Defra has confirmed that glass drink containers supplied directly to pubs, restaurants and licensed hospitality venues will be exempt from packaging extended producer responsibility (pEPR) fees, with the relief expected to apply to fees calculated from April 2027.
The department said the exemption would cover glass containers sold directly from companies to hospitality groups. The pEPR system began invoicing companies last year to fund the recycling and treatment of packaging waste placed on the market. British Glass said the reform would not take effect until the third year of the regime, running from April 2027 to March 2028, and that the full impact of the exemption still needed to be understood.
Double-charge concerns
Defra said the decision responded to industry concerns that some businesses were effectively being charged twice for recycling obligations, through both commercial waste service costs and pEPR fees. The government said the scheme had to operate fairly and should not disproportionately affect particular industries or hospitality businesses.
The government also plans to consult on the fees businesses pay for packaging waste, so that easy-to-recycle materials such as glass and paper cost less and hard-to-recycle materials such as some plastics cost more. Defra said this could reduce fees for the most recyclable packaging by up to 40% per year. It added that £1.4bn had already been provided to councils through the scheme to improve recycling services.
Further consultations
Defra said it would launch a call for evidence 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 to cover packaging waste treatment, with the aim of encouraging more easily recyclable materials.
The announcement was also linked to market pressure on glass production and packaging. The independent Trade Remedies Authority has launched two investigations into imported glass containers from China and Turkey. Following its recommendation, a provisional anti-dumping measure on Chinese imports was imposed on 9 September, and both investigations remain ongoing.
Industry reaction
Environment secretary Dame Angela Eagle said the decision responded to calls from the packaging and hospitality sectors over charges on recyclable products, adding that the changes backed the glass industry and pubs while supporting waste reduction.
Nick Kirk, executive director of British Glass, said the government had listened to glass manufacturers’ concerns about appearing to penalise the material’s use in packaging. He said the proposed changes began to address unintended consequences of pEPR and better recognised glass’s environmental benefits, including a planned update to the glass material value, a proposed acceleration of modulation factors and a commitment to review future fee structures. He welcomed measures for hospitality-supplied glass but said the full impact needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a “significant first step” towards avoiding double-charging for drink containers used by hospitality businesses. He said soft drinks companies took responsibility for recycling the packaging they place on the market, and that a successful EPR scheme could increase recycling rates and reduce waste, but unfair allocation of costs undermined its effectiveness. He said the association looked forward to working with Defra on a solution for indirect supply.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the direction of travel would be welcomed by pubs and could reduce cost pressures on Britain’s brewers by tens of millions. She said the long-term cumulative impact of UK packaging policies must be considered, and that the 12,000 publicans running leased and tenanted pubs as SMEs must be included, otherwise more than a quarter of Britain’s pubs would not benefit equally.