More than 4,700 jobs in Britain’s glass manufacturing industry are at immediate risk because of a packaging levy introduced under the Government’s Extended Producer Responsibility (EPR) scheme, the GMB union has warned.
The EPR scheme, which came into effect from 2023 and began charging fees this year, requires brands and retailers to cover the full cost of collecting, sorting and recycling the packaging they place on the market. The fees are calculated according to the weight and recyclability of packaging materials – a formula that industry groups say unfairly penalises heavier but infinitely recyclable materials such as glass.
Job losses and factory closures loom
The GMB union estimates that at least 4,752 positions are at risk across the glass supply chain. It warned that unless charges are reduced, factory closures could become unavoidable, with industrial communities outside London particularly exposed. Andy Belfield, the union’s regional secretary, said: “British workers are seeing their jobs put at risk as providers move away from British glass bottle production. These are good, well-paid jobs in our industrial heartlands that Britain can’t afford to lose. GMB are calling for the Government to stop the glass tax and protect the livelihoods of the workforce and their communities.”
British Glass, the trade association for the sector, has warned of “potential decimation” across an industry that supports around 120,000 jobs in its wider supply chain. Investors are reportedly stalling billions of pounds in planned UK projects because domestic production has become uncompetitive overnight, according to British Glass.
Why glass is hit hardest
The central flaw identified by critics is the EPR scheme’s weight-based fee structure. Because fees are charged per tonne, glass – which is significantly heavier than plastic or aluminium – incurs far higher charges than lighter alternatives, even when those alternatives are less recyclable.
According to British Glass, glass accounts for only about five per cent of packaging by volume but is expected to bear a third of all EPR costs. Fees for glass packaging are reported to be around 49 times higher than for some materials that are harder to recycle. The association described the system as “irrational” because it pushes manufacturers towards lighter, less sustainable options.
The environmental logic of the levy has also been questioned. The EPR scheme is part of the Government’s wider Resources and Waste Strategy, which aims to increase recycling rates and contribute to Net Zero targets. But critics argue that the current design undermines those goals by incentivising a shift away from glass – a material that can be infinitely recycled – towards less sustainable materials.
A survey by British Glass found that 43 per cent of brands and retailers are considering switching away from glass, with 77 per cent of those intending to move to plastic. There is also a risk that UK glass producers will be displaced by imports from countries with lower production costs and potentially higher carbon footprints, further undermining domestic manufacturing and environmental ambitions.
Industry figures say Britain now has the highest packaging fees in Europe, placing domestic glass producers at a competitive disadvantage compared with their continental counterparts.
Brewers face ‘crushing cost’
The British Beer and Pub Association (BBPA) estimates that the levy is costing the brewing industry £124 million a year, adding around six pence to the cost of every 500-millilitre glass bottle. Emma McClarkin, the association’s chief executive, said the scheme had created “sky-high bills for glass” and described it as “another crushing cost that brewers are forced to bear.”
She warned: “The exorbitant fees are wiping out the slender profit brewers make on a bottle of beer, which not only threatens jobs and British supply chains, but could ultimately undermine the Government’s ambitions for the economy and environment.”
The BBPA also highlighted that pubs and breweries may have to pay twice for waste collection: products are classified as household waste under the EPR scheme, yet pubs already pay private contractors for their waste disposal. A 330-millilitre glass beer bottle could incur an extra cost of approximately five pence, potentially leading to a retail price increase of at least 10 pence per bottle after supply chain costs and VAT are added. A standard bottle of wine could see an increase of nine pence, and spirit bottles an extra 11 pence.
Government promises review amid industry scepticism
The issue was debated in the House of Commons earlier this week after Sarah Champion, the MP for Rotherham, secured a parliamentary debate on the levy. During the debate, Minister Mary Creagh acknowledged the concerns and said the Government would launch a new call for evidence, inviting industry representatives to submit further information on the scheme’s impact.
However, Nick Kirk, director of British Glass, welcomed the announcement but expressed scepticism. “A call for evidence is welcome but British Glass has already submitted independent evidence to DEFRA which was dismissed. The Government must ensure that industry voices are heard this time round.”
Dame Nia Griffith MP also voiced concerns during the debate, stating that heavier, highly recyclable materials like glass and steel are “perversely affected” by the weight-based methodology. Amendments to the packaging EPR scheme have been debated and approved in Parliament with the aim of improving fairness, clarity and operational efficiency, but critics argue they do not go far enough to address the core issue of a fee structure that penalises sustainable materials.
