Packaging Manufacturers: Extended Producer Responsibility

Perran Moon Excerpts

Wednesday 1st July 2026 Commons Chamber

[Sarah Champion]

I absolutely support what my hon. Friend says. GMB and Beatson Clark have been fantastic on this issue, as have other unions. We should never forget the human impact of the debates that we have in this Chamber. When we talk about numbers, percentages and import tariffs, we forget that it is the people making the products who are suffering the most and facing the uncertainty.

A survey conducted by British Glass found that nearly half of businesses say that they have already switched away from glass, or plan to do so, due to EPR fees. Once those decisions are made, and once investment is committed to new packaging formats, they are unlikely to be reversed. Glass manufacturing is not easily replaced. Furnaces represent long-term capital investment—often hundreds of millions of pounds. Decisions about whether to rebuild or reinvest are already being delayed or cancelled, meaning hundreds of millions of pounds of investment in the UK is already being lost.

When production shifts overseas and capacity is lost, it is almost impossible to rebuild. I am not talking about short-term disruption. I am talking about permanent industrial decline. If left unchecked, the policy will not just reshape the packaging market; it will hollow out an entire industry. With that decline, as my hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) said, comes something even more serious: job losses.

[Perran Moon (Camborne and Redruth) (Lab)]

In my constituency we have three breweries—Verdant, Keltek, and St Ives Brewery based in Hayle. Does my hon. Friend agree that those breweries are about not just producing excellent product—which they all do—but the communities that grow up around them? Does she agree that there is a risk of social damage if we are unable to support those small breweries, and that this proposal risks that happening?

[Sarah Champion]

That is absolutely my concern. People do not talk about the impact on the supply chain. We already know that at least 350 jobs—more than 5% of the direct workforce—have been lost so far, but we do not know about the impact on the supply chains and associated businesses. These are not abstract numbers; these are well-paid, highly skilled manufacturing jobs, concentrated in industrial communities like mine, where, to be honest, such opportunities are at a real premium.

Since I first raised these issues nearly two years ago, I have been contacted by a range of businesses and industry groups, including: UK Hospitality, the British Beer and Pub Association, the UK Spirits Alliance, the Society of Independent Brewers and Associates, O-I Glass, the Scotch Whisky Association, the Wine and Spirit Trade Association, GMB, Unite, AB InBev, the all-party parliamentary beer group, the APPG on packaging in the circular economy, the Packaging Federation, Teva Pharmaceuticals, British Glass, and the Campaign for Real Ale. Their concerns are strikingly similar.

The EPR is not just affecting glass. Across the packaging sector, businesses are struggling in the face of this poorly designed, poorly implemented policy. Graphic Packaging International employs 57 people in my constituency, and upwards of 1,700 across the UK. It produces a range of fibre-based packaging for household goods, supplying major UK retailers with sustainable and innovative products, which are largely made from renewable or recyclable raw materials. However, like glass, they face unfairly high fees on the basis of being a heavier than their plastic equivalents.

That distortion is even greater for fibre-based composite packaging. Industry groups have identified what appear to be substantial errors in the methodology used for DEFRA’s EPR fee calculations for fibre-based packaging. By way of example, in the EPR fee cost breakdown, the cost of FBC collection is more than twice that of paper and board, yet it is collected for recycling with paper and board. How can the costs to local authorities be so radically different?

Similar anomalies are observed with other EPR cost categories, including sorting, residual collection and handling and disposal overheads. Costs for managing FBC should be similar to those for paper and board, yet are wildly disproportionate. Industry groups believe that that results from DEFRA seeming to have used data for another, wholly distinct type of FBC—beverage cartons—in its FBC fee calculation. Such elementary errors risk undermining the EPR’s core objectives. The Alliance for Fibre-Based Packaging has already reported evidence that long-standing shifts away from plastic towards more sustainable alternatives are slowing and, in some cases, reversing altogether.