Industry bodies representing the UK’s drinks manufacturing, retail and hospitality sectors have written jointly to the First Minister of Wales, urging the Welsh Government to appoint a deposit return scheme administrator before the Senedd elections in May, to support the circular economy, while stressing that careful consideration is needed in how glass is included in the scheme.
The letter was sent by the British Soft Drinks Association, the British Retail Consortium, the British Beer and Pub Association, UK Hospitality, the Federation of Independent Retailers, the Food and Drink Federation and the Natural Source Waters Association, which collectively represent more than 9,000 businesses across the affected sectors.
The intervention follows the Welsh Government securing a conditional exclusion from the UK Internal Market Act to include single-use glass in its deposit return scheme and laying the relevant regulations on 12 February 2026. While this marks significant progress towards delivering a successful UK-wide scheme for plastic bottles and metal cans, major operational and financial risks remain due to Wales’ divergent approach to glass.
Without swift appointment of a scheme administrator, there is a risk that Wales may not have a scheme operational when the rest of the UK goes live in October 2027. Industry analysis suggests this could expose the wider UK scheme to fraud risks estimated at up to £300 million per year.
Wales already has an impressive record on glass recycling, with 92% of household glass collected for recycling. The associations recognise the Welsh Government’s ambition to build on that success, including exploring options for reusable containers. However, including glass in the Welsh scheme potentially disrupts existing successful recycling systems, so the Welsh Government should proceed with caution to avoid unintended consequences for consumers, small businesses and the wider UK scheme due to the costs and inherent fraud risks of having different schemes on each side of the border.
Helen Dickinson OBE, Chief Executive Officer of the British Retail Consortium, said:
While we are pleased Wales will align its scheme on plastic bottles and metal cans with the rest of the UK, significant challenges and uncertainty remain around proposals to include single-use glass without a deposit, which will add costs and create potential fraud risks, without clear environmental benefit.
We will continue to work with the Welsh Government to resolve these issues and explore more effective alternatives, but it is vital that the Welsh Government appoints a scheme administrator as soon as possible to provide certainty for the industry.
Andy Bagnall, Director General of the British Soft Drinks Association, said:
Laying the regulations is a big step forward in establishing a UK-wide deposit return scheme, enabling a unified approach for plastic bottles and metal cans, although Wales’ inclusion of single-use glass in its scheme means challenges remain.
We look forward to the Welsh Government now rapidly appointing a scheme administrator and ensuring glass is included in the scheme in the most practical way possible, by keeping the required number of glass-enabled reverse vending machines to an absolute minimum.
The Welsh Government must also engage with industry to resolve the issues inherent in different schemes for glass on either side of the border – including the risk of substantial fraud – to remove the cliff edge in four years’ time when the transition period ends.
This pragmatic approach is the only way to deliver a workable scheme without unintended consequences for shoppers and small businesses. The soft drinks industry will play its part so that, together, we can kickstart the circular economy, boost recycling and reduce litter.
Members of the seven associations are investing more than £1 billion to establish a world-class deposit return scheme across the UK. The work is expected to create around 4,000 new jobs in the UK’s circular economy for plastic bottles and metal cans and provide a major boost to recycling infrastructure.
An effective and aligned Four Nations deposit return scheme represents a once-in-a-generation opportunity to transform recycling performance and cut litter. International evidence shows that a well-designed scheme can reduce litter by as much as 89% and increase recycling rates to above 90%, removing billions of plastic bottles and metal cans from the waste stream each year, as seen in the Republic of Ireland since its scheme for bottles and cans went live in 2024.
Requiring every retail store in Wales to host glass-enabled reverse vending machines would add significant cost and operational complexity. Machines capable of handling glass are more expensive and require more space than those designed solely for plastic bottles and metal cans. For many smaller shops, particularly convenience retailers, this would present serious practical challenges.
These additional costs would ultimately be borne by producers selling into Wales through higher scheme fees. With Wales accounting for just 4.6% of the UK drinks market, the financial burden of a more complex glass system could prove unviable for many manufacturers, especially small and medium-sized enterprises. Some businesses may have little choice but to withdraw certain products from the Welsh market, reducing choice for shoppers and increasing pressure on household budgets.
Emma McClarkin OBE, Chief Executive Officer of the British Beer and Pub Association, which last week launched its manifesto to support Welsh brewers and pubs, said:
The recent Internal Market Act decision and laying of the draft regulations was a significant milestone for introducing a deposit return scheme in Wales.
We particularly welcome the intent to maximise interoperability with the rest-of-UK scheme on plastic bottles and metal cans, and look forward to supporting alignment between the Four Nations.
We encourage the Welsh Government to build on this by appointing a scheme administrator and continuing to work with industry on a pragmatic approach so that costs do not become prohibitive for brewers selling beer in glass bottles in Wales.
This will help ensure successful delivery of a deposit return scheme that works for both Welsh consumers and local businesses, in turn unlocking the environmental benefits and economic opportunities that underpin the circular economy.
On behalf of the 9,000 businesses they represent, the seven associations remain eager to work constructively with ministers and officials in Cardiff to deliver a fully aligned deposit return scheme for plastic bottles and metal cans across the UK, while carefully exploring the most effective long-term solution for glass. With close collaboration and cautious implementation, it is possible to maintain Wales’ strong recycling performance, avoid cross-border distortions and fraud risks, and deliver a scheme that supports consumers, businesses and the environment.
Notes to Editors
- A UK-wide deposit return scheme is planned to go live across England, Scotland, and Northern Ireland in October 2027, covering plastic bottles and metal cans only
- In Wales, a deposit return scheme is also scheduled to launch in October 2027, covering plastic bottles and metal cans, but also glass bottles
- Exchange for Change has been appointed as the scheme administrator for the deposit return scheme in England, Scotland and Northern Ireland to manage collection, recycling, and reverse vending machine operations and is waiting to hear if its application to also be the Welsh scheme administrator will be accepted
- Industry is investing heavily to support a successful UK-wide rollout, with over £1 billion being committed by producers, including the soft drinks sector, to establish infrastructure and ensure readiness for launch
- The Welsh Government must approve DRS regulations before the scheme can operate
- The regulations also need to be in place before a scheme administrator can be appointed to manage and oversee the scheme in Wales
- The final business day of the Senedd is 27 March 2026, meaning time is of the essence
- Any delays could prevent Wales from having a functioning deposit return scheme when the rest of the UK goes live in October 2027, which could expose the wider UK scheme to fraud risks estimated at up to £300 million per year.
ENDS
