The UK government will exempt glass drink containers supplied directly to pubs, restaurants and licensed hospitality venues from packaging extended producer responsibility (pEPR) fees, Defra has announced. The change is expected to apply to fees calculated from April 2027, the start of the third year of the pEPR regime, which runs until March 2028.
According to Defra, the decision responds to industry concerns that certain businesses were effectively facing double charges on their recycling obligations, because they cover both commercial waste service costs and pEPR fees. The government said it would also consult businesses 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. Defra stated that this could reduce fees for the most recyclable packaging by up to 40% per year.
Fee review and further consultation
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, and a review of fee structures is already under way. Defra said the government remained committed to the principle that producers should contribute towards the costs of managing packaging waste, noting that £1.4bn had already been provided to councils through the scheme to improve recycling services. It added that pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
Alongside the exemption, 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 is scheduled for early next year, when the pEPR administrator, PackUK, will seek feedback on the fees placed on manufacturers covering the costs of treating packaging waste, with the aim of encouraging easier-to-recycle materials.
The announcement also referenced market pressure on glass production. Defra noted two investigations launched by the independent Trade Remedies Authority into imported glass containers from China and Turkey, and said a provisional anti-dumping measure on Chinese imports was imposed on 9 September following a recommendation by the authority. Both investigations remain ongoing.
Industry reaction
Dame Angela Eagle, the UK environment secretary, said the decision had been taken in response to calls from the packaging and hospitality sectors over charges imposed on recyclable products. She said the government was committed to supporting British business, and that the changes back the glass industry and pubs while making sure everyone does their bit to reduce waste.
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. Nick Kirk, the group's executive director, said the government had listened to concerns raised by glass manufacturers and that the planned update to the glass material value, the proposed acceleration of modulation factors and a commitment to review future fee structures all moved the system in a fairer direction. He added that the group welcomed measures addressing glass packaging supplied to hospitality, while noting it needed to understand the full impact of the proposed exemption.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a “significant first step” towards ensuring 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 and that a successful EPR scheme can increase recycling rates and reduce waste, but that 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 and 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 from the change.
Questions remained over drinks in glass containers supplied indirectly through wholesalers, with parts of the industry expected to keep campaigning on how those are treated under the scheme.