The UK government has announced that glass drink containers supplied 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 responds to industry concerns that some businesses were effectively facing double charges for recycling obligations. Hospitality groups can cover commercial waste service costs as well as pEPR fees on the glass containers they receive directly. The exemption is intended to remove that overlap for directly supplied containers.
Scope and timing
The exemption covers glass containers sold directly from companies to hospitality groups, according to Defra. It will not take effect until the third year of the pEPR regime, running from April 2027 to March 2028, British Glass noted. The pEPR regime began invoicing companies in 2025 to cover recycling and treatment costs for packaging supplied to businesses and consumers.
Fee review and consultations
Defra said businesses will also be consulted on packaging waste fees so 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 cut fees for the most recyclable packaging by up to 40% per year.
Defra also plans a call for evidence in December on mechanisms to support scaled-up reuse commitments for packaging, aimed at curbing waste and plastics use. A separate market engagement in early 2027 will involve PackUK, the pEPR administrator, seeking feedback on manufacturer fees and how to encourage easier-to-recycle materials.
Hospitality concerns
The government said the exemption is meant to ensure pEPR operates fairly without disproportionately affecting some industries and hospitality businesses. It reiterated that producers should contribute to packaging waste management costs and said £1.4bn had already been provided to councils through the scheme to improve recycling services.
Industry groups welcomed the direction but pointed to remaining issues. British Glass executive director Nick Kirk said the proposed changes begin to address unintended consequences of pEPR and better recognise glass’s environmental benefits. He welcomed measures for hospitality-supplied glass while saying the full impact of the exemption still needs to be understood. Kirk also cited planned updates to the glass material value, proposed acceleration of modulation factors and a commitment to review future fee structures as moves toward a fairer system.
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 take recycling responsibility seriously and that unfair cost allocation undermines EPR, adding that the association looks 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 would relieve pubs, with measures potentially reducing cost pressures on brewers by tens of millions of pounds. She said the long-term cumulative impact of UK packaging policies must be considered and 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.
Trade pressures
The announcement also comes amid market pressure on glass production and packaging. The government cited two investigations by the independent Trade Remedies Authority into imported glass containers from China and Turkey. Following a recommendation, 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 government was supporting British business and the glass industry and pubs while ensuring efforts to reduce waste. The exemption applies to direct hospitality supplies; how glass containers supplied indirectly through wholesalers are treated remains a focus for further industry campaigning.