The UK government will exempt glass drink containers supplied to pubs, restaurants and licensed hospitality venues from extended producer responsibility for packaging (pEPR) fees, Defra has announced. The exemption is expected to apply to fees calculated from April 2027 for glass containers sold directly from companies to hospitality groups.
Defra said the decision responded to industry concerns that certain businesses were effectively facing double charges on their recycling obligations, because they cover both commercial waste service costs and pEPR fees. With a review of fee structures already under way, the government said it had chosen to address the concerns raised by the British glass packaging industry directly, and would also look at further market engagement on how the regime is managed.
The pEPR regime began invoicing companies last year to cover the costs of managing the recycling and treatment of waste materials supplied to businesses and consumers. Defra stated that businesses would also be consulted on the fees they pay for packaging waste, so that easy-to-recycle packaging such as glass and paper costs less while hard-to-recycle packaging such as some plastics costs more, a change it said could cut fees for the most recyclable packaging by up to 40% per year.
MRW understands the measures recognise concerns that some hospitality groups were at risk of a “double charge” when funding collection and disposal services. At the same time, parts of the industry were expected to keep campaigning over how drinks in glass containers supplied indirectly via wholesalers are treated under the system.
Defra said the exemption tied into attempts to ensure pEPR could support and incentivise more sustainable business and consumer practices without undermining the overall case for introducing EPR. It said the government remains committed to the principle that producers should contribute towards the cost of managing packaging waste and help reduce it, 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.
Upcoming consultations
Defra said it was committed to launching a call for evidence in December on mechanisms to support scaled-up commitments for reusing 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 on the fees placed on manufacturers to cover the costs of treating packaging waste, in an attempt to understand how to encourage greater use of easy-to-recycle materials.
The department said the announcement marked an attempt to address concerns about 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 by the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September, and both investigations remain ongoing.
Industry responses
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, adding that the government was committed to supporting British business and that the changes back the glass industry and pubs while ensuring everyone does their bit to reduce waste.
British Glass said the announcement was a welcome change in policy, but noted the reforms would not take effect until the start of the third year of the pEPR regime, which runs from April 2027 to March 2028. Nick Kirk, the group's executive director, said the government had listened to concerns raised by glass manufacturers about appearing to penalise use of the material in packaging, and that the proposed changes begin to address some unintended consequences of pEPR while better recognising the environmental benefits of glass.
Kirk said the planned update to the glass material value, the proposed acceleration of modulation factors and the commitment to review future fee structures all move the system in a fairer direction, and he welcomed measures addressing glass packaging supplied to hospitality. He added that the full impact of the proposed exemption still needed to be understood, and welcomed 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 hospitality are 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 raise recycling rates and reduce waste, but that unfair allocation of costs undermines its effectiveness, adding that the association looks forward to working with Defra on a solution for indirect supply built on the ratio-based approach announced.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the stance on glass charges would be a relief to pubs, and that the direction of travel would be warmly welcomed, though the long-term cumulative impact of UK packaging policies must be considered. 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 equally benefit.