Extended Producer Responsibility – hospitality sector in focus

Spotlight is on EPR and how businesses will be impacted during implementation of The Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024. Concerns have been raised that the 2024 Regulations will have unfair and unforeseen economic impacts on the hospitality sector. Key criticism has been directed towards the definition of “household packaging”, and the disproportionately high fees for glass packaging. 

EPR is based on the “polluter pays” principle. It aims to reduce the environmental impact of packaging by holding producers accountable for their packaging throughout the life cycle of a product.  

The 2024 Regulations largely came into force on 1 January 2025 and apply to all UK organisations that import or supply packaging (“producers”). Producers were required to register and submit data for the first year of the scheme on 1 April 2025. EPR fees based on submitted data will apply to large producers, with first invoices to be issued in October 2025.

Household packaging

When any packaging meets the definition of “household packaging” fees are payable under EPR.  Let’s “unpack” the definition:  

• Packaging is defined broadly and split into three categories – primary, secondary and tertiary.  

• Primary packaging constitutes a sales unit to the final user or customer. The definition of “household packaging” includes all primary packaging.  

• There are two strict exceptions to “household packaging”:  

1. 1. A business/public institution is the end user OR all packaging is removed. 

1. 2. The product is for business use only AND will not end up in a household or public bin. 

The government has produced guidance on how to assess household and non-household packaging. Extended producer responsibility for packaging: how to assess household and non-household packaging - GOV.UK  

As currently worded wine or spirits sold by the bottle in hospitality venues do not fit within the exceptions*. Both are reasonably likely to be consumed in hospitality venues, but also by consumers at home – meaning bottles are not for “business use only”. Additionally, for venues to ensure “all packaging is removed,” drinks need to be served to the end consumer already poured (i.e. in a glass, outside the bottle).  

*Arguably, if businesses adopt a “decanter only” rule for wine service, the exceptions might apply. Wine served in a decanter would be the same as wine served by the glass – with all packaging removed. However, this is not a practical solution for most venues, where product authenticity is demonstrated by service by the bottle.

The problem with this is that hospitality venues already pay commercial recycling fees, which means double payments will apply to the industry when EPR fees are due, as suppliers pass on the cost.  

Base fees

Much awaited 2025 base fees were recently published, and further details on how fees will be used to produce invoices will be shared soon. Extended Producer Responsibility for Packaging: 2025 base fees - GOV.UK

The base fee comprises the main cost for producers, and fees are based on the weight per tonne of different packaging materials.  

In its current form, costs of EPR fees for glass have been critiqued as disproportionately high, which risks producers choosing alternative, less recyclable materials. This is another area of concern for the hospitality and beverages industry, given the high use of glass packaging for drinks.  

Ultimate takeaways

The government has agreed to work with the hospitality industry to explore solutions in line with proposals put forward by UK Hospitality last year. These include an exemption for hospitality businesses from EPR charges. However, the lack of concrete timeframes for changes, or a decision on any alternative approach, means hospitality businesses are left with uncertainties and potential costs to pay in 2025. 

Regardless of the slow progress to rectify concerns, EPR is here to stay. With the EPR scheme administrator, PackUK, having issued its interim strategy, businesses in the hospitality industry should closely monitor how ongoing developments may affect them. 

TLT’s thoughts

Impacts of EPR have rightly caused concern in the hospitality industry. The application of the current definition of household packaging is a problem because it results in potential double payments for the hospitality sector. Whilst the government has agreed to find a solution, slow progress means businesses need to comply with the current framework.  

If businesses have any questions about how EPR might apply to them, get in touch with TLT’s Regulatory team.

Written by: Francesca Chapman and Kerry Gwyther

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at July 2025. Specific advice should be sought for specific cases. For more information see our terms and conditions.