Why SMEs are expected to close the waste management compliance gap from 2025
Tuesday 1st July 2025
Waste management may not be the most glamourous or exciting aspect of any business, but is one every company, large or small, will have to closely consider as more environmental and sustainability legislation is introduced.
Large businesses tend to produce a lot of waste, which is why waste management regulations have tended to target large businesses over smaller ones in recent years. But for SMEs in England and Wales, that has all changed with the recent introduction of Simpler Recycling regulations.
One of the main aims of these alterations is to close the waste management compliance gap between SMEs and large corporates. 99% of private UK businesses are SMEs, so the collective benefit of better waste habits will have a significant effect on sustainability efforts.
If you run an SME, it is critical that you stay up to date with the latest regulations to make your business more efficient and less wasteful. Here’s an introduction to new regulations and why the compliance gap is closing between small businesses and their larger counterparts.
Changes to Simpler Recycling regulations
Waste management may not be the most glamourous or exciting aspect of any business, but is one every company, large or small, will have to closely consider as more environmental and sustainability legislation is introduced.
Large businesses tend to produce a lot of waste, which is why waste management regulations have tended to target large businesses over smaller ones in recent years. But for SMEs in England and Wales, that has all changed with the recent introduction of Simpler Recycling regulations.
One of the main aims of these alterations is to close the waste management compliance gap between SMEs and large corporates. 99% of private UK businesses are SMEs, so the collective benefit of better waste habits will have a significant effect on sustainability efforts.
If you run an SME, it is critical that you stay up to date with the latest regulations to make your business more efficient and less wasteful. Here’s an introduction to new regulations and why the compliance gap is closing between small businesses and their larger counterparts.
.jpg?sfvrsn=f78ecae8_1)
Changes to Simpler Recycling regulations
From 31st March 2025 (or 31st March 2027 for micro-firms with fewer than 10 full time employees), all small and mid-sized businesses in England are required to separate their waste before collection into dry recyclables (card, plastic, paper, glass, and metal), food waste, and non-recyclables. They will be provided with separate bins for each category. If you provide bins for customers, this waste must also be separated.
You can decide how frequently your waste needs to be collected and what size bins you require based on the level of waste you produce. Any garden waste must also be composed or recycled.
Collections can be organised with local authorities or with private waste collectors. If you aren’t sure where to start, it’s worth reaching out to reputable waste management companies to understand the services available.
If you do not separate your waste, you risk receiving a compliance notice from the Environment Agency (EA). This can then lead to further penalties against you and your business.
What does this mean for your business?
The purpose of these regulation changes is to encourage SMEs to improve waste management practices and help meet sustainability goals. You may need to find a new waste collector if your current one does not offer a full range of collection services.
While this may mean more work in the short term – organising separate waste receptacles and training staff with regards to which waste goes in which bin – in the long term it should make recycling and overall waste management a much simpler process. Since the waste management needs of small and medium size enterprises tend to be much more straightforward than those of larger companies, the process of recycling and waste management has been made equally straightforward.
Previously, there has been something of a “postcode lottery” when it comes to waste collections, with different local councils agreeing or refusing to accept different materials for recycling. This has caused a lot of confusion and frustration, as well as a lot of needless waste. These new rules are the default across England, so everyone can be aware of their role when it comes to waste management.
In theory, the new Simpler Recycling regulations should make your business more efficient by simplifying the disposal process and encouraging the reuse and recycling of materials. This will present you with an opportunity to assess your business goals when it comes to waste management.
A more effective and efficient waste management process can only be good for your business. It reduces the amount of waste you dispose of and encourages you to prioritise waste prevention. This helps your business become a more sustainable enterprise which benefits the local community.
