Welsh Government appoints operator for controversial bottle return scheme

Mark Mansfield

The Welsh Government has appointed the organisation that will run its Deposit Return Scheme following months of uncertainty over how the system will operate alongside schemes elsewhere in the UK.

Exchange for Change will become the Deposit Management Organisation for the Welsh scheme, which is due to launch in October 2027.

The appointment is significant because Welsh drinks companies had urged ministers to select Exchange for Change, which is also overseeing schemes in England, Scotland and Northern Ireland.

However, Wales will retain its controversial decision to include glass drinks containers, unlike the schemes elsewhere in the UK.

Under arrangements announced by the Welsh Government, plastic, metal and glass containers will be included from the outset, but special transitional arrangements will apply to glass for four years.

During that period, glass drinks containers will not have to carry the scheme’s labels and will have a zero pence deposit – meaning consumers will initially pay no deposit on them.

Cabinet Minister for Rural Resilience and Sustainability Llŷr Gruffydd announced the appointment in a written statement.

He said: “Today, I am pleased to announce the appointment of Exchange for Change as the Deposit Management Organisation for the Deposit Return Scheme for drinks containers in Wales.

“The Scheme will include plastic (PET), metal and glass drinks containers from day one, but in line with the Deposit Scheme for Drinks Containers (Wales) Regulations 2026 a four-year transition period will apply to glass drinks containers, during which glass drinks containers will be exempt from labelling requirements and carry a zero pence deposit.”

The decision follows pressure from some of Wales’ largest drinks manufacturers over both the choice of operator and the inclusion of glass.

Last month, 12 Welsh drinks companies, including Brains Brewery, Radnor Hills and Brecon Carreg, wrote to Mr Gruffydd urging him to appoint Exchange for Change.

They argued that using the same organisation as the rest of the UK would reduce the risk of Wales being left without a fully operational system when the schemes launch in October next year.

The companies also urged the new Plaid Cymru Welsh Government to reconsider its approach to glass.

Wales’ scheme had been developed by the previous Labour administration and differs from those planned in England, Scotland and Northern Ireland, which will initially cover plastic bottles and metal cans but not glass.

Industry representatives have warned that a separate approach could increase costs, complicate labelling and distribution and reduce the range of products available in Wales.

The drinks companies also pointed to Wales’ existing record on glass recycling, saying 92% of household glass was already collected for recycling.

The Welsh Conservatives have also opposed a separate Welsh system and called for a common UK-wide approach.

The new government’s four-year transition period for glass means the material will technically form part of the Welsh scheme from its launch but will initially operate differently from plastic and metal containers.

Litter

Mr Gruffydd said the appointment followed a process to identify an organisation capable of establishing and operating the scheme alongside producers, retailers and councils.

He said: “By applying a deposit which is redeemed when drinks containers are returned, the scheme will tackle litter whilst supporting the collection of high-quality recycled materials.

“In turn, the DRS will help provide a pathway towards the roll-out of reuseable drinks containers in Wales.”

Exchange for Change will now work with the Welsh Government and other organisations to establish the network of return points, collection and processing infrastructure, producer registration and other systems required before the October 2027 launch.

Mr Gruffydd added: “I look forward to working with Exchange for Change and our delivery partners as we work to establish a DRS that works for Wales, and with those schemes being implemented in the other nations of the UK.”

The Welsh Government says the longer-term intention is to use the scheme to move beyond recycling and encourage greater use of reusable drinks containers.

Milestone

In response to the announcement today, British Soft Drinks Association Director General, Andy Bagnall, said: “The appointment of Exchange for Change in Wales means a single Scheme Administrator across the United Kingdom – a crucial milestone in delivering a successful Deposit Return Scheme by October 2027 – but there is now no time to lose on implementation.

“With little more than a year until go-live, it is welcome that Exchange for Change can work with the Welsh Government and stakeholders across the supply chain to establish the conditions for delivering the scheme in Wales in a way that avoids unnecessary cross-border complexity.

“However, while preparations are already well advanced for launching the Deposit Return Scheme in October 2027 for England, Scotland and Northern Ireland, delivering the scheme in Wales within such a short timeframe means there can be no further delays. Wales’ decision to include glass from day one also creates significant additional operational complexity, and the Welsh Government must continue to be realistic about what’s possible in the time.

“We look forward to working constructively with Exchange for Change, the Welsh Government and partners across the supply chain to address these challenges and deliver a Deposit Return Scheme in Wales that increases recycling, reduces litter, and works for consumers, businesses and the environment.”

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