Supermarket bosses have written to the Environment Secretary urging him to delay the deposit return scheme, which is due to launch in 2027.
The Grocer reported that the letter, sent by the British Retail Consortium (BRC), said the deposit return scheme’s (DRS) October 2027 start date is “not feasible” because of food price inflation and the scheme’s “high infrastructure costs”.
A spokesperson for the Department for Environment, Food and Rural Affairs (Defra) said they remain committed to delivering a DRS in October 2027.
“We will continue to work closely with industry partners, the Scottish Government and the Department for Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland to launch the scheme,” the spokesperson said.
Last year, Wales withdrew from the development of an aligned DRS across the UK due to time constraints that prevented the UK Government from considering a request for an exclusion from the Internal Market Act.
In a statement given to Circular Online, Naomi Brandon-Bravo, Sustainability Policy Adviser at the BRC, said retailers are “committed” to implementing a DRS across the UK.
However, she continued that Wales’s withdrawal means retailers “have no certainty” on how to deliver a workable system for customers.
“The timetable to install tens of thousands of machines in grocery stores was already a massive logistical challenge costing retailers £2bn, on top of the £7bn in extra costs the industry is already grappling with in 2025,” Brandon-Bravo said.
“Investing those sums is a huge decision for any retailer and they will only do so when they are sure it will deliver for customers.”
Brandon-Bravo also said Wales’s decision creates a “significant fraud risk” as people could potentially purchase cans and bottles in Wales without paying a deposit and redeem them for cash across the border.
The statement concluded that committing to an “arbitrary date” risks delivering a scheme that fails businesses and customers.
After the announcement, Keep Britain Tidy issued a joint statement of support alongside a coalition of non-governmental organisations for “getting DRS done” regardless of the developments between the UK and Welsh governments.
Keep Britain Tidy also voiced frustration after the BRC’s letter was reported. The charity’s Chief Executive, Allison Ogden-Newton OBE, said: “The DRS was announced in 2018 and retailers have had more than enough time to get on board and prepare.
“The Irish scheme was rolled out in February 2024, just 26 months after regulations were published.
“There is no reason why our own timeline cannot be met, especially considering it features many of the same retailers and producers and allows for a much longer implementation period.”
