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 change is expected to apply to fees calculated from April 2027 for glass containers sold directly by 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 covered both commercial waste service costs and pEPR fees.
The pEPR regime began invoicing companies last year to fund the recycling and treatment of packaging waste supplied to businesses and consumers. A review of fee structures was already under way, and the government said the announcement directly addressed concerns raised by the British glass packaging industry, with further engagement planned on how the regime is managed.
Under the plans, 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, including some plastics, costs more. Defra estimated this could reduce fees for the most recyclable packaging by up to 40% per year.
The department said the exemption was intended to ensure pEPR supports more sustainable business and consumer practices without undermining the overall case for extended producer responsibility. It said the government remained committed to the principle that producers should contribute to the costs of managing packaging waste, noting that £1.4bn had already been 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.
Further consultations are planned. Defra said it would launch 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 early next year will see the pEPR administrator, PackUK, seek feedback on the fees placed on manufacturers to cover the cost of treating packaging waste, with the aim of encouraging more easy-to-recycle materials.
The announcement also comes amid market pressure on glass production and packaging. Two investigations have been launched by the independent Trade Remedies Authority into imported glass containers from China and Turkey, and a provisional anti-dumping measure on Chinese imports was imposed on 9 September following a recommendation by the authority. 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 about charges imposed on recyclable products, adding that the government was committed to supporting British business and backing the glass industry and pubs while reducing waste.
Industry reaction
British Glass said the announcement was a welcome policy change, but noted that 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. 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. He said the proposed changes began to address some unintended consequences of pEPR and better recognised the environmental benefits of glass, with the planned update to the glass material value, the proposed acceleration of modulation factors and a commitment to review future fee structures all moving the system in a fairer direction. He also welcomed measures covering glass packaging supplied to the hospitality sector, although the full impact of the exemption still needed to be understood, and welcomed the planned market engagement on fee methodology and potential support for reuse.
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 were not double-charged. He said soft drinks businesses took responsibility for recycling the packaging they place on the market, and that a successful EPR scheme could raise recycling rates and cut waste, but an unfair allocation of costs undermined 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 stance on glass charges would be a relief to pubs across the country. She said the direction of travel would be warmly welcomed, but the long-term cumulative impact of UK packaging policies needed to be considered. She said the measures could reduce cost pressures on Britain's brewers by tens of millions, but argued it was vital that the 12,000 publicans running leased and tenanted pubs as SMEs were included, otherwise more than a quarter of Britain's pubs would not benefit equally.