Defra has announced that glass drink containers supplied to pubs, restaurants and licensed hospitality venues will be exempt from extended producer responsibility for packaging (pEPR) fees. The exemption is expected to apply to fees calculated from April 2027 for glass containers sold directly by companies to hospitality groups.
The department said the decision responds to industry concerns that some businesses faced effective double charges on recycling obligations, paying both commercial waste service costs and pEPR fees. The pEPR regime began invoicing companies last year to cover the costs of managing recycling and treatment of waste materials supplied to businesses and consumers.
Fee review and recyclability
Defra said a review of fee structures was already under way and that it would consult businesses on the fees they pay for packaging waste. The aim is for easy-to-recycle packaging such as glass and paper to cost less, and hard-to-recycle packaging such as some plastics to cost more. Defra said this could reduce fees for the most recyclable packaging by up to 40% per year.
The government said the exemption was intended to ensure pEPR supports more sustainable business and consumer practices without undermining the case for extended producer responsibility. It added that producers should contribute to packaging waste costs, with £1.4bn already provided to councils through the scheme to improve recycling services, while pEPR must operate fairly and not disproportionately affect some industries and hospitality businesses.
Reuse evidence and market engagement
Defra said it would launch 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 is scheduled for early next year, when the pEPR administrator PackUK will seek feedback on fees placed on manufacturers to cover packaging waste treatment. The exercise is intended to examine how to encourage greater use of easy-to-recycle materials.
Trade remedies and industry response
The announcement also came alongside government efforts to address market pressure on glass production and packaging. The independent Trade Remedies Authority is investigating imported glass containers from China and Turkey. Following a recommendation by the authority, a provisional anti-dumping measure on Chinese imports was imposed on 9 September, and both investigations remain ongoing.
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 backing the glass industry and pubs while reducing waste.
British Glass welcomed the policy change but noted that 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 unintended consequences of pEPR and better recognised the environmental benefits of glass. He also welcomed measures covering glass packaging supplied to hospitality, while saying the full impact of the exemption needed to be understood.
Andy Bagnall, director general of the British Soft Drinks Association, described the announcement as a significant first step to prevent double charging for drink containers used by hospitality. He said a successful EPR scheme could increase recycling rates and reduce waste, but unfair cost allocation undermined its effectiveness, and the industry 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 on glass charges would be a relief to pubs. She said the measures could reduce cost pressures on brewers by tens of millions, but 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 benefit equally.