The UK government will exempt glass drink containers supplied to pubs, restaurants and licensed hospitality venues from extended producer responsibility for packaging (pEPR) fees from next year, Defra has announced.
The department said the decision responded to industry concerns that some businesses were effectively facing double charges on their recycling obligations, because they cover both commercial waste service costs and pEPR fees. The change is expected to apply to fees calculated from April 2027 for glass containers sold directly by companies to hospitality groups.
The pEPR regime began invoicing companies last year to cover the cost of managing the recycling and treatment of packaging waste supplied to businesses and consumers. A review of fee structures was already under way, and the government said it would also carry out further market engagement on how the regime is managed.
Fee modulation and the 40% signal
Defra said businesses would also be consulted on the fees they pay for packaging waste, so that easy-to-recycle materials such as glass and paper cost less and hard-to-recycle packaging such as some plastics costs more. According to the department, this could cut fees for the most recyclable packaging by up to 40% per year.
The government said the exemption was intended to ensure pEPR could support more sustainable business and consumer practices without undermining the case for extended producer responsibility. It 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, while recognising that pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
The announcement was also understood to acknowledge the risk that some hospitality groups faced a "double charge" in funding collection and disposal services. Further campaigning was expected from parts of the industry over glass containers supplied indirectly through wholesalers.
Consultations and trade measures
Defra said it would launch a call for evidence in December on mechanisms to support scaled-up commitments to reuse packaging as a means of curbing 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 treatment costs, with the aim of encouraging easier-to-recycle materials.
The department framed the announcement as part of efforts to address market pressure on glass production and packaging. That includes two investigations by the independent Trade Remedies Authority into imported glass containers from China and Turkey; a provisional anti-dumping measure on Chinese imports was imposed on 9 September following a TRA recommendation, and both investigations remain ongoing.
Industry reaction
Environment secretary Dame Angela Eagle said the decision was taken in response to calls from the packaging and hospitality sectors over charges on recyclable products. "This government is committed to supporting British business and these changes back the glass industry and pubs while making sure we're all doing our bit to reduce waste," she said.
British Glass said the announcement was a welcome policy change, but noted the reforms would not take effect until the third year of the pEPR regime, running from April 2027 to March 2028. Executive director Nick Kirk said the proposed changes began to address some unintended consequences of pEPR and better recognised the environmental benefits of glass, pointing to a planned update to the glass material value, an acceleration of modulation factors and a commitment to review future fee structures. He also welcomed measures covering glass packaging supplied to hospitality, while saying the full impact of the exemption still needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, called the announcement a "significant first step" against double charging for hospitality drink containers. He said soft drinks businesses took responsibility for recycling the packaging they place on the market seriously and that a successful EPR scheme could raise recycling rates and reduce waste, but that unfair allocation of costs undermined its effectiveness. He added that the association looked forward to working 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 of travel would be warmly welcomed as a relief to pubs, but argued that 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, 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.