The UK government will exempt glass drink containers supplied directly to pubs, restaurants and licensed hospitality venues from extended producer responsibility for packaging (pEPR) fees, Defra has announced. The change is expected to apply to fees calculated from April 2027 for glass containers sold directly from companies to hospitality groups.
Defra said the decision responded to concerns that some businesses were effectively facing double charges on recycling obligations. Hospitality companies can cover both commercial waste service costs and pEPR fees, and the exemption is intended to remove that overlap for directly supplied glass.
The pEPR regime began invoicing companies last year to cover the cost of managing recycling and treatment of packaging waste supplied to businesses and consumers. A review of fee structures was already under way when the government decided to address concerns raised by the British glass packaging industry. Defra said it would also hold further market engagement on management of the regime.
Under planned fee reforms, businesses will be consulted on charges 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. Defra said this could reduce fees for the most recyclable packaging by up to 40% per year.
The exemption was also understood to recognise concerns that some hospitality groups risked a double charge when funding collection and disposal services. Further campaigning was expected over drinks in glass containers supplied indirectly through wholesalers.
Defra said the announcement was intended to ensure pEPR supports more sustainable practices without undermining extended producer responsibility. The government said producers should still contribute to managing and reducing packaging waste, with £1.4bn already provided to councils through the scheme to improve recycling services. It also recognised that pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
Consultations and trade pressures
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 ask for feedback on fees placed on manufacturers to cover packaging waste treatment, aiming to encourage more easy-to-recycle materials.
The announcement came amid market pressure on glass production and packaging. The independent Trade Remedies Authority has launched two investigations linked to 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.
UK environment secretary Dame Angela Eagle said the decision responded 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 everyone did their bit to reduce waste.
Industry response
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, from April 2027 to March 2028. Nick Kirk, the group’s executive director, said the government had listened to concerns raised by glass manufacturers and sought to avoid appearing to penalise glass packaging.
Kirk said the proposed changes began to address some unintended consequences of pEPR and better recognised glass’s environmental benefits. He cited a planned update to the glass material value, the proposed acceleration of modulation factors and a commitment to review future fee structures as moves in a fairer direction. He welcomed measures for hospitality glass while saying the full impact still needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a “significant first step” towards ensuring hospitality drink containers did not face double charging. He said soft drinks businesses took responsibility for recycling packaging, and a successful EPR scheme could increase recycling rates and reduce waste, but unfair cost allocation undermined its effectiveness. He looked forward to working with Defra on a solution for indirect supply based on the announced ratio-based approach.
Emma McClarkin, chief executive of the British Beer and Pub Association, said the stance on glass charges would relieve pubs across the country. She said the direction of travel would be warmly welcomed, but the long-term cumulative impact of UK packaging policies needed consideration. She said the measures could reduce cost pressures on brewers by tens of millions, but 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.