and noted that fines from court proceedings are returned to HM Treasury rather than the regulator.

Some respondents proposed a tiered fee structure based on business size or turnover. The Agency rejected this, stating that regulatory activity and costs are determined by "environmental risk and complexity rather than business size" and that charging on a time-and-materials basis follows the polluter pays principle.

The £118 hourly rate includes direct staff costs, corporate overheads, capital finance costs, and bad debt. Travel costs, including fuel and train tickets, are built into the rate, and travel time to compliance visits is chargeable where it forms part of the assessment. Respondents who questioned how the figure was calculated were directed to the Agency's published guidance..

Concern over business readiness

Respondents raised concerns about the financial pressure on smaller businesses, with several noting that the charge could affect organisations already facing economic challenges. However, micro-firms with fewer than 10 full-time equivalent employees are currently exempt until 31 March 2027.

According to WRAP and LARAC, approximately 10 per cent of England's 2.2 million businesses fell within scope when the regulations took effect for larger workplaces on 31 March 2025. And a survey conducted by First Mile in July 2024 found that 75 per cent of businesses with between 10 and 49 employees had not started planning for the changes at that point.

The consultation response also acknowledged concerns about "delivery timelines, pressure on supply chains for vehicles and containers, and the need to upgrade waste and recycling infrastructure." The Agency stated that it and Defra are "engaging with waste collectors and other key stakeholders across the sector" and that Defra continues to work with WRAP to assess potential interventions for supply chain bottlenecks. No specific measures or transitional arrangements were announced beyond the existing micro-firm timeline.

The Agency also confirmed there is no minimum volume threshold for food waste separation and that businesses in scope must arrange for its separate collection, regardless of quantity.

Since the regulations came into force, the Agency said its focus had been on engagement and advice, which has been provided free of charge. It stated it would "take a pragmatic approach, prioritising helping stakeholders understand new requirements and working with them to support them in overcoming any difficulties they might face in relation to compliance."