S2, T9 and T4 exemptions: what changes in 2027

The waste exemption system is being reformed. Three exemptions are going to be removed, seven more are going to be tightened, and the changes will push some sites that have never held a permit into the permitting regime. When that happens, those sites also come into scope for digital waste tracking, because the receiving site duty applies to permitted sites.

One important point before the detail. The reforms come from a draft statutory instrument, The Environmental Permitting (England and Wales) (Amendment) (England) Regulations 2026, laid before Parliament on 20 October 2026. It is a draft affirmative instrument, so both Houses have to approve it before it can be made. The Environment Agency expects approval before 17 December 2026 and commencement on 6 January 2027. As at 4 November 2026 none of the changes is in force.

The reforms apply in England. Wales, Scotland and Northern Ireland run their own exemption regimes on their own timetables, and the dates below do not apply to exemption holders there.

The changes at a glance

Every date is counted from commencement on 6 January 2027, and none applies until the SI is approved.

What has been decided

Defra and the Welsh Government set out their approach to reforming waste exemptions in their consultation response, and restated it in the 2025 policy paper Reforming the waste exemptions system. The plan has two parts.

Three exemptions are being removed:

• U16, the use of depolluted end of life vehicles for parts
• T8, mechanically treating end of life tyres (granulating, baling, peeling, shaving, shredding and re-treading)
• T9, recovering scrap metal

Seven exemptions are being tightened rather than removed. They keep their purpose, but with stricter limits and conditions:

• U1, use of waste in construction, one of several being renamed to make their scope clearer
• T4, preparatory treatments such as baling, sorting and shredding
• T6, treating waste wood and plant matter
• T12, manually treating waste
• D7, burning vegetation at the site of production
• S1, storing waste in secure containers
• S2, storing waste at a secure site

For the tightened exemptions, expect lower storage limits, tighter rules on how long material can be kept, and conditions aimed at fire risk and stockpiling.

There are general changes too. Exemptions will not be allowed at a site that already holds an environmental permit, or on adjacent land with a direct link to a permitted site. Where more than one exemption is registered at a site, the storage limit for each waste type will be limited to the lowest limit set out in the exemptions registered. Registration will require more detail about what the site does, and there will be new record keeping duties for exempt activity.

Every change has a transition period, counted from 6 January 2027 if the regulations are approved: three months for the removals (U16, T8 and T9), six months for T4, T6, T12 and D7, and twelve months for U1, S1 and S2. That puts the withdrawal dates on 6 April 2027, 6 July 2027 and 6 January 2028.

When the changes take effect

That is the part that catches people out. None of the changes above is in force yet, and none applies until the regulations are approved. The dates are now published, though. The reforms are expected to be approved before 17 December 2026 and to come into force on 6 January 2027. From that date, T8, T9 and U16 are withdrawn three months later, on 6 April 2027.

Until the amendments come into force, existing exemptions work as they do today, and you can register or renew them as normal. Each transition period starts only when the regulations come into force.

When it does happen, sites using a removed exemption will need an environmental permit for that activity, or they will need to stop it. Sites using a tightened exemption will need to meet the new conditions, or apply for a permit.

The shortest transition window is three months, for the exemptions being removed. Permit applications take time to prepare, which is why the getting ready guidance already tells operators to review their exemptions and plan now rather than waiting for the regulations to be made.

Two further rules start on 6 July 2027 and both catch sites that already hold a permit. First, an exemption registered at or next to a permitted site has to be brought into the permit by that date, or the exempt activity stops. Transfer stations and treatment sites commonly hold T4 or T6 alongside their permit, so this is the change most likely to be missed. Second, where a site holds several exemptions, the storage limit for each waste type becomes the lowest of the limits registered.

Sources: GOV.UK, "Reforming the waste exemptions system" (policy paper, 15 July 2025) and "Waste exemptions: new rules from January 2027" (Environment Agency), both checked 4 November 2026.

Exemption by exemption

T8: end of life tyres

The T8 exemption lets an operator mechanically treat end of life tyres without a permit. It is withdrawn on 6 April 2027. A site that treats tyres after that date needs an environmental permit, usually the standard rules permit for storage and mechanical treatment. Tyre fitters and garages that only store tyres before collection are not affected.

T9: scrap metal

The T9 exemption covers recovering scrap metal by sorting, separating and cleaning it. It is withdrawn on 6 April 2027. Scrap metal operations then need a permit for the activity, and the application should be in before the withdrawal date so the site can keep working while it is processed.

U16: vehicle parts

The U16 exemption covers using depolluted end of life vehicles to recover parts. It is withdrawn on 6 April 2027. Vehicle dismantlers then need a permit for the activity.

T4: storing and preparing waste for treatment

The T4 exemption covers storing and preparing waste for treatment by baling, sorting or shredding. The conditions are tightened from 6 July 2027, with lower limits on how much can be stored. A site that cannot meet them needs a permit for the activity.

T6: treating waste wood and plant matter

The T6 exemption covers treating waste wood and plant matter, including chipping and shredding arisings on site. The conditions are tightened from 6 July 2027, with lower limits on what can be accepted and stored. In England the usual permit route is the standard rules permit for waste wood treatment.

T12: manually treating waste

The T12 exemption covers manually treating waste, such as sorting, separating and dismantling by hand. The conditions are tightened from 6 July 2027, with lower limits on the quantities held. Check the new limits before that date and apply for a permit if the site cannot work within them.

D7: burning plant waste where it is produced

The D7 exemption covers burning plant waste, such as vegetation and untreated wood, at the place where it is produced. The conditions are tightened from 6 July 2027. A site that burns waste outside those conditions needs a permit for the activity.

U1: using waste in construction works

The U1 exemption covers using waste materials in construction works. The conditions are tightened from 6 January 2028. Sites that use waste materials in construction should check how the new conditions apply to the works they carry out.

S1: storage in secure containers

The S1 exemption covers storing waste in secure containers at a place controlled by the producer. The conditions are tightened from 6 January 2028, with lower storage limits and more detail required at registration.

S2: storage at a secure site

The S2 exemption covers storing waste at a secure place controlled by the producer, other than in containers. The conditions are tightened from 6 January 2028, with lower storage limits and more detail required at registration.

What to do before 6 April 2027

The date is fixed in the draft instrument, so the work can be planned now rather than in the spring.

• Check which exemptions your site relies on, and whether T8, T9 or U16 appears on your permit, exemption register or site file.
• If you store or treat tyres under T8, or dismantle end-of-life vehicles under U16, work out which permit or variation you will need once the exemption is withdrawn.
• If you handle scrap metal under T9, confirm where the material will go after 6 April 2027, and whether that needs a permit or a change to an existing one.
• Apply before 6 April 2027. An application submitted before that date lets the site keep operating while it is determined.

What it means for digital waste tracking

Here is the connection that is easy to miss. Digital waste tracking applies to licensed or permitted waste receiving sites in England and Wales from 1 October 2026, with Scotland and Northern Ireland following in January 2027. A site that converts from an exemption to a permit becomes a permitted receiving site, so the duty to report every incoming load arrives with the permit.

Reporting means a digital record for every load, submitted within two working days starting the day after receipt, covering the waste description, EWC code, quantity, carrier details and when the load arrived. Paper waste transfer notes and hazardous waste consignment notes continue alongside the service for now, so digital reporting is an addition to the paperwork rather than a replacement, at least at first.

For sites that already hold a permit, nothing here changes the 1 October 2026 start. For sites that currently run on exemptions, the reforms bring the digital reporting duty one step closer, arriving behind the permit.

What to do now

• Check what you hold. Search the Environment Agency public register for exemptions registered at your site and list which activity each one covers. Many sites hold more than they realise.
• Read the conditions that are coming. The annexes to the government response set out the proposed conditions exemption by exemption. If you can meet them, the change is straightforward. If you cannot, the choice is between a permit and changing how you operate.
• Plan permits early. The shortest transition window is three months, and applications take preparation. Starting the work before the dates are announced takes the pressure off.
• Watch the official pages. The commencement date and the withdrawal dates appear on the waste exemptions service pages, and the getting ready guidance there is updated as things move.
• If you hold a permit already, the digital waste tracking start date of 1 October 2026 is fixed. Register with the service and get your reporting in place.

Apply early if an exemption is being removed. An operator that applies for a permit before 6 April 2027 can keep working under the exemption while the application is processed. An application after that date leaves the activity stopped until the permit is granted.

Reforms like this move slowly, then arrive with a short clock attached. The sites that cope best know which exemptions they hold and what the new conditions will ask of them, well before the transition periods start. If a permit application means you also need to report incoming loads, see digital waste tracking software for receiving sites.