The UK government has said it will exempt glass drink containers supplied to pubs, restaurants and licensed hospitality venues from extended producer responsibility for packaging (pEPR) fees, Defra has announced.
Defra said the decision responded to industry concerns that some businesses were effectively facing double charges on their recycling obligations, because they cover both commercial waste service costs and pEPR fees. The changes were expected to apply to fees calculated from April 2027 for glass containers sold directly by companies to hospitality groups.
Timing and scope
The pEPR regime began invoicing companies last year to fund the recycling and treatment of packaging waste supplied to businesses and consumers, and a review of fee structures was already under way. British Glass said the reforms would not take effect until the start of the regime's third year, running from April 2027 to March 2028. Further campaigning was expected over glass containers supplied indirectly through wholesalers, a point echoed by the British Soft Drinks Association, which said a solution for indirect supply was still needed.
Fee review and reuse consultations
Defra said businesses would also be consulted 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. The department said this could cut fees for the most recyclable packaging by up to 40% per year, and that £1.4bn had already been provided to councils through the scheme to improve recycling services.
A call for evidence is due in December on mechanisms to support scaled-up commitments to reuse packaging and curb 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, with the aim of encouraging easier-to-recycle materials.
Trade remedies
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 the authority's recommendation, a provisional anti-dumping measure on Chinese imports was imposed on 9 September; both investigations remain ongoing.
Industry response
Environment secretary Dame Angela Eagle said the government was committed to supporting British business, adding that the changes back the glass industry and pubs while making sure everyone does their bit to reduce waste.
Nick Kirk, executive director of British Glass, said the government had listened to manufacturers' concerns and that the proposals began to address unintended consequences of pEPR. He cited a planned update to the glass material value, an acceleration of modulation factors and a commitment to review future fee structures as steps toward a fairer system, and welcomed the market engagement on fee methodology and reuse.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a "significant first step" against double charging. He said unfair allocation of costs undermines the effectiveness of EPR, and that the industry 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 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 benefit equally.