Glass Packaging: Extended Producer Responsibility

Neil Hudson Excerpts

Wednesday 14th May 2025 Westminster Hall

[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?