The UK Government has announced 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 change expected to apply to fees calculated from April 2027.
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 exemption is intended for glass containers sold directly from companies to hospitality groups. It does not, on the announced terms, cover glass that reaches hospitality venues indirectly through wholesalers; that route remains a focus for further industry campaigning, according to the concerns set out around the announcement.
The pEPR regime began invoicing companies last year to cover the cost of managing recycling and treatment of waste materials supplied to businesses and consumers. A review of fee structures was already under way. Defra said it would also hold additional market engagement on how the regime is managed.
Defra said businesses would be consulted on the fees they pay for packaging waste, with the aim that easy-to-recycle materials such as glass and paper cost less, while hard-to-recycle packaging such as some plastics costs more. The department said this could reduce fees for the most recyclable packaging by up to 40% a year.
The department linked the exemption to efforts to ensure pEPR supports more sustainable business and consumer practices without undermining the case for producer responsibility. It said the Government remained committed to the principle that producers should contribute to packaging waste management costs and help reduce waste, adding that £1.4bn had already been provided to councils through the scheme to improve recycling services. Defra also said pEPR must operate fairly and not disproportionately affect particular industries or hospitality businesses.
Further consultations are planned. 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 involve PackUK, the pEPR administrator, seeking feedback on the fees placed on manufacturers for treating packaging waste and on how to encourage more recyclable materials.
Defra framed the announcement as part of efforts to address market pressures on glass production and packaging. It cited two investigations by the independent Trade Remedies Authority into imported glass containers from China and Turkey. Following a recommendation from the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September, and both investigations remain ongoing, the Government said.
Dame Angela Eagle, the UK environment secretary, 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 supporting waste reduction.
British Glass welcomed the policy change but noted that 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 the material’s use in packaging. 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 moves toward a fairer system.
Kirk also welcomed measures covering glass packaging supplied to hospitality, while saying the full impact of the proposed exemption needed to be understood. He said it was encouraging that the Government recognised hospitality businesses’ challenges and was taking steps to avoid unnecessary costs, and he welcomed market engagement on the fee methodology and potential support for reuse.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a significant first step in preventing double-charging for drink containers used by hospitality. He said soft drinks businesses take responsibility for recycling packaging, and that a successful EPR scheme can raise recycling rates and reduce waste, but unfair cost allocation 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 was welcome but the long-term cumulative impact of UK packaging policies needed consideration if the beer and pub sector was to prosper in every postcode. She said the measures could reduce cost pressures on brewers by tens of millions, but argued that 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.