Wales Launches Consultation on Deposit Return Scheme Proposals for 2027

The Welsh Government has opened a consultation on plans for a Deposit Return Scheme (DRS), scheduled to begin in October 2027. The scheme will apply to both single-use and reusable drinks containers and will be operated by a newly established Deposit Management Organisation (DMO).

While the Welsh government sees the introduction of a DRS as a further step towards leadership in sustainability and circular economy practices, many experts in the glass sector have raised concerns. In particular, industry voices have questioned the viability of having differing DRS schemes across the UK’s borderless nations, warning of potential negative impacts on the UK glass industry and added complexity for producers and recyclers.

Under the proposals, consumers will pay a small deposit when purchasing drinks in containers such as plastic bottles, glass bottles, or cans. This deposit will be refunded when the empty container is returned to a designated collection point.

Returned containers will either be reused – cleaned and refilled – or recycled into new products, ensuring valuable materials remain in circulation for as long as possible. The scheme is expected to cover containers from 150ml up to three litres, made from plastic, aluminium, steel, or glass.

In contrast to the proposed UK-wide scheme, Wales plans include glass bottles. However, at the outset no deposit will be charged on glass, with the aim of encouraging higher rates of glass collection and recycling across the country.

The level of the deposit is still to be determined. Internationally, some schemes apply a flat rate per container, while others adjust deposit levels according to size, material, or whether the container is reusable or single-use.

The Welsh Government has tasked the new DMO with reviewing best practice from other countries, recommending the most effective approach for Wales, and monitoring deposit levels to ensure they remain fair for both businesses and consumers.

According to government analysis, the proposed scheme could deliver substantial environmental and economic benefits. By keeping containers in circulation within Wales, reliance on imported raw materials would be reduced, and new employment opportunities created in areas such as collection, sorting, and container cleaning.

Initial modelling suggests reuse systems alone could support up to 13,000 jobs in Wales, generate savings of up to £570 million per year, and provide businesses with greater access to high-quality secondary materials. These estimates remain subject to review but highlight the potential scale of the scheme’s impact.

The Welsh Government is now seeking views on the design and delivery of the scheme from producers, industry and other stakeholders. The consultation is open until 10 November 2025 and invites feedback on areas including:

• Whether deposit fees should differ between single-use and reusable containers.
• How reusable bottles should be returned, for example through crates or boxes.
• How small businesses can be supported under the scheme.
• Whether the DRS should expand to include products beyond drinks.
• The best approach for phasing in glass containers.

Industry reactions to the consultation have been mixed, with particular debate raised focused on the inclusion of single-use glass and the implications of Wales pursuing a different scheme to the rest of the UK.

The British Retail Consortium (BRC) has questioned the effectiveness of the approach. Andrew Opie, Director of Food and Sustainability at the BRC, said: “…we are not convinced by the current proposals for single-use glass. They risk adding unnecessary costs without delivering clear benefits for consumers or the environment. It would make far more sense [to] separately explore how we can expand the use of reusable glass containers, with industry already proposing a large-scale trial as an alternative.”

The Wine and Spirit Trade Association (WSTA) has also raised concerns about the potential impacts of Wales pursuing a different approach to the rest of the UK. Their Chief Executive, Miles Beale, commented:

“The Welsh Government’s proposal for a separate and different Deposit Return Scheme in Wales, one that includes glass, is concerning. It risks undermining an existing recycling system that is ‘best in class’ and creating new and significant market distortions. We believe this new approach, which lacks clarity as to how it is funded, would not only fail to improve on current high collection rates, but will also add unnecessary costs for Welsh businesses and consumers.”

The consultation is an important opportunity for producers and the recycling sector to share their views. Many across the industry are emphasising the importance of aligning DRS design across the UK to avoid unnecessary costs, complexity, and disruption to existing high-performing recycling systems.

You can find out more and access a copy of the consultation document here.