Exchange for Change Appointed to Run Welsh Deposit Return Scheme

The Welsh Government has appointed Exchange for Change as the Deposit Management Organisation (DMO) for Wales’ Deposit Return Scheme (DRS), providing businesses with greater clarity ahead of the scheme’s planned launch on 1 October 2027. 

Exchange for Change had already been appointed to operate the schemes in England, Scotland and Northern Ireland. Its appointment in Wales means that the same industry-led, not-for-profit organisation will now oversee DRS delivery across all four UK nations. 

However, important differences between the Welsh scheme and those elsewhere in the UK remain – most notably Wales’ inclusion of glass drinks containers. 

With just over a year until launch, producers, importers and retailers should expect implementation work to accelerate and should begin preparing for the data, financial and operational requirements that DRS will introduce. 

As the DMO, Exchange for Change will be responsible for establishing and operating the systems and infrastructure required to deliver the Welsh scheme.

The Welsh Government has confirmed that it will work with Exchange for Change and other delivery partners to develop:

• the network through which consumers will return empty drinks containers;
• collection and processing infrastructure;
• producer registration arrangements; and
• the operational systems required to run the scheme.

The DMO will sit at the centre of the scheme, working with drinks producers, retailers, local authorities, return-point operators and other organisations across the supply chain.

Its appointment is therefore a significant step, moving Wales from establishing the legal framework for DRS towards the detailed work needed to make the scheme operational.

Exchange for Change will now manage DRS delivery across England, Wales, Scotland and Northern Ireland. 

For businesses operating in more than one UK nation, having a single DMO should make coordination simpler in areas such as producer engagement, registration and the development of operational systems. It may also reduce some of the complexity that could have arisen from working with separate scheme administrators. 

However, a single DMO does not mean that every part of DRS will operate in the same way across the UK. Exchange for Change will still need to deliver the different legal requirements applying in each nation, including the distinct scope of the Welsh scheme. 

From 1 October 2027, Wales’ DRS will cover single-use drinks containers between 150ml and three litres made from:

• PET plastic;
• aluminium;
• steel; and
• glass.

England, Scotland and Northern Ireland will cover PET plastic, aluminium and steel containers within the same size range, but will not include glass.

Glass will be part of the Welsh scheme and collected from its launch. However, special transitional arrangements will apply for four years. During this period, glass drinks containers will:

• carry a zero-pence deposit; and
• be exempt from DRS labelling requirements.

The transition is intended to support interoperability with the schemes in the other UK nations while giving producers and retailers time to adapt. The Welsh Government also intends to develop the role of reusable drinks containers as part of its longer-term approach.

Further guidance will be needed to explain how glass collection will operate during this transitional period. Businesses selling drinks across UK borders will also need clear information about labelling, registration data and how products should be managed when the same drinks are supplied in Wales and elsewhere.

The appointment gives affected businesses a clearer organisation around which to plan, but many of the detailed arrangements are still being developed.

Businesses placing drinks on the Welsh market may have responsibilities relating to registration, reporting, producer fees, deposits and the labelling of eligible containers. Retailers will also need to prepare for requirements covering deposits, customer information and return points, subject to the relevant rules and exemptions.

Exchange for Change will now play a central role in turning the regulations into the practical processes businesses will need to follow.

Organisations should monitor forthcoming guidance covering:

• producer and product registration;
• data formats and reporting deadlines;
• producer fees and payment arrangements;
• how deposits will be collected, checked and refunded;
• labelling specifications;
• return-point requirements and exemptions; and
• how the Welsh scheme will interact with the schemes operating elsewhere in the UK.

Businesses should use the time before launch to:

1. Identify which drinks containers they place on the market in each UK nation.
2. Establish whether they supply glass drinks containers in Wales.
3. Review the packaging and product data they currently hold.
4. Identify which internal teams, suppliers and systems will be affected.
5. Monitor guidance from Exchange for Change and the relevant governments.
6. Build DRS requirements into future packaging, labelling and operational decisions.

Businesses operating across UK borders may require additional planning to accommodate the inclusion of glass in Wales while maintaining efficient supply arrangements throughout the UK.

Exchange for Change’s appointment removes a significant area of uncertainty and creates a common point of coordination for DRS delivery across the UK. 

The next stage will show how this coordination works in practice. With Wales retaining a different approach to glass and reuse, businesses operating across multiple nations will still need to understand and prepare for important differences. 

The direction is now clearer, but the timetable remains tight. Businesses that begin reviewing their products, data, systems and operational requirements now will be better prepared as further details emerge ahead of October 2027. 

Clarity will continue to monitor developments and provide updates as Exchange for Change and the Welsh Government publish further implementation guidance.