Recyclability of glass recognised in pEPR year-two fees, but methodology flaws still undermining UK glass industry.
Sheffield 16/12/2025. British Glass welcomes clarification on the modulation factors that are included in the publication of PackUK’s indicative year-two fees. Overall glass packaging sees a smaller fee increase than other materials. However, significant concerns remain about competitiveness, fee calculation methodology and market impact.
PackUK has confirmed that indicative fees for glass packaging under year two of the packaging Extended Producer Responsibility (pEPR) scheme have not increased to the same extent as other materials. The organisation welcomes this recognition of glass’s strong recyclability performance but warns that issues within the scheme continue to undermine UK glass manufacturing.
Glass recognised as highly recyclable, but market impacts evident
Under the year-two modulation scheme, products rated as green, amber, or red, depending on their recyclability, with red products paying an additional 20% fee and green products receiving a 9% discount. Most glass packaging falls under the green rating of £185 per tonne, representing a reduction from year one and reflecting the environmental benefits and closed-loop recyclability of glass. The amber (base) fee for glass has increased to £205 per tonne mainly due to a reduced placed on the market compared to the previous year.
However, the fall in placed on the market (POM) volumes is a concern, indicating a move away from glass packaging towards less recyclable packaging materials. Even more worrying, is the growth of imported glass packaging, which has significantly risen in the first half of 2025. British Glass warns that pEPR is actively incentivising this trend as imported glass is a lower cost and therefore can absorb pEPR costs and remain competitive
Modulation helps, but does not go far enough
The impact of modulation will reduce the cost of pEPR on glass packaging, which is welcomed, but British Glass stresses further changes in the pEPR fee methodology are needed to maintain UK glass packaging production. The glass sector is calling for deeper and faster modulation reforms with a methodology that evolves to ensure infinitely recyclable packaging formats are treated preferentially to promote a truly circular economy.
A key concern is the government’s decision to retain material values at 2022/23 prices for the second year of the scheme (2026-2027).
The average value for MRF glass, which applies to two thirds of glass recycled in the UK has increased from -£5/tonne in 2022/23 to +£11/tonne and +£18/tonne in 2023/24 and 2024/5 respectively (Letsrecycle.com). This is due to real improvements in MRF processing driven by the PRN system which favours recycling of glass for more circular remelt over other applications such as aggregates.
By failing to update these figures, producers will continue to pay full local authority glass collection costs as well as receiving a small negative discount for material value instead of the larger positive discount they should be receiving. This strays widely from the legislative premise of EPR which is for producers to pay for the actual costs associated with the recycling and disposal of their packaging.
British Glass has lodged a formal complaint with Defra regarding this decision and hopes to work with PackUK to deliver a more accurate and evidence-based approach.
British Glass Federation Director, Dr Nick Kirk, stated:
"Glass is infinitely recyclable and plays a crucial role in supporting a circular economy. Since packaging is bought in units, pEPR costs should be calculated on a per-unit basis rather than by weight. This would provide a fairer system that rewards packaging materials that are recycled in closed‑loop systems within the UK, such as glass packaging.”
Following the first indication of pEPR fees in August 2024, British Glass strongly campaigned that glass was being unfairly penalised due to its weight over lighter, but less recyclable packaging materials and argued for changes to the calculation methodology.
PackUK has since indicated that major systemic reforms will not be introduced until year three of the scheme, citing the need for stability. British Glass warns that for UK glass packaging manufacturers, this delay comes too late, as the market is already switching away from glass.
Dr Kirk added:
"While the green-rated fee for glass is a positive step, inaccuracies in the fee calculation and the continued use of outdated values put glass at a disadvantage compared with competing packaging materials.
We are already seeing reduced demand for UK-made glass packaging. Urgent action is needed to correct these issues and safeguard glass manufacturing in the UK”
