The UK government will exempt glass drink containers supplied directly to pubs, restaurants and licensed hospitality venues from extended producer responsibility for packaging (pEPR) fees, Defra has announced.
The exemption is expected to apply to fees calculated from April 2027 and covers 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 by covering both commercial waste service costs and pEPR fees.
Why the change was made
The pEPR regime began invoicing companies last year to cover the costs of managing the recycling and treatment of waste materials supplied to businesses and consumers. A review of fee structures was already under way, and the government said it had taken the decision to address concerns raised by the British glass packaging industry directly. It added that additional market engagement on the management of the regime would follow.
Defra said businesses would also be consulted on the fees they pay for packaging waste, so that easy-to-recycle packaging such as glass and paper costs less and hard-to-recycle packaging such as some plastics costs more. According to the department, this could reduce fees for the most recyclable packaging by up to 40% per year.
The announcement was understood to recognise concerns that some hospitality groups were at risk of a "double charge" when funding collection and disposal services. Further campaigning was expected by parts of the industry over how drinks in glass containers supplied indirectly through wholesalers are affected by the regime.
Defra said the exemption tied into attempts to ensure pEPR could support and incentivise more sustainable business and consumer practices without undermining the overall case for introducing EPR. "The Government remains committed to the principle that producers should contribute towards the costs of managing packaging waste and help reduce it, with £1.4bn already provided to councils through the scheme to improve recycling services," it said, adding that pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
Consultations and trade measures
Defra said it was committed to launching a call for evidence in December on mechanisms to support scaled-up commitments for reusing packaging as a means of curbing waste and plastics use. A separate market engagement scheduled for early next year will see the pEPR administrator, PackUK, asking for feedback on the fees placed on manufacturers in covering the costs of treating packaging waste, with the aim of encouraging the use of more easy-to-recycle materials.
The department linked the announcement to attempts to address market pressures on glass production and packaging, including two investigations launched by the independent Trade Remedies Authority into imported glass containers sourced from China and Turkey. Following a recommendation from the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September; both investigations remain ongoing.
Industry reaction
Environment secretary Dame Angela Eagle said the decision had been taken in response to calls from the packaging and hospitality sectors on charges imposed on recyclable products. "This government is committed to supporting British business and these changes back the glass industry and pubs while making sure we're all doing our bit to reduce waste," she said.
British Glass said the announcement was a welcome change in policy 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. Executive director Nick Kirk said the proposed changes begin to address some unintended consequences of pEPR and better recognise the environmental benefits of glass, adding that a planned update to the glass material value, the proposed acceleration of modulation factors and a commitment to review future fee structures "all move the system in a fairer direction". He also welcomed measures addressing glass packaging supplied to the hospitality sector, while saying the full impact of the proposed exemption still needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a "significant first step" to ensure drink containers used by hospitality were not facing double charging. He said soft drinks businesses take responsibility for recycling the packaging they place on the market seriously and that a successful EPR scheme can increase recycling rates and reduce waste, but an unfair allocation of costs undermines its effectiveness. He added that the association looked 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 as a relief to pubs, but that the long-term cumulative impact of UK packaging policies had to be considered. She said the measures could reduce cost pressures on Britain's brewers by tens of millions, and that it was vital the 12,000 publicans running leased and tenanted pubs as SMEs are included, otherwise over a quarter of Britain's pubs would not equally benefit.