British Glass has welcomed government plans to change the UK's packaging extended producer responsibility (pEPR) fee system, including an exemption for certain glass packaging supplied directly to licensed hospitality venues.
The proposals also include an update to the material value assigned to glass packaging and plans to introduce higher modulation factors for less recyclable packaging materials from the third year of pEPR. The government will additionally issue calls for evidence on fee modulation and reuse, according to the announcement.
Proposed measures
- An exemption for certain glass packaging supplied directly to licensed hospitality venues.
- An updated material value for glass packaging.
- Higher modulation factors for less recyclable packaging materials from pEPR's third year.
- Calls for evidence on fee modulation and reuse.
British Glass said the changes respond to a cost structure it has criticised. Because pEPR fees are calculated by weight rather than by the number of packaging units placed on the market, glass has faced what the organisation describes as a disproportionate share of costs.
That has increased pressure on UK glass manufacturers from food and drink companies that purchase packaging by unit count rather than weight, the organisation said. Those buyers have been prompted to switch from glass to lighter packaging materials, it added.
For glass producers, the concern is not only the level of the fees but the basis on which they are charged. A weight-based system can put a heavier material at a cost disadvantage against lighter alternatives when companies compare packaging on a per-unit basis, according to British Glass's account of the market.
Industry response
Nick Kirk, executive director of British Glass, said the government had listened and recognised the importance of maintaining a strong domestic glass industry. He said the proposed changes begin to address some of the unintended consequences of pEPR and better recognise the environmental benefits of glass.
Kirk pointed to the planned update to glass's material value, the proposed acceleration of modulation factors and a commitment to review future fee structures as measures that move the system in a fairer direction.
He said it was important to understand the full impact of the proposed exemption, while it was encouraging that the government recognised the challenges facing hospitality businesses and was taking steps to avoid unnecessary costs. British Glass particularly welcomed the forthcoming calls for evidence on modulation and reuse.
The organisation noted that the reforms will not take effect until the scheme's third year, covering April 2027 to March 2028. It said glass manufacturers continue to face high energy costs, international competition and uncertainty surrounding future packaging policy.
Kirk said the changes must be the start rather than the end of the process. Glass manufacturers are making decisions on investment, production and jobs now, he added.
Sarah Champion, MP for Rotherham, said the government had shown that it means business when it comes to tackling harmful packaging materials and protecting UK glass manufacturing.