British Glass has welcomed UK government plans to change packaging Extended Producer Responsibility (pEPR) fees, including an exemption for certain glass packaging supplied directly to licensed hospitality venues.
The proposed measures include an update to the material value assigned to glass packaging. They also include plans to introduce higher modulation factors for less recyclable packaging materials from the third year of pEPR. In addition, the government will issue calls for evidence on fee modulation and reuse.
Weight-based fees under scrutiny
British Glass said glass had faced a disproportionate share of pEPR costs because fees are calculated by weight rather than by the number of packaging units placed on the market. The organisation said this had increased pressure on UK glass manufacturers from food and drink companies that purchase packaging by units, not weight, prompting material switching from glass to lighter packaging materials.
According to British Glass, the fee design has consequences beyond the cost borne by glassmakers. Food and drink companies buying packaging by unit have an incentive to move to lighter materials when fees are based on weight, the organisation said. It added that this pressure comes as UK glass manufacturers are already navigating high energy costs and international competition.
Nick Kirk, executive director of British Glass, said the government had listened and recognised the importance of maintaining a strong domestic glass industry. He said the proposed changes begin to address some of the unintended consequences of pEPR and better recognise the environmental benefits of glass.
Kirk said the planned update to the glass material value, the proposed acceleration of modulation factors and the commitment to review future fee structures all move the system in a fairer direction.
Exemption, timing and industry pressure
He said that while it was important to understand the full impact of the proposed exemption, it was encouraging to see the government recognising the challenges facing hospitality businesses and taking steps to avoid unnecessary costs. British Glass particularly welcomed the forthcoming calls for evidence on modulation and reuse.
British Glass noted that the reforms will not take effect until the scheme's third year, covering April 2027 to March 2028. The organisation said glass manufacturers continue to face pressures from high energy costs, international competition and uncertainty surrounding future packaging policy.
Kirk said the proposals must be the start rather than the end of the process. He added that glass manufacturers are making decisions on investment, production and jobs now.
Sarah Champion, MP for Rotherham, said the government had shown that it means business when it comes to tackling harmful packaging materials and protecting UK glass manufacturing.