Wales has withdrawn from the development of an aligned deposit return scheme (DRS) across the UK, Deputy First Minister Huw Irranca-Davies has announced.
In a written statement, Irranca-Davies said that the Welsh Government could not proceed with a deposit return scheme (DRS) due to issues caused by the United Kingdom Internal Market Act 2020.
“In partnership with the UK and Devolved Governments, we have been working to initiate a joint process to appoint the Deposit Management Organisation for our respective schemes later this month,” the Deputy First Minister said.
“However, in the time available it has not been possible to address the issues to the operation of devolution caused by the United Kingdom Internal Market Act 2020, inherited by the UK Government from the previous administration.
“This unfortunately means that we are not able to proceed with the joint process or notify the WTO in relation to the scheme at this point.”
We are committed to delivering a DRS across England, Northern Ireland and Scotland, which will go live in October 2027.
In response to the announcement, a UK Government spokesperson said: “We are committed to delivering a DRS across England, Northern Ireland and Scotland, which will go live in October 2027.
“We will continue to work collaboratively with the Devolved Governments and industry to ensure our scheme works for businesses and consumers, while creating thousands of green jobs, driving investment into new infrastructure and moving towards a circular economy.”
The announcement is likely linked to the Welsh Government’s intention to include glass as part of the country’s scheme.
The Scottish scheme collapsed in 2023 after the UK Government declined a request for full exclusion from the Internal Market Act, which meant that Scotland could not include glass in its DRS.
In October, Circular Economy Minister Mary Creagh confirmed the DRSs in England and Northern Ireland will include polyethylene terephthalate (PET) plastic, steel, and aluminium drink containers, but not glass.
What has been the reaction?
British Soft Drinks Association Director General, Gavin Partington, said: “We regret the Welsh Government’s decision which undermines efforts to deliver an aligned DRS across the UK and help the move towards a circular economy.
“We remain committed to a DRS for cans and PET delivered by October 2027 and will continue to work with governments to achieve this.”
Jenni Hume, UK and Ireland Director at Reloop said: “Reloop has long supported the Welsh Government’s ambition for a DRS that includes glass and reuse as that has the most environmental benefits.
“We understand the complexities facing the Welsh Government and frustrations that the UK Government would not work with the Welsh Government to achieve this.
“It is now up to Defra, Daera, Scottish Government and industry to ensure that the DRS moves along at pace for England, Northern Ireland and Scotland with no further delays.
“We also hope to see clarity and tight timelines from Welsh Government imminently.”
Jane Martin, CEO of City to Sea said the DRS is turning into “utter chaos”.
“After flip flopping around on whether glass should be included, we have now successfully lost the entire Welsh nation,” Martin commented.
“A DRS which includes glass, plastic and aluminium is not a contentious issue amongst the public, with recent data showing that 77% agree the government should introduce an ‘all in’ system. It now just seems to be policymakers who can’t agree on that view.
“With both Wales and Scotland backing a glass inclusive DRS, Labour needs to get on board to stop the scheme from crumbling all together.”
The Natural Source Waters Associations (NSWA) said it was “disappointed” by the Welsh Government’s decision.
“This decision will significantly weaken the impact of the introduction of DRS on tackling litter and promoting a circular economy, both across the UK and in Wales,” the statement read.
“It will create cross border issues for the scheme: confusion and frustration among consumers, the risk of fraud, and uncertainty for producers and retailers.
“The NSWA remains committed to a DRS for cans and PET plastic bottles established by October 2027 and will continue to work with Governments to achieve this.”
Welsh Government committed to DRS that will deliver for Wales
In his statement, Deputy First Minister Huw Irranca-Davies said the Welsh Government remain committed to bringing forward a DRS which will “deliver for Wales” by supporting the transition to a circular economy.
Irranca-Davies said they will continue engaging with industry to develop a scheme that supports the transition to reuse for all drinks containers, including glass.
The Deputy First Minister said Wales was in a unique position of implementing a scheme in a nation with high recycling rates – Wales achieved a 65.7% in 2023.
To develop a DRS that will benefit Wales requires an approach that looks beyond recycling and supports the transition to reuse, Irranca-Davies said.
The Deputy First Minister also emphasised that the introduction of a DRS must build on and not detract from Wales’s progress.
