The UK government will exempt glass drink containers supplied to pubs, restaurants and licensed hospitality venues from packaging extended producer responsibility (pEPR) fees, Defra has announced. The changes are 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. Those businesses cover commercial waste service costs as well as pEPR fees. The department said pEPR must operate fairly and should not disproportionately affect particular industries or hospitality businesses.
How the charge works
The pEPR regime has been invoicing companies to cover the cost of managing the recycling and treatment of packaging waste supplied to businesses and consumers. Defra said a review of fee structures was already under way and that further market engagement would examine how the regime is managed.
It also plans to consult businesses on packaging waste fees so that easy-to-recycle materials such as glass and paper cost less, while harder-to-recycle packaging, including some plastics, costs more. Defra said this could reduce fees for the most recyclable packaging by up to 40% per year. The government said it remained committed to the principle that producers should contribute to the cost of managing packaging waste, noting that £1.4bn had already been provided to councils through the scheme to improve recycling services.
Defra said it would launch a call for evidence in December on mechanisms to support scaled-up commitments for reusing packaging as a way to curb waste and plastics use. A separate market engagement in early 2027 would see the pEPR administrator PackUK seek feedback on the fees placed on manufacturers to cover treatment costs, with the aim of encouraging easier-to-recycle materials.
Scope and timing
The exemption is limited to glass containers sold directly to hospitality groups. The decision was understood to recognise concerns that some hospitality groups could face a double charge when funding collection and disposal services. Further campaigning was expected over how drinks in glass containers supplied indirectly through wholesalers are affected by pEPR.
British Glass said the policy change was welcome but would not take effect until the start of the third year of the pEPR regime, which runs from April 2027 to March 2028. Nick Kirk, the group’s executive director, said the proposed changes began to address unintended consequences of pEPR and gave greater recognition to glass’s environmental benefits. He pointed to a planned update to the glass material value, a proposed acceleration of modulation factors and a commitment to review future fee structures as steps toward a fairer system.
Kirk also welcomed measures covering glass packaging supplied to hospitality, but said the full impact of the proposed exemption still needed to be understood. He said it was encouraging that the government had recognised challenges facing hospitality businesses and was taking steps to avoid unnecessary costs. He welcomed the planned market engagement on future fee methodology, including possible support for reuse.
Industry response
- Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a significant first step toward preventing double-charging for drink containers used by hospitality. He said soft drinks companies take seriously their responsibility to recycle the packaging they place on the market, and that a successful EPR scheme can raise recycling rates and reduce waste. He added that unfair cost allocation undermines the scheme and that the association would work 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 on glass charges would bring relief to pubs. She said the long-term cumulative impact of UK packaging policies must be considered if the beer and pub sector is to prosper in every post code. She said the measures could reduce cost pressures on Britain’s brewers by tens of millions, but argued that 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 benefit equally.
Wider pressure on glass
Defra said the announcement was also an attempt to address market pressures on glass production and packaging. Two investigations by the independent Trade Remedies Authority concern 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, and both investigations remain ongoing.
Environment Secretary Dame Angela Eagle said the decision responded to calls from the packaging and hospitality sectors about charges on recyclable products. She said the changes supported British business, the glass industry and pubs while ensuring efforts to reduce waste continued.