British Glass has welcomed 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 package also includes an update to the material value assigned to glass packaging and plans to introduce higher modulation factors for less recyclable packaging materials from the third year of pEPR. The government will additionally issue calls for evidence on fee modulation and reuse.
The hospitality exemption is limited to certain glass packaging supplied directly to licensed hospitality venues, rather than to glass packaging more broadly. British Glass said the full impact of the exemption still needs to be understood, while welcoming the government's recognition of the cost challenges facing hospitality businesses.
Weight-based fees under scrutiny
British Glass said glass has 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. In practice, a weight-based fee charges more for heavier packaging, while buyers purchase packaging by unit.
The organisation said this has increased pressure on UK glass manufacturers from food and drink companies that purchase packaging by units rather than weight, prompting material switching from glass to lighter packaging materials.
Trade body says government has listened
Nick Kirk, executive director of British Glass, said the government has listened and recognises 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. 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, he added.
Kirk 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. He particularly welcomed the forthcoming calls for evidence on modulation and reuse.
Reforms start in the scheme's third year
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 announcement must be the start rather than the end of the process, adding 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.