The Government has announced plans to reduce packaging costs for businesses, including changes to glass recycling fees and an exemption for certain drinks containers supplied directly to hospitality venues.
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Announced on Wednesday (11 November), the measures follow sustained pressure from the hospitality and brewing sectors over the financial impact of EPR, which was introduced in April 2025.
What is EPR and why has it caused problems?
Extended Producer Responsibility (EPR) is a Government scheme that makes businesses responsible for the cost of managing the packaging they place on the market.
Fees are calculated according to the type and weight of packaging used, with producers contributing towards the collection, management and recycling of household packaging waste.
However, hospitality businesses have argued glass bottles consumed on site are incorrectly classified as household waste, despite venues already paying commercial waste contractors to collect and recycle them.
It means pubs could effectively end up paying twice for the same packaging, with EPR costs passed on by suppliers alongside existing commercial waste charges.
The BBPA estimated this double-charging issue costs pubs £50m annually.
Brewers have also raised concerns about the financial and administrative burden.
St Austell Brewing director Georgina Young previously described packaging as one of the sector’s biggest issues, highlighting the time producers were spending assessing packaging weights and specifications.
What has the Government announced?
There are two main changes affecting pubs and brewers.
1. Glass exemption
From April 2027, the majority of glass drinks containers supplied directly by producers to licensed hospitality venues will be exempt from EPR disposal cost fees.
The Government estimates this could save up to 6p per beer bottle and 10p per wine bottle. For a pub selling 10,000 beer bottles and 3,700 wine bottles, this could mean savings of up to £870 annually.
However, the exemption is restricted to direct sales, rather than products supplied through wholesalers.
2. Lower fees for recyclable packaging
The Government will consult on changes to packaging fees, with lower charges for easily recyclable materials such as glass, paper and metal, and higher charges for harder-to-recycle packaging, including some plastics.
The changes could reduce fees for the most recyclable packaging by up to 40% per year. This is an estimate rather than a guaranteed saving, with the final impact dependent on packaging volumes and local authority costs.
The Government will also gather evidence on reusable packaging and how EPR fees should be calculated in future, including whether factors such as recycled content and domestic recycling infrastructure should influence charges.
What has the industry said?
The announcement follows more than a year of criticism from hospitality and brewing organisations.
In May 2025, a coalition of trade bodies wrote to the then Prime Minister and Chancellor calling for EPR to be delayed by at least a year.
They raised concerns about double charging, uncertainty over costs and the possibility high glass fees could encourage businesses to switch to plastic packaging.
Previously, the British Beer & Pub Association (BBPA) warned EPR-related cost increases were equivalent to the loss of 5,000 jobs.
While the trade body welcomed the latest announcement, chief executive Emma McClarkin said the Government must ensure leased and tenanted pubs are included.
She highlighted the 12,000 publicans operating these sites, adding not included them meant more than a quarter of Britain’s pubs could miss out.
UKHospitality has similarly welcomed the intervention but warned the direct-sales restriction excludes many businesses which rely on wholesalers.
The trade body called for all packaging that remains on site in hospitality businesses to be exempt from EPR fees.
It has also warned excluding some packaging could leave other businesses facing higher costs to fund the changes.
What does it mean for pubs?
The extent of the savings will depend on how pubs purchase their drinks and the type of packaging they use.
While some operators could benefit from the glass exemption, those outside the eligible direct-supply arrangements may see little immediate difference.
The wider fee reductions could offer additional savings, although these will depend on the materials used.
For leased and tenanted operators, clarification over eligibility will be particularly important.
What does it mean for brewers?
Brewers using glass bottles and other recyclable packaging could benefit from lower EPR fees, while those using harder-to-recycle materials may face higher charges.
The direct-supply exemption could also benefit producers selling to licensed hospitality venues, although the impact will depend on their distribution arrangements.
Packaging decisions, including the weight and recyclability of bottles, cans and cardboard, will remain important considerations.
The Government’s planned reviews of fee modulation and reusable packaging could also influence future packaging formats and investment.
What happens next?
The glass exemption is due to come into effect in April 2027, with further consultations expected on packaging fees and reusable packaging.
PackUK is expected to publish a call for evidence on future fee modulation in early 2027, considering whether factors beyond recyclability should influence charges.
While the latest measures offer some relief, further decisions on the scope of the exemption and future fee calculations will determine the overall impact on the hospitality and brewing sectors.
