Glass Packaging: Extended Producer Responsibility

Mary Creagh Excerpts

Wednesday 14th May 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Mary Creagh)]

I am grateful for that guidance, Mr Stringer. I did not do that last week, so the Clerks have clearly made a mark against my name. I will do my best, and I have my team on standby to yank me down, as I am sure you will do. It is a pleasure to serve under your chairship today.

I thank my hon. Friend the Member for Rotherham (Sarah Champion) for asking for this debate. She has been a doughty supporter of Beatson Clark in her constituency and of the glass industry in general. I also thank hon. Members from across the parties who have made valuable points today.

The aim of the reforms is to create a more circular and resource-efficient economy. They are the biggest reforms in a generation. The three elements—simpler recycling, DRS and extended producer responsibility for packaging—will turn the dial on recycling rates, which, as the hon. Member for Epping Forest (Dr Hudson) said, have stagnated over the past 15 years and are bumping along at 42% to 44%. Assessments show that getting our household recycling rate up to 65% over the next 10 years will drive £10 billion of new investment in the British economy and create 21,000 new jobs.

[Sarah Champion]

Will the Minister give way?

[Mary Creagh]

I will make some progress and then give way.

UK circular industries—those that keep products and materials in circulation for as long as possible—currently deliver £67 billion a year to the economy, up from £44 billion in 2008, and provide 827,000 jobs. My hon. Friend the Member for Dunstable and Leighton Buzzard (Alex Mayer) talked about the innovators in her constituency creating new packaging. I will take away the point about weights and measures and see what we can do in a cross-ministerial way.

[Sarah Champion]

Will the Minister give way?

[Mary Creagh]

I will give time at the end but I want to make some progress.

The annual growth rate of circular industries is 3%, more than double the UK’s overall growth rate of 1.2%. Extended producer responsibility for packaging—pEPR—moves recycling costs from taxpayers to packaging producers. Think about it: not everybody drinks and not everybody shops online, but we are all paying for the costs of collection. We have had a great tour of drinking places, hostelries and amazing producers, but at the moment everybody in the country is paying for that, through council tax and general taxation. These reforms are creating systematic change, and that is hard.

Simpler recycling in England will make recycling easier and consistent. People will be able to recycle the same materials, including glass, whether they are at home, work or school, which will create a step change in the quality and quantity of recyclate streams. That is enabled by pEPR, which will pay for the new costs associated with the change, as my hon. Friend the Member for Ealing Southall (Deirdre Costigan) mentioned.

We are also introducing deposit return schemes in England, Northern Ireland and Scotland that add refundable deposits to single-use plastic, steel and aluminium containers. I discussed this with my colleague in Northern Ireland last week at the British-Irish Council environment ministerial meeting at Kew Gardens. We had a two-hour debate about how we would co-operate on the circular economy, in particular looking at the challenges of Guernsey, Jersey and the Isle of Man—island economies with no real reprocessing facilities—and what we can all learn from each other.

[Wendy Chamberlain]

Will the Minister give way?

[Mary Creagh]

I am going to make some headway.

DRSs cut litter, boost recycling rates to more than 90% and create high-quality materials that industry can reuse. Since it launched in 2024, the Republic of Ireland’s DRS has seen over 1 billion containers returned and a near 50% reduction in drinks container litter. Last week, I met Timmy Dooley, the Minister of State for Environment, Climate and Communications in the Republic of Ireland, who he said he had been sceptical of the DRS but now has the zeal of a convert.

This challenge is changing the way in which retailers and producers think about eco-design. Walkers is starting to use paper-based packaging for crisp multipacks, and many supermarkets are now using paper rather than plastic trays for fresh food. Our vision is to become world leaders in circular design, technology and industry.

These reforms were started by Michael Gove, late of this parish, back in 2018—seven years ago. I remember successive Secretaries of State for DEFRA coming to the Environmental Audit Committee, when I was Chair, and promising these reforms and deposit return schemes. There has been extensive engagement and consultation with business on pEPR, including public consultations in 2019 and 2021. Businesses have had a clear indication, and the scheme has already been delayed twice.

My officials run monthly packaging engagement forums, which regularly draw more than 1,000 attendees, to provide updates and test policy development with stakeholders. I have met British Glass several times to hear its concerns. I met Heineken last September. I met British Glass in October 2024, and then in January at a glass reuse roundtable hosted by the British Beer and Pub Association at the Budweiser Brewing Group. On 11 February, the Minister of State, Department for Energy Security and Net Zero, my hon. Friend the Member for Croydon West (Sarah Jones), joined me to discuss the glass sector. We have engaged on this issue.

The glass sector lobbied extensively to be excluded from the deposit return scheme. We respected that position, and kept that approach during the final passage of the DRS and pEPR legislation. Legislation on pEPR was supported on both sides of the House, but sadly the DRS was not. My officials have talked with businesses that make and use glass packaging, and we have listened to feedback to ensure that the fees are set fairly. I am very aware of the issues that the glass sector has raised about dual-use items—items that can be disposed of in either business or household waste streams. It has been difficult to find an answer that works for everyone, and because of the issues raised in the debate, I have asked my officials to consult with industry immediately to find the fairest solution.

There has been a lot of talk about small businesses. Many international pEPR schemes offer no exemption for small business. We responded to UK small business concerns by putting in place some of the most generous exemptions of any scheme globally. The exemptions mean that businesses with a turnover of below £2 million, or that place less than 50 tonnes of packaging on the market, are not obliged to pay fees. Those exemptions apply to approximately 70% of UK businesses supplying packaging in the UK. There are quarterly payment options to help with cash flow for larger businesses, and we will watch the de minimis thresholds carefully. If we raised the thresholds, that would put costs on to the remaining businesses, because local authority collection costs would remain the same.

The pEPR fees for glass are lower than those for aluminium and plastic. Because glass packaging is heavier, it costs more to handle per unit than some other materials. We have worked closely with industry and local authorities to make sure that the costs used to set producer fees accurately reflect the on-the-ground waste management operation costs that every taxpayer currently has to pay. Weight is a driving factor in waste management and it is the most common basis used to determine costs for public and private sector collection; that is why it is central to our approach. But the scheme relies on all producers paying their fair share. As my hon. Friend the Member for Ealing Southall said, there was a range, but there was unhappiness with that, so in December we introduced a set point of £240 per tonne. The fewer free riders there are in the system—

[Helen Morgan]

Will the hon. Member give way?

[Mary Creagh]

Let me finish my point; I have not made it yet.

The fewer that do not report and pay on their packaging, the lower the fees will be for everybody. That point was raised by my hon. Friend the Member for Rotherham in previous debates: some people do not report their packaging. I have instructed my officials to work with regulators. We have done a sprint on that and tracked down about 1,800 suspected free riders, with a little over 200 companies under review. I pay tribute to the Environment Agency officials up in Sheffield who have done that, and to agency officials and the Met police, who last week arrested two individuals in London for packaging export note fraud and suspected money laundering. We are going to keep this under review. This work is having a real impact. We will publish the year one base fees in June, and I am optimistic that the result will be an improved picture.

I am happy to give way if Members still have questions.

[Helen Morgan]

Businesses really need to know what that rate will be as soon as possible. The financial year has already started, they have very little headroom in their cash flows and they need to be able to plan. Will the Minister commit to give us that number as soon as possible?

[Mary Creagh]

That number will be published by the end of June and businesses are aware of that timescale.

[Dr Gardner]

There are wider issues with EPR, including for innovative companies supplying new types of packaging. Woolcool produces wool-based packaging that is compostable and biodegradable, but it is classed as worse than polystyrene because it is so innovative that it is unclassified. Will the Minister agree to look into that?

[Mary Creagh]

I will look into that. I know that wool is used in certain packaging situations. In a way, its usage is too small to register, but we will look at all these innovative ideas and how we keep things in circulation for as long as possible. My hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) mentioned many pubs—did he mention Greene King?

[Jacob Collier]

indicated assent.

[Mary Creagh]

He did. Greene King, of Bury St Edmunds, has already started using reusable glass bottles in 65 pubs served by its Runcorn depot. It has collected over half a million bottles since January. I reassure hon. Members that I am alive to these issues and we hope to make further progress.