Wales moves closer to launch of deposit return scheme

The Welsh Government has taken a significant step towards introducing a national Deposit Return Scheme (DRS), with new regulations formally laid before the Senedd.

The Deposit Return Scheme for Drinks Containers (Wales) Regulations 2026, announced by Deputy First Minister Huw Irranca-Davies, set out the legal framework for a scheme designed to boost recycling, cut litter and accelerate Wales’ transition to a circular economy.

In a written statement accompanying the regulations, Mr Irranca-Davies described the move as “a major milestone.”

“This scheme enables the return of drinks containers for recycling and reuse,” he said. “It will build on our world-class recycling performance, tackle litter in our communities and help us reduce waste even further.”

He added that the policy “delivers on our commitment in Beyond Recycling and Net Zero Wales” and represents “another milestone on our journey towards ending throwaway culture.”

Under the proposals, the Welsh scheme will include PET plastic bottles, aluminium and steel cans, and — notably — single-use glass bottles from the outset. The inclusion of glass has been a defining feature of Wales’ approach, setting it apart from the scope adopted elsewhere in the UK.

Mr Irranca-Davies acknowledged that divergence required additional negotiation with the UK Government.

“We have always been clear that we need to progress a scheme which meets Wales’ needs,” he said. “In practice, this means a scheme that includes glass bottles in Wales.”

He confirmed that agreement had been reached on an exclusion from the UK Internal Market Act, enabling Wales to proceed with its broader scope.

“I am pleased to be able to confirm their agreement to that exclusion being brought forward,” he stated.

Subject to Senedd approval, the DRS will go live on 1 October 2027, aligning with launches planned across the rest of the UK. The scheme will apply to containers ranging from 150ml to 3 litres.

While glass bottles will be collected from day one, the regulations introduce a four-year transition period. During this phase, glass containers will be exempt from labelling requirements and will carry a zero-pence deposit, providing time for industry to adapt before full deposits are introduced.

Mr Irranca-Davies said the scheme also establishes “a clear pathway towards the roll out of reuse,” supported by industry-led pilots.

To ensure coordination with other nations, he has proposed the creation of a UK-wide implementation taskforce.

“To support the smooth delivery of the schemes across the UK, I have proposed… the establishment of an implementation taskforce to oversee interoperability,” he said.

Industry reaction has been broadly supportive, though not without caution.

Commenting on the regulations, British Soft Drinks Association Director General Andy Bagnall called the move “a big step forward.”

“This is a big step forward in establishing a UK-wide deposit return scheme,” Mr Bagnall said, noting that a unified system for aluminium cans and plastic bottles would benefit producers and consumers.

However, he warned that “granting an exclusion for single-use glass means challenges remain.”

Mr Bagnall urged the Welsh Government to “rapidly appoint a scheme administrator” and ensure glass is incorporated “in the most practical way possible.”

He also highlighted the need to address cross-border complexities.

“The Welsh Government must engage with industry to resolve the issues inherent in different schemes on either side of the border — including the risk of substantial fraud,” he said.

Despite those concerns, Mr Bagnall described the approach as “pragmatic,” adding that the soft drinks sector “will play its part so that, together, we can kickstart the circular economy, boost recycling and reduce litter.”

The regulations will now be scrutinised by Senedd Members.