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 exemption is intended to address industry concerns that some businesses were effectively facing double charges by covering both commercial waste service costs and pEPR fees.
The changes are expected to 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 costs of managing the recycling and treatment of packaging waste supplied to businesses and consumers. A review of fee structures was already under way.
Defra said it had acted directly on concerns raised by the British glass packaging industry and would examine additional market engagement on the pEPR regime. Businesses would be consulted on packaging-waste fees so easy-to-recycle materials such as glass and paper cost less than hard-to-recycle packaging such as some plastics. Defra said this could reduce fees for the most recyclable packaging by up to 40% per year.
The move was understood to recognise concerns that some hospitality groups could face a double charge when funding collection and disposal services while also paying pEPR fees. Further industry campaigning was expected over how glass drinks supplied indirectly through wholesalers are treated under the regime.
Defra said the exemption was part of efforts to ensure pEPR supports more sustainable business and consumer practices without undermining the case for extended producer responsibility. The government said it 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. It also said pEPR must operate fairly and not disproportionately affect particular industries or hospitality businesses.
Consultations on fees and reuse
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 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. The exercise is intended to examine how to encourage greater use of easy-to-recycle materials.
Defra linked the announcement to market pressures 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 by the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September. Both investigations remain ongoing.
Industry reaction
Dame Angela Eagle, the UK environment secretary, said the decision responded to calls from the packaging and hospitality sectors over charges on recyclable products. She said the government was committed to supporting British business and that the changes backed the glass industry and pubs while ensuring efforts to reduce waste.
British Glass said the announcement was a welcome policy change, but noted that the reforms would not take effect until the third year of the pEPR regime, from April 2027 to March 2028. Executive director Nick Kirk said the government had listened to glass manufacturers’ concerns and avoided appearing to penalise the material. He said the proposed changes began to address unintended consequences of pEPR and better recognised glass’s environmental benefits, adding that a planned update to glass material value, faster modulation factors and a review of future fee structures would make the system fairer.
Kirk also welcomed measures covering glass packaging supplied to hospitality, while saying the full impact of the proposed exemption needed to be understood. He welcomed plans for a market engagement exercise on the future fee methodology and potential support for reuse initiatives.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a significant first step to prevent double-charging on drink containers used by hospitality. He said soft drinks businesses took recycling responsibility seriously and a successful EPR scheme could increase recycling and reduce waste, but unfair cost allocation undermined its effectiveness. He looked forward to working with Defra on a solution for indirect supply building on the ratio-based approach announced with the exemption.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the stance on glass charges would relieve pubs across the country. She welcomed the direction of travel but said the long-term cumulative impact of UK packaging policies needed consideration for a prosperous beer and pub sector in every postcode. The measures could reduce cost pressures on Britain’s brewers by tens of millions, she said, but the 12,000 publicans running leased and tenanted pubs as SMEs must be included, otherwise more than a quarter of Britain’s pubs would not equally benefit.