British Glass welcomed clarification on the modulation factors that are included in the publication of PackUK’s indicative year-two fees. However, significant concerns remain about competitiveness, fee calculation methodology and market impact.
PackUK confirmed 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 welcomed this recognition of glass’s strong recyclability performance, but warned 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. Most glass packaging falls under the green rating of GBP 185 per tonne, representing a reduction from year one.
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.
Modulation helps, but does not go far enough
British Glass stressed 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). 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.
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, “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.”
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.