Glass drink containers supplied directly to pubs, restaurants and licensed hospitality venues will be exempt from extended producer responsibility for packaging (pEPR) fees from next year, Defra has announced.
The department said the decision responded to industry concerns that some businesses were effectively facing double charges on their recycling obligations, because they covered both commercial waste service costs and pEPR fees. The exemption is expected to apply to fees calculated from April 2027 for glass containers sold directly from companies to hospitality groups.
The pEPR regime began invoicing companies last year to cover the cost of managing the recycling and treatment of waste materials supplied to businesses and consumers, and a review of fee structures was already under way. The Government said it would also examine further market engagement on how the regime is managed.
Relief arrives in the scheme's third year
British Glass said the policy change was welcome but noted 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.
Nick Kirk, executive director of the group, 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 begin to address some unintended consequences of pEPR and better recognise the environmental benefits of glass, pointing to a planned update to the glass material value, a proposed acceleration of modulation factors and a commitment to review future fee structures.
Kirk also welcomed measures covering glass packaging supplied to the hospitality sector, though he said the full impact of the proposed exemption still needed to be understood. He added that a planned market engagement exercise on the future fee methodology, including potential support for reuse initiatives, was encouraging.
Fee modulation and upcoming consultations
Defra said businesses would 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 formats such as some plastics cost more. According to the department, this could reduce fees for the most recyclable packaging by up to 40% per year.
A call for evidence is due 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 scheduled for 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 understanding how to encourage greater use of easy-to-recycle materials.
Trade pressures and industry reaction
Defra framed the announcement as an attempt 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. The Government said a provisional anti-dumping measure on Chinese imports was imposed on 9 September following a recommendation from the authority, and that both investigations remain ongoing.
The department said the exemption was intended to ensure pEPR supports more sustainable business and consumer practices without undermining the case for the regime. It said the Government remained 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 some industries and hospitality businesses.
Environment secretary Dame Angela Eagle said the decision was taken in response to calls from the packaging and hospitality sectors about charges imposed on recyclable products, adding that the changes back the glass industry and pubs while supporting waste reduction.
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 their recycling responsibilities seriously and that a successful EPR scheme can raise recycling rates and cut waste, but that unfair allocation of costs undermines its effectiveness, adding that the association looks forward to working with Defra on a solution for indirect supply building on the ratio-based approach announced.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the direction of travel would be warmly welcomed by pubs but that the long-term cumulative impact of UK packaging policies must be considered. She said the measures could reduce cost pressures on Britain's brewers by tens of millions, while stressing 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.
Concerns remain over drinks in glass containers supplied indirectly through wholesalers, where further campaigning is expected.