Glass Packaging: Extended Producer Responsibility

Graham Stringer Excerpts

Wednesday 14th May 2025 Westminster Hall

[Sarah Champion]

I am sorry, no.

In public, and in response to correspondence, DEFRA stated that there is no, or not enough, evidence of material-switching. That is simply not true. The industry, our businesses, and the sectors affected have supplied that evidence. It makes me wonder whether there is any threshold of evidence that would result in a rethink of the scheme.

DEFRA has highlighted the modulation of future EPR fees to address those expansive concerns, but let us be honest, even at the earliest point that such modulation would be introduced, huge and likely terminal damage will already have been done to glass manufacturers. It is not clear under the current guidelines whether glass will receive a reduction in fees, and it could even receive a fee increase in the future. Fees are currently charged retrospectively so, given the lack of confirmed information on the level of fees that glass will face, the costs are essentially unrecoverable. How can businesses be expected to operate under this profound uncertainty about their current and future costs?

For DEFRA, “reuse” often represents a magic bullet that will address all concerns, if only the industry would get onboard. The glass sector is keen to be part of the development of reuse and glass is the perfect material for it, but we must accept that large-scale national reuse systems are at least a decade away because there is currently no reuse infrastructure. Furthermore, not all products are suitable for reuse. Glass manufacturers can already supply reusable bottles, but a reuse scheme is much more than that. It would require significant buy-in across the whole supply chain.

The Minister also needs to recognise that not all glass bottles are for drinks. Beatson Clark, in my constituency, manufactures medicine bottles. Reuse is a laudable goal and one that the glass industry is keen to collaborate with the Government to achieve, but it is being repeatedly deployed as grounds to ignore the industry’s concerns about EPR. Reuse and EPR are two separate issues, and the conflation seems a deliberate muddying of the debate. The short-term impact of EPR could destroy the UK glass industry long before plans for reuse are even on the drawing board.

DEFRA has stated that the recycling reforms will add at least 21,000 new jobs and £10 billion to the UK economy, and stimulate the growth on which the Government are rightly focused. Yet it is unclear how those new jobs will be created. They are unlikely to be the kind of wealth-generating jobs that we currently have in the glass sector—jobs that are based in our manufacturing heartland, which really needs that work. Even if the Minister’s prediction were true, why risk existing jobs? Why not take the time to get EPR right and have both?

This is not scaremongering. The glass packaging industry is being driven into a crisis directly of the Government’s own making. UK glass manufacturers are already reporting that demand is down by 20%—although the EPR policy has been in place for only a month—and that low-cost imports have increased to help to absorb EPR costs.

On paper, I get that the Government are ostensibly seeking to encourage recycling, while recovering the cost to the public purse of its delivery. That is the right objective, but their approach will achieve the exact opposite. It will encourage switching to less recyclable materials; add costs to businesses such as pubs and breweries already struggling under inflationary and other cost pressures; and increase prices for consumers. If the concerns of industry are not addressed today, the Government also risk destroying our domestic capacity, leaving us reliant on highly polluting foreign imports.

I have raised these issues with the Minister time and again, as have other hon. Members, British Glass and individual businesses. I cannot therefore understand the reticence to engage with these very real problems. The origins of EPR lie with the previous Administration, but by continuing this flawed and ultimately self-defeating approach, a Labour Government risk destroying a great British industry. Does the Minister really want to be responsible for killing off our most recyclable packaging producer?

[Graham Stringer (in the Chair)]

We have approximately 39 minutes before I call the Front-Bench spokespeople, and eight Members who wish to speak, so I will impose a five-minute limit on speeches. Could hon. Members speak to the time, or slightly less? If there are interventions, I will have to reduce that limit.

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[Several hon. Members rose—]

[Graham Stringer (in the Chair)]

Order. We are running out of time, so I will reduce the time limit to four minutes.

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[Alex Mayer]

I am absolutely aware of Frugalpac in Ipswich. The east of England, where I am from, is leading the charge.

These modern green manufacturing organisations face certain issues. I urge the Minister to talk to other Departments as well, not least about the Weights and Measures (Intoxicating Liquor) Order 1988, which I am told makes it illegal to sell 125 ml portions, which is what an average person would normally order as a glass of wine, in this modern packaging. There is stuff to be done, but luckily that is not a DEFRA thing.

There will always be a role for glass. It looks pretty—there is a bottle of it here. I love my Bonne Maman jars. We are never going to be able to turn an ecoSIP container into a candlestick holder. But we have to crack down on waste and boost recycling. The extended producer responsibility is an important first step, not least because it will also create 21,000 jobs and put a £10 billion investment into recycling, which is really welcome. In conclusion, I urge the Minister not to bottle it and to make sure that she goes full steam ahead.

[Graham Stringer (in the Chair)]

We now move on to Front-Bench spokespeople, starting with Sarah Dyke for the Lib Dems.

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[Dr Neil Hudson (Epping Forest) (Con)]

It is a great pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Member for Rotherham (Sarah Champion) on securing this important debate, which provides an opportunity to examine the matter further. I also congratulate colleagues from across the House, and across the country, for their powerful contributions referencing the glass manufacturers, pubs, breweries, distilleries and other affected businesses in their constituencies.

As we have heard, pubs are an important part of our local communities, and of our social and family interactions, in both happy and sad times. A number of pubs have been namechecked today, and we have had a cider tour. I believe that even Heineken was namechecked, and, from memory, it refreshes the parts that other beers cannot reach.

The hon. Member for Rotherham made a powerful speech in which she advocated very strongly for Beatson Clark, a major manufacturer in her constituency that plays an important role in producing the amber glass for medicine bottles.

We Conservatives have a proud record of environmental stewardship. Between 2010 and 2022, we successfully reduced the amount of waste going to landfill by 47% and the amount of biodegradable waste going to landfill by 46%. We also introduced a simpler recycling collection system to make it easier to recycle, saving people time and preventing confusion to boost recycling rates. Additionally, our introduction of the single-use plastic bag charge in 2015 saw a remarkable 95% cut in sales of plastic bags in major supermarkets, significantly reducing plastic waste.

We also passed the landmark Environment Act 2021 and set targets to tackle some of the biggest pressures facing our environment. That includes ensuring progress on clean air, clean and plentiful water, less waste, a more sustainable use of our resources, a step change in tree planting, a better marine environment, and a more diverse, resilient and healthy natural environment. In addition, the Act includes a new, historic and legally binding target to halt decline in species by 2030.

However, we must acknowledge that challenges persist. Concerningly, household waste recycling rates have plateaued. The latest published data from December 2024 showed a small decline from 44.6% in 2021 to 44.1%. However, there were some positives: notably, a rise in packaging waste recycling from 62.4% in 2022 to 64.8% in 2023.

The previous Conservative Government laid the foundations for progress in recycling and enhancing the circular economy by embracing the “polluter pays” principle to drive up recycling and improve resource efficiency. The Labour Government have attempted to take up the Conservative baton, but as ever with their implementation, the devil is in the detail. Although further action is needed to drive up recycling rates, significant concerns have been raised about the extended producer responsibility scheme in its current form, including issues relating to fee calculations, consistency across the devolved nations, cross-border business implications and the timing of the scheme’s roll-out, given the new financial challenges that this Government have bestowed upon businesses.

Although some aspects of the EPR scheme have come into effect, including data reporting, businesses are yet to feel the fee element. For example, waste disposal fees—otherwise called waste management fees— which need to be paid for packaging that is classified as household packaging, commonly binned packaging or glass household drinks containers, will be invoiced from October 2025. That invoice will be for fees for packaging placed on the market in 2024.

Modulated fees—an extension of waste disposal fees—are scheduled to come into effect in 2026 and will add a financial incentive or penalty, taking into account the environmental impact and recyclability of specific packaging formats. Therefore, hard-to-recycle packaging may face a higher fee.

This debate is focused on glass, and Members will no doubt be aware of concerns raised by the British Glass Manufacturers Confederation about waste disposal fees. Although it is welcome that the Government have clarified that they are looking at weight-based fees, there are concerns that glass will still be significantly impacted. As has been said today, there is much uncertainty about how the fees will be calculated, thereby penalising glass.

The spirits industry is an important part of the UK economy, and there are many spirit businesses operating across the UK. The UK Spirits Alliance has also raised concerns about the potential economic impact of those fees on the industry, which supports more than 446,000 jobs and contributes £13 billion annually to the UK economy. Disproportionate treatment of glass could threaten that vital sector. I understand that DEFRA has suggested that 80% of the cost of EPR will be passed on to the consumer. Small and medium-sized producers, including independent distillers, will have to make the difficult decision either to absorb the cost or pass it on.

The British Beer and Pub Association estimates that EPR fees will add 5p to 7p per beer bottle, equating to £154 million in additional annual costs. Alarmingly, the Office for Budget Responsibility has warned that EPR is unlikely to have a material impact on recycling rates, which raises questions about whether this iteration of the scheme is effective in achieving its environmental aims.

With that in mind, I would be grateful if the Minister could clarify whether the Government believe that glass, which is 100% recyclable, should have higher or lower waste disposal fees than plastic or aluminium. Furthermore, will she confirm what assessment has been made of the potential damage to the glass industry from the waste disposal fees, taking into account both the economic cost and the impact on jobs? Is she concerned that high waste disposal fees for glass may result in a shift in packaging to plastic, which may ultimately undermine the UK’s environmental goals?

Will the Minister also outline how the UK Government are working with the devolved nations to implement the EPR? What differences will there be nation to nation? What impact will that have on businesses operating across borders? For example, how will the Scottish Government’s decision to include glass in the DRS impact the roll-out of England’s EPR? It is so important to have joined-up thinking and policy implementation across our United Kingdom in sectors that span our domestic borders. Will the Minister also clarify whether the Government have ambitions to expand the EPR scheme to any other industries? If so, will impact assessments be carried out? In the light of the OBR’s assessment of the EPR, how will the Government seek to increase recycling rates?

I mentioned the timing of the roll-out of the EPR, and it is important to highlight how significant that is. The scheme, which imposes additional costs on businesses, is being introduced at a time when the Labour Government have caused significant uncertainty and pressure for businesses. The introduction of Labour’s jobs tax—the increase in national insurance contributions—means that businesses face an extra £900 in national insurance costs per employee. For many businesses, that may lead to job cuts, wage freezes or investment being put on hold. Sadly, in some cases, it may lead to businesses being shut down. If a business is able to survive, it is likely that those additional costs will be passed on to consumers.

Given that context, it is only right to consider whether it is appropriate to add further costs on businesses, however commendable the aim. His Majesty’s most loyal Opposition will continue to scrutinise these developments closely and ensure that the concerns of businesses and consumers are not ignored, while we continue to protect our precious environment.

[Graham Stringer (in the Chair)]

Minister, will you try to leave a short time for the proposer to wind up the debate?