The UK government will exempt glass drink containers supplied to pubs, restaurants and licensed hospitality venues from extended producer responsibility for packaging (pEPR) fees next year. Defra said the decision responded to industry concerns that some businesses were effectively being charged twice, through both commercial waste service costs and pEPR fees. The change is expected to apply to fees calculated from April 2027 for glass containers sold directly by companies to hospitality groups.
The pEPR regime began invoicing companies last year to cover the recycling and treatment of packaging waste placed on the market. Defra said a review of fee structures was already under way and that it would hold further market engagement on how the regime is managed. Businesses will also be consulted on packaging waste fees, with the aim of making easy-to-recycle materials such as glass and paper cost less and hard-to-recycle plastics cost more. Defra said this could reduce fees for the most recyclable packaging by up to 40% a year.
The exemption was understood to recognise concerns that hospitality groups could face a double charge when funding collections and disposal services. Further industry campaigning is expected over glass containers supplied indirectly through wholesalers, which are outside the direct-supply arrangement announced by Defra.
Defra said the exemption was intended to support more sustainable business and consumer practices without undermining the case for EPR. The government said producers should still contribute to the cost of managing packaging waste and reducing it, and that £1.4bn had already been provided to councils through the scheme to improve recycling services. It added that pEPR had to operate fairly and not disproportionately affect particular industries or hospitality businesses.
Consultations and market pressures
Defra plans to launch a call for evidence in December on mechanisms to support larger-scale commitments to reuse packaging and curb waste and plastics use. A separate market engagement early next year will involve PackUK, the pEPR administrator, seeking feedback on the fees placed on manufacturers to cover packaging waste treatment. The exercise is intended to examine how to encourage greater use of easy-to-recycle materials.
Defra linked the announcement to 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 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 responded to calls from the packaging and hospitality sectors about charges on recyclable products. She said the government was supporting British business and the glass industry and pubs while working to reduce waste.
Industry reaction
British Glass welcomed the policy change but noted that the reforms would not take effect until the third year of the pEPR regime, running from April 2027 to March 2028. Nick Kirk, the group’s executive director, said the changes began to address unintended consequences of pEPR and gave greater recognition to the environmental benefits of glass. He pointed to a planned update to the glass material value, a proposed acceleration of modulation factors and a commitment to review future fee structures as steps toward a fairer system.
Kirk also welcomed measures addressing glass packaging supplied to hospitality, while saying the full impact of the proposed exemption needed to be understood. He welcomed the planned market engagement on the future fee methodology and potential support for reuse initiatives.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a significant first step toward preventing double-charging for drink containers used by hospitality businesses. He said soft drinks companies took responsibility for recycling the packaging they place on the market and that a successful EPR scheme could increase recycling rates and reduce waste, but unfair cost allocation would undermine 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 direction on glass charges would be a relief to pubs across the country. She said the long-term cumulative impact of UK packaging policies had to be considered if the beer and pub sector was to prosper in every postcode. The measures could reduce cost pressures on brewers by tens of millions, she said, but the 12,000 publicans running leased and tenanted pubs as small and medium-sized enterprises must also be included; otherwise more than a quarter of Britain’s pubs would not benefit equally.