Welsh Government withdraws from UK Deposit Return Scheme
Wales has announced its withdrawal from the UK-wide development of an aligned deposit return scheme (DRS), as confirmed by Deputy First Minister Huw Irranca-Davies.
In a written statement, Irranca-Davies explained that the Welsh Government could not proceed with a joint DRS due to challenges posed 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. 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 decision means Wales will not proceed with the joint process or notify the WTO at this stage. However, the UK Government remains committed to launching a DRS across England, Northern Ireland, and Scotland by October 2027.
A UK Government spokesperson said,
“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 likely reflects Wales’s intention to include glass in its scheme, aligning with its vision for a broader environmental impact. In contrast, the UK Government has excluded glass from the schemes in England and Northern Ireland, with Scotland’s attempt to include glass thwarted in 2023 due to lack of agreement on exclusions from the Internal Market Act.
Reactions have been mixed. The British Soft Drinks Association expressed regret over Wales’s decision, citing risks to alignment efforts and the move toward a circular economy. Industry leaders like Reloop’s Jenni Hume and City to Sea’s Jane Martin highlighted frustrations with delays and the need for clarity, with Martin calling the situation “utter chaos.” The Natural Source Waters Association warned of consumer confusion, fraud risks, and challenges for producers and retailers due to a fragmented approach.
Despite withdrawing from the joint process, Wales remains committed to a DRS that “delivers for Wales.” The Deputy First Minister emphasised the need for a scheme that supports the transition to reuse, particularly for glass, while maintaining the country’s high recycling rates—65.7% in 2023. This unique position allows Wales to explore a system that builds on its progress and supports broader sustainability goals.
Wales’s decision marks a significant divergence in the UK’s approach to tackling waste and fostering a circular economy, underscoring the complexities of aligning environmental policies across devolved nations.