Understanding the UK's New EPR Glass Tax: Implications and Industry Concerns

In April 2025, the UK government implemented a new packaging levy under the Extended Producer Responsibility (EPR) scheme, significantly impacting the glass packaging industry. This initiative aims to transfer the financial responsibility for household packaging waste management from local authorities to the producers themselves. 

What is the EPR Glass Tax?

The EPR scheme mandates that producers cover the full lifecycle costs of their packaging, including collection, recycling, and disposal. Fees are calculated based on the weight and recyclability of the packaging material. Consequently, heavier materials like glass are subject to higher charges compared to lighter alternatives such as plastic or aluminium. For instance, a 330ml glass beverage bottle could incur a fee of approximately 5p, potentially leading to a retail price increase of at least 10p per bottle after accounting for supply chain costs and VAT

Rationale Behind the Tax

The government's objective with the EPR scheme is to incentivise producers to design more sustainable packaging and reduce environmental impact. By making producers financially accountable for the end-of-life management of their packaging, the policy aims to encourage the use of materials that are easier and more cost-effective to recycle.

Industry Response and Concerns

The glass industry has voiced significant concerns regarding the EPR scheme. British Glass, the trade association representing UK glass manufacturers, argues that the weight-based fee structure unfairly penalises glass, despite its 100% recyclability and closed-loop recycling capabilities. They warn that the increased costs could lead to a shift towards less sustainable packaging materials, such as plastic, undermining environmental goals

Moreover, the industry fears that the additional financial burden could result in job losses within the glass manufacturing sector, which currently supports approximately 120,000 jobs across its supply chain. Smaller businesses, in particular, may struggle to absorb the increased costs, potentially leading to reduced competitiveness and market share.

Potential Impact on Consumers

Consumers are likely to experience price increases on a range of products packaged in glass, including beverages and food items. For example, an 18-pack of bottled beer could see a price hike of around £1 due to the new levy, VAT, and associated supply chain costs . These increases may prompt producers to switch to alternative packaging materials, potentially affecting product quality and environmental sustainability

Looking Ahead

While the EPR scheme's goals align with broader environmental objectives, the glass industries and hospitality industries has urges the government to reconsider the fee structure to avoid unintended consequences. A more balanced approach that recognises the recyclability and environmental benefits of glass could help achieve sustainability targets without disproportionately impacting a vital manufacturing sector. The government has responded and promised to reexamine EPR. We'll keep you posted on any developments.