The UK Government has announced that glass drink containers supplied to pubs, restaurants and licensed hospitality venues will be exempt from extended producer responsibility for packaging (pEPR) fees, with the change expected to apply to fees calculated from April 2027.
Defra said the decision answered industry concerns that some businesses were effectively paying twice for their recycling obligations, covering both commercial waste service costs and pEPR fees. The exemption is expected to cover glass containers sold directly from companies to hospitality groups.
Origins of the charge
The pEPR regime began invoicing companies last year to fund the recycling and treatment of packaging waste placed on the market for businesses and consumers, and a review of fee structures was already under way. Defra said businesses will 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 such as some plastics costs more. The department said this could cut fees for the most recyclable packaging by up to 40% per year.
The exemption was 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.
Defra said the move was intended to ensure pEPR supports more sustainable business and consumer practices without undermining the case for producer responsibility. It said the Government remains committed to the principle that producers should contribute to 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 particular industries and hospitality businesses.
Consultations and trade measures
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 seeking feedback on the fees placed on manufacturers to cover treatment costs, in an effort to encourage easier-to-recycle materials.
The announcement also formed part of efforts to address market pressures on glass production and packaging, including two investigations 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 response
Dame Angela Eagle, the UK environment secretary, said the decision had been taken in response to calls from the packaging and hospitality sectors over charges on recyclable products, adding that the changes back the glass industry and pubs while making sure everyone does their bit to reduce waste.
British Glass said the announcement was a welcome policy change but noted the reforms would not take effect until the start of the third year of the pEPR regime, running from April 2027 to March 2028. Nick Kirk, the group's executive director, said the Government had listened to glass manufacturers' concerns. He said the proposed changes begin to address some unintended consequences of pEPR and better recognise the environmental benefits of glass, with a planned update to the glass material value, an accelerated move on modulation factors and a commitment to review future fee structures all pushing the system in a fairer direction. He also welcomed measures covering glass packaging supplied to hospitality, though he said the full impact of the 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 hospitality were not double-charged. He said soft drinks businesses take responsibility for recycling the packaging they place on the market seriously and a successful EPR scheme can raise recycling rates and cut waste, but that unfair cost allocation undermines its effectiveness. He added that 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 position on glass charges would bring relief to pubs. She said the direction of travel would be warmly welcomed, but the long-term cumulative impact of UK packaging policies had to be taken into account to sustain a prosperous beer and pub sector in every postcode. She said the measures could reduce cost pressures on Britain's brewers by tens of millions, but that it was vital the 12,000 publicans running leased and tenanted pubs as SMEs were included, otherwise over a quarter of Britain's pubs would not benefit equally.