Packaging Extended Producer Responsibility

Emma Hardy Excerpts

Thursday 12th November 2026 Written Statements

[The Minister of State, Department for Environment, Food and Rural Affairs (Emma Hardy)]

Today, I welcome the opportunity to update the House on the Government approach to supporting business—particularly glass manufacturing and hospitality—within the extended producer responsibility for packaging scheme.

This Government recognise the contribution that glass manufacturing and hospitality businesses makes to the British economy, and the Prime Minister’s ongoing commitment to champion UK industry. That support reflects the fact that these industries are a source of pride for many communities and continue to play an important role in supporting jobs, investment and local prosperity across the country.

The Government are already committed to reducing energy costs and creating a level playing field for British glass manufacturers. In April, my colleagues at the Department for Business, Innovation, Science and Trade increased the discount from 60% to 90% under the network charging compensation scheme. This, alongside the British industry supercharger, has exempted eligible glass businesses from certain renewable levies and electricity network charges. The British industrial competitiveness scheme will also cut electricity bills by up to 25% for over 10,000 energy-intensive businesses from April 2027.

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. Following a recommendation made by the TRA, a provisional anti-dumping measure on Chinese imports was imposed on 9 September. Both investigations remain ongoing.

This statement sets out a further package of measures designed by DEFRA to build on this Government’s commitment to the hospitality sector. This Government remain committed to the principle that producers should contribute towards the costs of managing packaging waste. At the same time, we must ensure that PEPR operates fairly and effectively in practice, and that we support businesses who are trying to do the right thing. We are therefore implementing the following measures:

Consultation on greater fee discounts within packaging extended producer responsibility for highly recyclable (“green”) packaging

Under this proposal, from March 2027, we propose to accelerate a discount for green packaging, benefiting over 90% of glass. Indicative estimates, based on current data and analysis, suggest that this change could reduce green-rated material fees by around 30% to 40% in 2027-28 and 2028-29 relative to the current approach. These are estimates and are highly dependent on the levels of packaging placed on the market in those years, and on the local authority costs which the scheme is designed to fund. This measure would help incentivise businesses to use highly recyclable packaging such as glass, and send a positive signal to business to help stabilise demand.

New legislation addressing cases where hospitality businesses pay twice for recycling for the same packaging

The UK Government and the devolved Governments of Scotland, Wales and Northern Ireland have listened carefully to concerns raised by industry regarding the treatment of dual-use packaging under the extended producer responsibility for packaging regulations. We recognise the need to address the issue of PEPR fees applied to packaging that is ultimately disposed of through commercial waste streams. This has been raised by stakeholders across several sectors and across the four nations, and we are committed to ensuring that the regulations operate fairly, proportionately and in line with their intended purpose.

While work continues on a comprehensive solution to this challenge, we are taking a targeted and pragmatic step to introduce an interim measure for dual-use packaging in the hospitality sector.

From April 2027, this will mean that the majority of glass drinks containers supplied directly to licensed hospitality venues will no longer be classified as household packaging, and therefore not subject to PEPR disposal cost fees. This measure demonstrates our commitment to amending and improving PEPR where evidence supports change, while maintaining the wider objectives of the scheme. Analysis indicates that this could result in savings of around 5p per beer bottle and up to 10p per wine bottle, based on the current glass fee. For a pub selling 10,000 beer bottles and 3,700 wine bottles, this could save them up to £870 a year.

Publishing calls for evidence on reusable packaging and the future of modulated PEPR fee structure

The Government will publish a call for evidence on reusable packaging, which will improve our understanding of the opportunities and barriers associated with greater reuse. Glass is one of a number of packaging materials that could benefit from any future measures designed to incentivise reusable packaging systems. Glass manufacturers have indicated they would welcome a move towards reuse and would be ready to step up to meet demand for reusable products.

In early 2027, PackUK will also publish a call for evidence on the future of fee modulation. Modulation provides the financial incentive for producers to move to more environmentally sustainable packaging formats by discounting fees for green packaging. This is currently based on packaging recyclability. The call for evidence will give industry the opportunity to shape the future of modulation to deliver even more ambitious environmental outcomes and inform future policy on how PEPR can support UK industry. It will help build the evidence base for PEPR’s future modulation approach, including exploring how factors such as recycled content, excessive packaging, and domestic recycling infrastructure could inform PEPR fees in future years.

Updating the PEPR cost model

Using the latest available evidence and data PackUK have updated the PEPR cost model for 2027-28, which includes revised evidence on the resale value of glass. This is expected to result in lower estimated fees for glass from March 2027 and will help ensure that fee calculations continue to reflect the most up-to-date information available.

We believe this package of measures demonstrates the Government’s commitment to support UK business and growth, while reducing waste, supporting recycling and protecting our environment.

[HCWS466]