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 exemption is expected to apply to fees calculated from April 2027 for glass containers sold directly by companies to hospitality groups.
Defra said the decision responded to industry concerns that some businesses were effectively facing double charges on recycling obligations because they covered both commercial waste service costs and pEPR fees. The government said pEPR must operate fairly and not disproportionately affect particular industries or hospitality businesses.
Why the exemption is being introduced
The pEPR regime began invoicing companies last year to cover costs of managing recycling and treatment of waste materials supplied to businesses and consumers. A review of fee structures was already under way. Defra said it had decided to address directly concerns raised by the British glass packaging industry and would also examine additional market engagement around how the regime is managed.
According to Defra, businesses will be consulted on the fees they pay for packaging waste so that easy-to-recycle packaging such as glass and paper costs less, while hard-to-recycle packaging such as some plastics costs more. The department said this could reduce fees for the most recyclable packaging by up to 40% per year.
The announcement also reflects concern that some hospitality groups were at risk of a “double charge” when funding collection and disposal services. Parts of the industry are expected to continue campaigning over how drinks in glass containers supplied indirectly through wholesalers are affected by pEPR.
Defra said the exemption was intended to ensure pEPR supports and incentivises more sustainable business and consumer practices without undermining the overall case for extended producer responsibility. The government said it remained 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.
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 to cover treatment costs, with the aim of understanding how to encourage greater use of easy-to-recycle materials.
The department linked the announcement to efforts to address market pressures on glass production and packaging. It noted 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, and 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 about 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 that the reforms would not take effect until the start of the third year of the pEPR regime, running from April 2027 to March 2028. Nick Kirk, the group’s executive director, said the government had listened to glass manufacturers’ concerns about appearing to penalise the use of glass for packaging.
Kirk said the proposed changes began to address some unintended consequences of pEPR and better recognise the environmental benefits of glass. He cited a planned update to the glass material value, a proposed acceleration of modulation factors and a commitment to review future fee structures as moves in a fairer direction. He also welcomed measures addressing glass packaging supplied to hospitality, while saying the full impact of the proposed exemption still needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a “significant first step” towards ensuring drink containers used by hospitality did not face double-charging. He said soft drinks businesses took their recycling responsibilities seriously and that a successful EPR scheme could increase recycling rates and reduce waste, but unfair allocation of costs undermined its effectiveness. He said 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 direction on glass charges would be a relief to pubs. She said the measures could reduce cost pressures on Britain’s brewers by tens of millions, but argued that the 12,000 publicans running leased and tenanted pubs as SMEs must also be included. Otherwise, she said, more than a quarter of Britain’s pubs would not equally benefit from the change.