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 change is 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 because they covered both commercial waste service costs and pEPR fees. The pEPR regime began invoicing companies in 2025 to fund the recycling and treatment of waste materials supplied to businesses and consumers, and a review of fee structures was already under way.
Fee changes and consultations
Defra said businesses would also be consulted on the fees they pay for packaging waste, so that easy-to-recycle packaging such as glass and paper costs 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% per year.
The government said it remained committed to the principle that producers should contribute towards the costs of managing packaging waste and help reduce it, with £1.4bn already provided to councils through the scheme to improve recycling services. It added that pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
Defra also said it was committed to launching 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 early next year will see pEPR administrator PackUK ask for feedback on the fees placed on manufacturers to cover packaging waste treatment, with the aim of encouraging more easily recyclable materials.
Trade pressure and industry response
Defra said the announcement sought to address market pressures on glass production and packaging, including 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 recommendation by the authority; both investigations remain ongoing.
British Glass said the policy change was welcome, 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 concerns raised by glass manufacturers about appearing to penalise the material. He said the planned update to the glass material value, the proposed acceleration of modulation factors and the commitment to review future fee structures moved the system in a fairer direction. Kirk also welcomed measures for glass packaging supplied to hospitality, while saying the full impact of the proposed exemption 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 were not double-charged. He said soft drinks businesses took responsibility for recycling packaging, and that a successful EPR scheme could increase recycling rates and reduce waste, but unfair allocation of costs undermined its effectiveness. 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 direction on glass charges would be a relief to pubs. She said the long-term cumulative impact of the UK’s packaging policies must be considered, and that the measures could reduce cost pressures on brewers by tens of millions. McClarkin added that the 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.
Dame Angela Eagle, the UK environment secretary, said the decision had been taken in response to calls from the packaging and hospitality sectors about charges imposed 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.