Waste operations and audits: Guidance on Simpler Recycling and digital waste tracking

31 March 2026

Helen Gill

Two major regulatory changes are reshaping how food and drink businesses must handle waste: workplace recycling segregation requirements ('Simpler Recycling') and a new digital waste tracking service replacing paper-based duty-of-care records.

We have summarised below some of the key points to be aware of.

1. Simpler Recycling: Workplace waste separation requirements and new enforcement charges

What the rules require

The Separation of Waste (England) Regulations 2025 were made on 10 February 2025 and came into force on 31 March 2025. The rules require businesses to separate recyclable waste into different streams (paper/card, metal, plastic, glass) for collection. However, there is flexibility:

Metal, glass and plastic may be collected together in a combined stream if preferred.
Food waste and garden waste can also be collected together.

Simpler Recycling requirements have been in place since March 2025, but the regulatory landscape shifted materially in February 2026, when the Environment Agency introduced a cost-recovery charging scheme of £118 per hour for regulatory work carried out in connection with non-compliance.

This means that if the Environment Agency investigates your site and finds you are not meeting your obligations, you may be billed directly for the time it spends doing so. Critically, the hourly charge is not the limit of the Environment Agency's enforcement powers. Where a business is found to be non-compliant, the Environment Agency have various powers available to them, including the issuing of compliance notices; and failure to comply with such a notice is a criminal offence, carrying the risk of an unlimited fine on indictment.

The introduction of the cost-recovery charging scheme marks a clear transition from a period of guidance and awareness-raising to a framework in which non-compliance carries direct and escalating financial and legal consequences – including, since February, an hourly bill for regulatory time – alongside binding notices and, potential, criminal liability.

Updates since the rules were announced

In addition to the very recent powers allowing the Environment Agency to levy hourly fees in the event of non-compliance, since the rules were introduced last spring, we have also seen:

The introduction of the non-compliance reporting channel. Defra and the Environment Agency’s tool, which went live last summer, makes it easier for members of the public, employees, contractors or waste brokers to report non-compliance.
Defra’s core guidance was updated in October, and provides updated guidance on topics including contaminated recyclable waste and best practice relating to food waste (and also recycling at construction sites). Given that non-compliance can often flow from operation issues (such as the set up or locations of bins, food handling etc), keeping up to date with the post-implementation guidance is important.

Who is affected?

As a recap, the Regulations apply to "relevant non-domestic premises", which includes many food and drink sector businesses including:

Manufacturing sites and processing facilities.
Hospitality, such as cafes, restaurants, pubs, take-aways, and hotels.
Contract catering operations.
Distribution centres and warehouses.
Offices and administrative facilities.

Important exemption: Micro-firms (businesses with fewer than 10 full-time equivalent employees) are exempt until 31 March 2027.

Key compliance points

Businesses subject to the rules must:

Segregate core recyclable streams (paper/card, metal, plastic, glass) at source
Arrange for separate collection of these materials (not mixed with residual waste)
Provide appropriate bins/containers for staff and, where relevant, customer-facing areas
Ensure waste contractors collect segregated streams separately

Food waste: separate food waste collection is also part of the broader Simpler Recycling policy framework, building on existing requirements for larger food waste producers.

Practical challenges for the sector

Back-of-house space: kitchens, prep areas and bin stores often have limited room for multiple segregated containers.
Customer-facing areas: restaurants (including quick service restaurants) must provide customer bins that are clearly labelled and prevent contamination.
Contamination risk: mixed materials (e.g., food-soiled packaging, composites) can undermine recyclability and trigger rejection by contractors. This is one of the key operational risk areas, and was addressed in Defra’s guidance update.
Contract terms: existing waste contracts may need to be varied or re-tendered to deliver separate collections.
FM/landlord responsibilities: for leased or managed premises, establish who is responsible for compliance (occupier, landlord, facilities manager).

Whilst neither the core rules nor fundamental structure of the Simpler Recycling requirements have changed in the past year, the level of operational guidance and detail around how the scheme should work, and the enforcement infrastructure around this has changed. The very recent ability for the Environment Agency to charge in relation to matters of non-compliance is an important factor to note when assessing compliance across your business.

Actions for food and drink businesses: Simpler Recycling

Audit your bin infrastructure: do you have segregated containers for paper, card, plastic, metal, glass and food waste at all relevant locations?
Check waste contracts: confirm your collector can take segregated streams separately; if not, re-tender or vary the contract.
Train staff: explain what goes in which bin; contamination undermines recycling and can breach the duty.
Customer-facing sites: ensure bins in dining areas, forecourts, drive-throughs are clearly labelled and serviced frequently.
Lease/FM reviews: clarify responsibility for compliance in managed or multi-let buildings.
Micro-firm status: if you have fewer than 10 FTE employees, confirm your exemption status until March 2027.

2. Digital waste tracking service (DWTS)

What's changing and when?

A new mandatory electronic waste tracking system will replace traditional paper waste transfer notes (WTNs) from late 2026, and by the end of next year it may fundamentally change how food and drink businesses document and audit waste movements.

The Environmental Protection Act 1990 gives the UK Government power to require waste movements to be tracked electronically and to require that certain information is entered into the tracking system. Whilst the detailed secondary legislation is still being finalised that will provide the full details on how this will work, the government's published timetable indicates:

April 2026: secondary legislation to mandate DWTS expected
Phase 1: October 2026: service becomes mandatory for permitted/licensed waste receiving sites (England, Wales, NI); January 2027 (Scotland)
Phase 2: October 2027: service becomes mandatory for waste collectors/carriers

For food and drink businesses: although you may not be required to use DWTS directly in the first phase, Phase 2 (waste collectors from October 2027) is highly likely to impact the food and drink sector, and you should factor in time to prepare to ensure contracts, data systems and audit processes are ready.

What information will be tracked?

Information that may be specified includes information about the processing, movement or transfer to another person of waste or waste processing products, as well as persons to whom waste has been transferred, activities carried out by waste controllers in relation to waste, and details of waste controllers themselves.

The system is designed to:

Create an auditable digital trail for each waste movement
Enable regulators to detect illegal activity (fly-tipping, mis-description, unauthorised treatment)
Improve data quality for environmental reporting and circular economy metrics
Streamline compliance for legitimate operators

Why food and drink businesses should prepare for this new system

You produce waste: you will need to ensure your waste contractor is using DWTS when the service becomes mandatory for them (from October 2027). If your waste goes to a permitted receiving site (landfill, incinerator, AD plant, recycling facility), that site will need to be using DWTS from October 2026.

Data quality matters now: start cleaning up your waste data - site addresses, waste classification codes (EWC codes), tonnages, contractor permit/registration numbers - because these will feed into the digital system. Errors or inconsistencies that were tolerated in paper systems may trigger compliance failures or contractor rejection.

Audit trail becomes searchable: regulators (and potentially customers in your supply chain conducting ESG due diligence) will be able to interrogate waste movements digitally; ensure your waste is going to authorised, compliant destinations with a clear audit trail.

Contract clauses: build DWTS compliance obligations into waste service agreements now, so contractors cannot refuse to comply or charge premium rates when mandatory use begins. Clarify who is responsible for data entry, error correction and record retention.

Actions for food and drink businesses: Digital waste tracking

Data cleanse: compile accurate site details, EWC codes for each waste stream, contractor registration/permit numbers.
Engage contractors early: ask waste carriers and disposal sites about their DWTS readiness and timelines.
Contract updates: insert DWTS compliance clauses into new or renewed waste agreements.
System integration: if you use business management or sustainability reporting software, check whether it can interface with DWTS or export the required data in the right format.
Keep records: continue maintaining robust duty-of-care records in the interim—they remain legally required until DWTS becomes mandatory.

If you have any queries on environmental law matters, or need site-specific advice on Simpler Recyling and DWTS preparation, please contact our specialist team.

This article is provided for general information only and does not constitute legal advice.