The fibre-based packaging community has raised concerns about who will cover costs as and when specific packaging formats are subsidised, after the UK Government announced a series of measures intended to reduce the burden of Extended Producer Responsibility (pEPR) fees on restaurants, pubs, and other hospitality businesses disposing of glass packaging and waste.
In an announcement on 11 November, the Department for Environment, Food & Rural Affairs (Defra) confirmed that glass drinks containers being sold directly from producers to pubs, restaurants, and other licensed hospitality venues will no longer be liable for pEPR fees from April 2027. The UK Government has also acted to remove the issue of double charging for recycling of the same packaging. This move has been costed out as saving businesses up to 6p per beer bottle and 10p per wine bottle. This equates to £870 a year for a pub selling 10,000 beer bottles and 3,700 wine bottles, it is claimed.
The measures have been made explicitly as part of the Government’s commitment to ‘back the British glass industry.’ Environment Secretary Dame Angela Eagle commented, “We’ve listened to industry and hospitality businesses and are stepping in to reduce the fees for the most recyclable packaging, including tackling double charging on glass bought by pubs. 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.”
However, the Alliance for Fibre-Based Packaging has spoken out in response to the announcement and stated, “We are disappointed Defra has today shifted the goal posts for manufacturers of fibre-based packaging, tearing up the certainty businesses have relied on. Today’s announcement that the Government is looking to the wider packaging sector to pay higher pEPR fees sooner to subsidise the glass sector undermines the Government’s commitments to re-industrialisation and creating a circular economy, and risks an increase in the use of cheaper, imported non-recyclable packaging.”
Separately, the independent Trade Remedies Authority is undertaking two investigations on imports of glass containers. This includes a dumping investigation on Chinese-origin imports and a subsidy investigation on Turkish-origin imports. Both investigations remain ongoing but following a recommendation made by the Trade Remedies Authority, a provisional anti-dumping measure was imposed on 9 September on Chinese imports.
The changes will also likely have an impact on the flexible packaging supply chain, as the UK Government prioritises reducing pEPR fees associated with glass and paper and making the costs higher for some plastics.
This will see businesses consulted on the fees they pay for packaging waste, with the aim of making easy-to-recycle packaging like glass and paper cost less and hard-to-recycle packaging such as some plastics costs more. This could help reduce fees for the most recyclable packaging by up to 40% per year, according to the Defra. In early 2027, PackUK will also launch a call-for-evidence on fees manufacturers pay for packaging waste to ensure easy-to-recycle packaging costs less.
Defra stated, “EPR was introduced to incentivise businesses to switch to more sustainable packaging, as part of the government’s drive to reduce waste. The changes announced today will make it fairer and better targeted.”
The government body went on, “The Government remains committed to the principle that producers should contribute towards the costs of managing packaging waste and help reduce it, with £1.4 billion already provided to councils through the scheme to improve recycling services. At the same time, it recognised that pEPR must operate fairly and not disproportionately impact some industries and hospitality businesses.”
But, according to the Alliance for Fibre-Based Packaging, “A 28-day consultation to get views on a near 70% increase in fees for our members is inadequate. This decision raises fundamental questions about the fairness of Defra’s approach. We have engaged policy makers in good-faith and call on the Government to return to the table and work with the whole industry on a fair, evidence-based way forward.”
