UK Hospitality sector raises alarm over EPR policy’s financial burden

UK – The UK hospitality industry has expressed serious concerns over the financial and operational impacts of the government’s Extended Producer Responsibility (EPR) policy, proposed by the Department for Environment, Food & Rural Affairs (Defra).

Under the EPR scheme, packaging producers are required to pay for the collection, recycling, and disposal of the packaging they place on the UK market.

However, leading industry associations argue that Defra has underestimated the economic implications for the hospitality sector, prompting calls for a minimum one-year delay in the policy’s implementation.

A coalition—including UKHospitality, the British Beer and Pub Association, and several other trade bodies—has written to Prime Minister Keir Starmer and the Chancellor, urging a comprehensive review.

They argue that key issues have been “deprioritized” by Defra, threatening investment, growth, and stability in the sector.

One of the most pressing concerns is the risk of double payment for waste collection. Due to current policy design, beverages such as beer and wine sold on-premises are incorrectly classified as household waste.

This misclassification subjects them to packaging levies even though the waste never enters the household stream.

As a result, hospitality venues could face additional EPR-related charges on top of existing commercial waste collection fees.

The coalition warns that the lack of clarity on final EPR fees, coupled with confusion around waste classification, is already disrupting investment decisions and eroding business confidence.

They add that rising costs are likely to be passed on to consumers, potentially dampening demand and contributing to inflationary pressures.

Another major concern is the disproportionate cost burden on glass packaging. Indicative fees for glass are significantly higher than those for other materials, which the coalition fears could unintentionally drive businesses to shift to plastic alternatives, undermining glass recycling efforts and contradicting the environmental goals of the EPR.

In a joint letter, the coalition stated, “There is a widespread belief that this legislation is being introduced far too quickly.

“The financial burdens placed on businesses and their impact on growth are not being acknowledged by Defra. Indeed, Defra has confirmed that EPR will operate in an unfair manner for at least two years.”

Earlier this month, the UK government initiated formal notification to the EU on planned amendments to EPR regulations in Northern Ireland, indicating broader reforms may be under consideration.

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