British pubs and hospitality businesses could benefit from lower packaging costs after the government announced plans to remove duplicate recycling charges on glass drinks containers from April 2027.
The changes will exempt glass bottles supplied directly by producers to licensed pubs, restaurants, and other hospitality venues from Extended Producer Responsibility disposal fees, addressing complaints that businesses are paying twice for the management of the same packaging.
The Department for Environment, Food and Rural Affairs estimates that the changes could reduce costs by up to 6p per beer bottle and 10p per wine bottle.
Its illustrative calculation suggests that a pub selling 10,000 beer bottles and 3,700 wine bottles annually could save up to £870.
Actual savings will depend on purchasing arrangements and how packaging producers and distributors pass reduced charges through to hospitality customers.
The announcement follows concerns that glass bottles consumed on licensed premises can attract producer responsibility charges even though hospitality operators already pay commercial waste contractors to collect and recycle them.
Under Extended Producer Responsibility, companies placing packaging on the UK market contribute towards the costs of managing the resulting waste. The framework shifts responsibility for household packaging disposal from local taxpayers towards packaging producers.
However, bottles sold directly into hospitality often enter a separate commercial recycling system rather than being collected through council household waste services.
The government’s decision recognises that distinction, with the direct-supply exemption intended to prevent overlapping charges while retaining the wider principles of producer responsibility.
Further reforms remain under consideration —
Ministers also intend to consult on changes to the way packaging disposal fees are calculated, potentially reducing annual charges for highly recyclable materials by as much as 40%.
The proposed adjustments would provide more favourable treatment for materials such as glass and paper, while increasing the relative costs associated with packaging that is more difficult to recycle.
Those wider reductions are not yet confirmed. PackUK, the scheme administrator, is expected to launch a call for evidence on packaging fees in early 2027.
The government is separately preparing to gather evidence on opportunities to increase packaging reuse across commercial supply chains.
Environment Secretary Dame Angela Eagle said: “We’ve listened to industry and hospitality businesses and are stepping in to reduce the fees for the most recyclable packaging – including tackling double charging on glass bought by pubs.”
The British Beer and Pub Association welcomed the direction of the reforms but warned that leased and tenanted publicans should not be excluded from the benefits.
Chief executive Emma McClarkin highlighted approximately 12,000 publicans operating leased and tenanted venues, arguing that arrangements covering only direct purchases could leave a substantial proportion of the sector without equivalent relief.
The British Soft Drinks Association also called for further work on products supplied indirectly through wholesalers, which may not qualify for the initial exemption.
Alongside the regulatory changes, the government highlighted ongoing Trade Remedies Authority investigations into imports of glass containers from China and Turkey. These concern alleged dumping and subsidies rather than packaging disposal fees.
The producer responsibility scheme will continue funding local authority recycling services, with the government reporting approximately £1.4bn provided to councils.
The direct-supply exemption is due to take effect in April 2027, while further decisions about the treatment of indirect supply and recyclable packaging fees will follow consultation and evidence gathering.
