People in Wales could be forced to pay an extra 50p for drinks sold in glass bottles unless the new Welsh Government makes changes to a controversial recycling scheme, industry leaders have warned.
Deposit return scheme set for UK launch
A deposit return scheme (DRS) is scheduled to launch across England, Scotland, and Northern Ireland in October 2027, covering plastic bottles and metal cans only. Under the scheme, consumers receive a refund when they return empty containers to designated collection points, such as supermarkets, aiming to reduce waste and boost recycling rates.
In Wales, the previous Labour government had intended to include glass bottles in the scheme, raising concerns about a different system operating in different parts of the UK. However, industry leaders now say that time is running out and any further delays could prevent Wales from having a functioning scheme when the rest of the UK goes live.
Fraud risks and cost implications
According to the industry, unless all countries launch simultaneously, the scheme becomes vulnerable to fraud. They also argue that if Wales proceeds with including glass, producers would need to charge an additional 50p per glass bottle sold in Wales to cover the costs of collection and recycling infrastructure.
Under the DRS, which already operates successfully in countries like Germany, Sweden, and the Republic of Ireland, a redeemable deposit is placed on specific drinks containers. Consumers do not need a receipt or proof of purchase to claim their deposit, as long as the containers are in good condition.
Appointment of scheme administrator
Exchange for Change has been appointed as the scheme administrator for England, Scotland, and Northern Ireland, tasked with managing collection, recycling, and reverse vending machine operations. The organisation is waiting to hear if its application to also serve as the Welsh scheme administrator will be accepted.
The industry has committed £1 billion to prepare for the scheme's launch, according to a letter sent to rural resilience minister Llyr Gruffydd. The letter, signed by bosses of Welsh drinks manufacturers including Radnor Hills, Brecon Carreg, Brains, and Penderyn, as well as members of the British Soft Drinks Association, urges immediate action over what it calls “significant delays.”
Industry letter warns of consequences
The letter states: “We write to you as Welsh small and medium sized drinks manufacturers, all significant employers, to express our urgent concerns about the delayed appointment of a scheme administrator for the Deposit Return Scheme (DRS) in Wales. With just fifteen months until the DRS across the rest of the United Kingdom goes live in October 2027, there is no time left to deliver a scheme that is materially different in Wales. Going it alone would create significant challenges for our businesses and reduce choice for Welsh consumers.”
It continues: “The economics of the scheme mean requiring full scale collection infrastructure for glass in Wales could necessitate a producer fee as high as 50p for every single glass bottle sold in Wales, a figure exemptions would only push higher. The practical outcome of this will be higher prices for Welsh shoppers as well as fewer glass products on Welsh shelves, fewer viable Welsh businesses like ours, and fewer Welsh jobs. Independent Welsh business will be hardest hit trying to manage this challenge. To ensure Welsh citizens are not disadvantaged and left out of a world class scheme the Welsh Government must appoint the UK scheme administrator, Exchange for Change, as the Deposit Management Organisation for Wales and be pragmatic about glass by compromising and resolving that issue separately.”
Welsh Government response
The Welsh Government did not directly address the glass exclusion request but issued a statement: “This new government is committed to ambitious action on climate and nature, and a Deposit Return Scheme is an internationally proven way of delivering both environmental and economic benefits. The scheme must work for Wales, and we will continue to work closely with industry to ensure the arrangements are right. There is a formal process underway to appoint a Deposit Management Organisation. It is inaccurate to suggest there has been a delay, and it would be inappropriate to prejudge the outcome of the ongoing formal process.”
