The UK government will exempt glass drink containers supplied to pubs, restaurants and licensed hospitality venues from packaging extended producer responsibility (pEPR) fees, Defra has announced, with the change expected to apply to fees calculated from April 2027.
According to the department, the decision responds to industry concerns that certain businesses were effectively facing double charges on their recycling obligations, covering both commercial waste service costs and pEPR fees. The exemption is expected to apply to glass containers sold directly by companies to hospitality groups.
Why the change was made
The pEPR regime began invoicing companies last year to fund the recycling and treatment of waste materials supplied to businesses and consumers. A review of fee structures was already under way when the government decided to address the concerns raised by the British glass packaging industry directly, and it said it would also carry out additional market engagement on how the regime is managed.
Defra said businesses would also be consulted on the fees they pay for packaging waste, so that easy-to-recycle materials such as glass and paper cost less while hard-to-recycle packaging, including some plastics, costs more. The department said this could reduce fees for the most recyclable packaging by up to 40% a year.
MRW reported understanding that the measures recognised concerns that some hospitality groups risked a 'double charge' when funding collection and disposal services. Further campaigning was expected from parts of the industry over how drinks in glass containers supplied indirectly through wholesalers are affected by pEPR.
Defra said the exemption was intended to ensure pEPR supports and incentivises more sustainable business and consumer practices without undermining the overall case for the regime. The government said it remained committed to the principle that producers should contribute towards the cost of managing packaging waste, with £1.4bn already provided to councils through the scheme to improve recycling services, while recognising that pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
Consultations and trade measures
Defra said it was committed to launching a call for evidence in December on mechanisms to support scaled-up commitments to reuse packaging as a way of curbing waste and plastics use. A separate market engagement scheduled for early next year will see the pEPR administrator, PackUK, seek feedback and views on the fees placed on manufacturers to cover the cost of treating packaging waste, with the aim of encouraging the use of easier-to-recycle materials.
The announcement also referenced market pressures on glass production and packaging, including two investigations launched by the independent Trade Remedies Authority into imported glass containers from China and Turkey. Following a recommendation from the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September, and both investigations remain ongoing.
Environment secretary Dame Angela Eagle said the decision had been taken in response to calls from the packaging and hospitality sectors over charges imposed on recyclable products. She said the changes back the glass industry and pubs while ensuring efforts to reduce waste continue.
Industry reaction
British Glass said the announcement was a welcome change in policy but noted that the reforms would not take effect until the start of the third year of the pEPR regime, running from April 2027 to March 2028. Executive director Nick Kirk said the government had listened to concerns raised by glass manufacturers about appearing to penalise use of the material in packaging applications. He said the proposed changes begin to address some of the unintended consequences of pEPR and better recognise the environmental benefits of glass, with the planned update to the glass material value, an accelerated timetable for modulation factors and a commitment to review future fee structures all moving the system in a fairer direction.
Kirk also welcomed measures addressing glass packaging supplied to the hospitality sector. He said the full impact of the proposed exemption still needed to be understood, but that it was encouraging to see government recognising the challenges facing hospitality businesses and taking steps to avoid unnecessary costs. He welcomed the planned market engagement on the future of the fee methodology, including potential support for reuse initiatives.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a significant first step towards ensuring drink containers used by the hospitality sector were not double-charged. He said soft drinks businesses take seriously their responsibility for recycling the packaging they place on the market, and that a successful EPR scheme can increase recycling rates and reduce waste, but that unfair allocation of costs undermines its effectiveness. The association said it looked forward to working closely with Defra on a solution for indirect supply that builds on the ratio-based approach announced.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the direction of travel on glass charges under pEPR would be a relief to pubs across the country, while stressing that the long-term cumulative impact of UK packaging policies must be taken into account. She said the measures could reduce cost pressures on Britain's brewers by tens of millions, but that the 12,000 publicans running leased and tenanted pubs as SMEs must also be included, otherwise more than a quarter of Britain's pubs would not benefit equally from the change.