The UK government will exempt glass drink containers supplied to pubs, restaurants and licensed hospitality venues from packaging extended producer responsibility (pEPR) fees, Defra has announced. The measure is intended to address industry concerns that some businesses were effectively being charged twice for their recycling obligations.
According to Defra, the exemption responds to worries that hospitality operators covering both commercial waste service costs and pEPR fees faced a “double charge”. The changes are expected to apply to fees calculated from April 2027 for glass containers sold directly from companies to hospitality groups.
Background to the fee relief
The pEPR regime began invoicing companies last year to cover the cost of managing the recycling and treatment of packaging waste 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 by the British glass packaging industry directly. It added that it would also hold further market engagement on how the pEPR regime is managed.
Defra said businesses would be consulted on the fees they pay for packaging waste, so that easy-to-recycle materials such as glass and paper cost less while 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.
MRW understands the new measures recognise concerns that some hospitality groups risked a “double charge” when funding collection and disposal services, and that further campaigning was expected over how drinks in glass containers indirectly supplied through wholesalers are affected.
Defra said the exemption was intended to ensure pEPR supports more sustainable business and consumer practices without undermining the case for extended producer responsibility. “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 stated, adding that pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
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 way to curb waste and plastics use. A separate market engagement early next year will see pEPR administrator PackUK seek feedback on the fees placed on manufacturers to cover packaging waste treatment costs, with the aim of encouraging more easily recyclable materials.
The announcement also came alongside government efforts to address pressure 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; both investigations remain ongoing.
Environment secretary Dame Angela Eagle said the decision followed calls from the packaging and hospitality sectors over charges 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, running from April 2027 to March 2028. Executive director Nick Kirk said the government had listened to glass manufacturers' concerns. He said the proposed changes begin to address some unintended consequences of pEPR and better recognise the environmental benefits of glass, citing the planned update to the glass material value, the proposed acceleration of modulation factors and the commitment to review future fee structures. He also welcomed moves on glass packaging supplied to hospitality, while noting the need to understand the full impact of the exemption.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a “significant first step” to prevent double-charging for drink containers used by hospitality. He said soft drinks businesses take recycling responsibility seriously and that a successful EPR scheme can raise recycling rates and cut waste, but unfair cost allocation undermines its effectiveness. He added 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 stance would bring relief to pubs. She said the direction of travel would be warmly welcomed, but the long-term cumulative impact of UK packaging policies must be considered. The measures could reduce cost pressures on Britain's brewers by tens of millions, she said, adding it was vital that the 12,000 publicans running leased and tenanted pubs as SMEs were included, otherwise over a quarter of Britain's pubs would not equally benefit.