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 from companies to hospitality groups.
Defra said the decision responded to industry concerns that certain businesses were effectively facing double charges on their recycling obligations, covering both commercial waste service costs and pEPR fees.
Background to the exemption
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 decided to address concerns raised directly by the British glass packaging industry. It added that it would look at additional market engagement around how the pEPR regime is managed.
Defra said: “Businesses will also be consulted on fees they pay for packaging waste, so that easy-to-recycle packaging like glass and paper cost less and hard-to-recycle packaging such as some plastics costs more. This could help reduce fees for the most recyclable packaging by up to 40% per year.”
The department said the announcement was intended to ensure the pEPR supports and incentivises more sustainable business and consumer practices without undermining the overall case for introducing EPR. It said £1.4bn had already been provided to councils through the scheme to improve recycling services, and that the regime must operate fairly and not disproportionately affect some industries and hospitality businesses.
Further consultations and trade measures
Defra said it would launch 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 early next year will see the pEPR administrator, PackUK, seek feedback on the fees placed on manufacturers covering the costs of treating packaging waste, with the aim of encouraging more easily recyclable materials.
The announcement also comes alongside 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; 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 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.
Industry reaction
British Glass said the announcement was a welcome policy change 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. Executive director Nick Kirk said the Government had listened to concerns raised by glass manufacturers to avoid appearing to penalise use of the material for packaging.
“The proposed changes begin to address some of the unintended consequences of pEPR and better recognise the environmental benefits of glass,” he said. “The planned update to the glass material value, the proposed acceleration of modulation factors and the commitment to review future fee structures all move the system in a fairer direction.” He added that the group needed to understand the full impact of the proposed exemption but welcomed steps to recognise the challenges facing hospitality businesses.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a “significant first step” to ensure drink containers used by the hospitality sector were not double-charged. He said soft drinks businesses took their recycling responsibilities seriously and that a successful EPR scheme could raise recycling rates and reduce waste, but unfair cost allocation 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. “The direction of travel will be warmly welcomed, but it is essential that the long-term cumulative impact of the UK’s packaging policies are taken into consideration,” she said, adding that the measures could reduce cost pressures on Britain’s brewers by tens of millions. She said it was vital that the 12,000 publicans running leased and tenanted pubs as SMEs were also included, otherwise more than a quarter of Britain’s pubs would not equally benefit.