The UK government plans to exempt glass drink containers supplied 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 pEPR regime began invoicing companies last year to cover the costs of managing recycling and treatment of waste materials supplied to businesses and consumers, and a review of fee structures was already under way.
Direct supply and fee review
The department said the exemption would apply to direct supplies to hospitality groups. It acknowledged that further campaigning was expected over how drinks in glass containers supplied indirectly through wholesalers are treated under pEPR. The government said it would also consult businesses on packaging waste fees so that easy-to-recycle packaging such as glass and paper costs less, while hard-to-recycle packaging such as some plastics costs more. According to Defra, this could reduce fees for the most recyclable packaging by up to 40% per year.
Defra said the pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses, while maintaining the principle that producers should contribute to packaging waste management. It said £1.4bn had already been provided to councils through the scheme to improve recycling services.
Reuse evidence and market engagement
The department said it would launch a call for evidence in December on mechanisms to support scaled-up commitments for reusing packaging as a way of curbing waste and plastics use. A separate market engagement early next year will see PackUK, the pEPR administrator, seek 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.
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 a recommendation by the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September, and both investigations remain ongoing.
Industry response
Dame Angela Eagle, the UK environment secretary, said the decision was taken in response to calls from the packaging and hospitality sectors over charges on recyclable products. She said the government was committed to supporting British business and that the changes backed the glass industry and pubs while ensuring efforts to reduce waste.
British Glass said the announcement was a welcome policy change, but noted 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 use of the material for packaging. He said the proposed changes began to address unintended consequences of pEPR and better recognise glass’s environmental benefits, adding that a planned update to the glass material value, proposed acceleration of modulation factors and a commitment to review future fee structures moved the system in a fairer direction.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a significant first step to ensure drink containers used by the hospitality sector were not double-charged. He said soft drinks businesses take responsibility for recycling packaging seriously and that a successful EPR scheme can increase recycling rates and reduce waste, but unfair allocation of costs undermines 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 stance on glass charges would be a relief to pubs. She said the direction of travel would be warmly welcomed, but the long-term cumulative impact of UK packaging policies must be considered. She said the measures could reduce cost pressures on Britain’s brewers by tens of millions, but that the 12,000 publicans running leased and tenanted pubs as SMEs must also be included, otherwise more than a quarter of Britain’s pubs would not equally benefit.