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UK brewers slam ‘punishing’ packaging fees

06 January 2025 By Sophie Arundel

The industry warns that spiralling costs under the EPR scheme could hurt pubs and breweries without urgent government intervention.

The British Beer and Pub Association (BBPA) has called on the UK government to reconsider the crippling costs of the Extended Producer Responsibility (EPR) packaging scheme. The fees, which are set to start this year, have been described as “painful” by the association, as they threaten to push up costs for breweries and pubs already grappling with economic pressures.

In a letter to ministers, the BBPA emphasised the need for ongoing review of the scheme, which charges producers based on the amount and type of packaging they use. The group says the current estimates risk causing significant financial strain on the industry, which is still recovering from the impact of the pandemic and rising energy costs.

BBPA chief executive Emma McClarkin highlighted the need for transparency and fairness in the EPR fees. “We need clarity and a fair process to ensure costs are proportionate and manageable,” she said in a statement.

The association has stressed that failure to address the issue could see costs passed down to consumers, increasing the price of a pint at a time when budgets are already tight.

A bigger problem

The concerns echo those raised by other sectors affected by the EPR scheme. Last year, the Department for Environment, Food and Rural Affairs (Defra) announced plans to review the high prices of materials such as glass under the scheme.

Packaging costs are a key issue across the drinks industry, with many producers struggling to absorb rising fees while maintaining sustainability commitments.

The BBPA has urged the government to work with industry stakeholders to find solutions that balance environmental goals with economic realities. It has also called for greater clarity on how the fees are calculated and used, arguing that a more collaborative approach could help minimise financial impact while achieving the scheme’s recycling targets.

The drinks industry has already raised the alarm about the EPR scheme’s implications for glass packaging. As previously reported by db, Defra’s review of glass prices reflects wider concerns about the affordability of meeting sustainability targets without harming businesses.

With the first payments under the EPR scheme expected this year, the BBPA is pressing for swift government action. Without changes, it warns, the fees could prove unsustainable for many breweries and pubs, compounding the challenges already facing the hospitality sector.

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