The UK government has announced that glass drink containers supplied directly to pubs, restaurants and licensed hospitality venues will be exempt from packaging extended producer responsibility (pEPR) fees. Defra said the change would 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 cost of managing the recycling and treatment of packaging supplied to businesses and consumers. Defra said the exemption responded to industry concerns that some businesses were effectively facing double charges by paying both commercial waste service costs and pEPR fees.
Defra said businesses would also be consulted on the fees they pay for packaging waste, with the aim of making easy-to-recycle materials such as glass and paper cheaper and harder-to-recycle packaging such as some plastics more expensive. The department said this could reduce fees for the most recyclable packaging by up to 40% a year.
The decision was understood to recognise concerns that some hospitality groups could face a double charge when funding collection and disposal services. Further industry campaigning was expected over how drinks in glass containers supplied indirectly through wholesalers are treated under pEPR.
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 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 must operate fairly and should not disproportionately affect particular industries or hospitality businesses.
Upcoming consultations
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 involve PackUK, the pEPR administrator, seeking feedback on the fees placed on manufacturers to cover packaging waste treatment costs and on how to encourage easier-to-recycle materials.
Trade measures
The announcement also came 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. Following a recommendation by the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September; both investigations remain ongoing.
Industry response
Environment secretary Dame Angela Eagle said the decision responded to calls from the packaging and hospitality sectors over charges on recyclable products. She said the government was supporting British business and backing the glass industry and pubs while seeking to reduce waste.
British Glass said the policy change was welcome but noted that the reforms would not take effect until the third year of the pEPR regime, running from April 2027 to March 2028. Executive director Nick Kirk said the government had listened to glass manufacturers’ concerns about appearing to penalise the material. He said proposed changes to the glass material value, an acceleration of modulation factors and a commitment to review future fee structures moved the system in a fairer direction. He also welcomed measures for glass packaging supplied to hospitality, while saying the full impact of the exemption needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a significant first step in preventing double charging for drink containers used by hospitality. He said soft drinks businesses take responsibility for recycling the packaging they place on the market, and that a successful EPR scheme can raise recycling rates and reduce waste, but unfair cost allocation undermines its effectiveness. He said the association looked forward to working with Defra on a solution for indirect supply based on the announced ratio-based approach.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the direction on glass charges would be a relief to pubs. She said the long-term cumulative impact of UK packaging policies must be considered if the beer and pub sector is to prosper in every postcode. She said the measures could reduce cost pressures on brewers by tens of millions, but that 12,000 publicans running leased and tenanted pubs as SMEs must also be included, or more than a quarter of Britain’s pubs would not benefit equally.