Industry groups representing the UK drinks, retail and hospitality sectors have urged the Welsh Government to appoint a deposit return scheme (DRS) administrator before the May 2026 Senedd election, warning that delays could disrupt the planned UK-wide rollout of container recycling systems.
In a joint letter to First Minister Eluned Morgan, seven trade associations said an early appointment is needed to ensure Wales can implement its deposit return scheme by October 2027, the same target date planned for schemes in England, Scotland and Northern Ireland.
The organisations include the British Retail Consortium, the British Soft Drinks Association, the British Beer and Pub Association, UKHospitality, the Federation of Independent Retailers, the Food and Drink Federation and the Natural Source Waters Association.
Together they represent more than 9,000 businesses across the drinks supply chain and retail sector.
The industry intervention follows the Welsh Government laying regulations in February 2026 to establish a national deposit return scheme for drinks containers. The policy aims to improve recycling rates, cut litter and support the circular economy.
Pressure to appoint scheme administrator
Under the proposed system, a scheme administrator — formally known as a Deposit Management Organisation — would oversee operations such as collecting containers, managing refunds and coordinating recycling infrastructure.
Industry groups argue that appointing the administrator soon is essential for operational planning, procurement and infrastructure development ahead of the 2027 launch. Without this step, businesses could face uncertainty about how the Welsh deposit return scheme will function.
The associations also warn that if Wales falls behind the rest of the UK timetable, it could create vulnerabilities in the wider system. Industry estimates suggest that misalignment between schemes could expose the UK deposit return system to fraud risks of up to £300 million per year, particularly through cross-border movement of containers.
The timing is linked to the upcoming Senedd election scheduled for May 2026. During the pre-election period, governments typically avoid making major policy decisions or appointments that could be seen as politically sensitive.
Divergence over glass containers
One of the main differences in the Welsh deposit return scheme is the inclusion of single-use glass bottles alongside plastic bottles and metal cans.
Elsewhere in the UK, the deposit return schemes planned for England, Scotland and Northern Ireland will initially cover plastic bottles and aluminium or steel cans only. Wales has chosen to include glass containers as part of its environmental strategy.
Industry groups say this divergence could create operational complexity and additional costs for producers supplying the Welsh market. Wales represents about 4.6% of the UK drinks market, meaning manufacturers may need to run separate compliance systems for glass containers sold in Wales compared with the rest of the UK.
Retailers have also raised practical concerns. Reverse vending machines capable of accepting glass containers are typically larger and more expensive than those used for plastic bottles and cans, which may create challenges for smaller shops with limited space.
Recycling goals and UK-wide rollout
Deposit return schemes are widely used internationally to increase the collection of drinks containers. The model works by adding a small refundable deposit to beverage containers, which consumers receive back when returning the empty container.
More than 40 jurisdictions worldwide operate deposit return systems, with many reporting return rates above 85–90%. These schemes are designed to reduce litter and improve the quality of recycled materials.
Across the UK, producers are expected to invest more than £1 billion in infrastructure and operations for the deposit return scheme, including reverse vending machines, logistics networks and recycling capacity.
Industry bodies estimate the system could create around 4,000 jobs linked to the circular economy and waste management.
While the Welsh Government has aligned the start date of its deposit return scheme with the wider UK launch in October 2027, industry groups say early administrative decisions will determine whether the system can be implemented on schedule.
They have called for continued collaboration with government officials to address operational issues, particularly around the treatment of glass containers and cross-border alignment within the UK recycling framework.
