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.
Addressing double charging
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. With a review of fee structures already under way, the government said it had decided to address concerns raised directly by the British glass packaging industry, and would also look at further market engagement on how the regime is managed.
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. The department said this could reduce fees for the most recyclable packaging by up to 40% per year.
The measures were understood to recognise 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 treated under pEPR.
Timing and further consultations
British Glass noted that while the announcement marked a welcome policy change, 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.
Defra said it would launch 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 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, with the aim of encouraging more easily recyclable materials.
The department said the government remained committed to the principle that producers should contribute towards the costs 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.
Industry reaction
Nick Kirk, executive director of British Glass, said the government had listened to concerns raised by glass manufacturers and moved to avoid appearing to penalise use of the material in packaging. He said the proposed changes begin to address some unintended consequences of pEPR and better recognise the environmental benefits of glass, pointing to the planned update to the glass material value, the proposed acceleration of modulation factors and the commitment to review future fee structures. He added that measures covering glass packaging supplied to hospitality were welcome, although the full impact of the proposed exemption still needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a significant first step towards ensuring drink containers used by the hospitality sector do not face double charging. He said soft drinks businesses take responsibility for recycling the packaging they place on the market seriously and that a successful EPR scheme can raise recycling rates and cut waste, but that an unfair allocation of costs undermines its effectiveness. He said the association looked forward to working 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 stance on glass charges would come as a relief to pubs across the country. She said the direction of travel would be warmly welcomed, but that the long-term cumulative impact of UK packaging policies must be taken into account for a prosperous beer and pub sector. She said the measures could reduce cost pressures on Britain's brewers by tens of millions, and stressed 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.
Trade measures
Defra said the announcement was part of attempts to address 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.
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 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.