The UK government has announced that glass drink containers supplied to pubs, restaurants and licensed hospitality venues will be exempt from extended producer responsibility for packaging (pEPR) fees. Defra said the exemption is intended to prevent certain hospitality businesses from effectively paying twice for recycling and waste services.
The change is 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 cost of managing recycling and treatment of packaging waste supplied to businesses and consumers. A review of fee structures was already under way.
Double-charging concerns
Defra said the decision responded to concerns raised by the British glass packaging industry. Some hospitality groups were understood to be at risk of a “double charge” because they fund commercial waste collection and disposal services while also facing pEPR fees. The government said it would also examine further market engagement on how the pEPR regime is managed.
Under the announced approach, businesses will be consulted on the fees they pay for packaging waste so that easy-to-recycle materials such as glass and paper cost less, while harder-to-recycle packaging including some plastics costs more. Defra said this could reduce fees for the most recyclable packaging by up to 40% a year.
The government said the exemption was consistent with the principle that producers should contribute to the cost of managing packaging waste. It noted that £1.4bn had already been provided to councils through the scheme to improve recycling services, while adding that pEPR must operate fairly and not disproportionately affect particular industries or hospitality businesses.
Consultations and trade measures
Defra plans to launch a call for evidence in December on mechanisms to support scaled-up commitments for reusing packaging and reducing waste and plastics use. Early next year, the pEPR administrator PackUK will hold a separate market engagement exercise seeking feedback on the fees placed on manufacturers to cover packaging waste treatment costs. The aim is to understand how to encourage greater use of easy-to-recycle materials.
The department also linked the announcement to market pressures on glass production and packaging. Two investigations by the independent Trade Remedies Authority concern 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 responded to calls from the packaging and hospitality sectors over charges on recyclable products. She said the changes supported the glass industry and pubs while maintaining efforts to reduce waste.
Industry reaction
British Glass welcomed the policy change but noted that the reforms would not take effect until 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 about appearing to penalise the material’s use in packaging. He welcomed the planned update to the glass material value, the proposed acceleration of modulation factors and a commitment to review future fee structures.
Kirk also welcomed measures covering glass packaging supplied to hospitality, though he said the full impact of the proposed exemption still needed to be understood. He supported the planned market engagement on future fee methodology and potential reuse support.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a “significant first step” towards ensuring hospitality drink containers are not double-charged. He said a successful EPR scheme could raise recycling rates and reduce waste, but unfair cost allocation undermined its effectiveness. He looked forward to working with Defra on a solution for indirect supply based on the ratio-based approach announced.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the direction on glass charges would be a relief to pubs. She said the measures could reduce cost pressures on brewers by tens of millions, but argued that 12,000 publicans running leased and tenanted pubs as SMEs must also be included, otherwise more than a quarter of British pubs would not benefit equally.