Warning drinks could go up by 50p in Wales unless changes made to scheme

Under a deposit return scheme, people get money back when they return containers to places like supermarkets

People in Wales will have to pay 50p extra for drinks sold in glass bottles unless changes are made by the new Welsh Government to a controversial recycling scheme, it has been warned.

A deposit return scheme is due to start operating across England, Scotland, and Northern Ireland in October 2027, covering plastic bottles and metal cans only.

It means people get money back for taking recyclable containers back to a specified location, like a supermarket, and help cut down on waste.

In Wales, the previous Labour government also wanted the scheme here to include glass bottles and concerns were raised about a different system operating in different countries.

However, industry leaders now say time is of the essence and that any further delays could prevent Wales from having a functioning scheme when the rest of the UK goes live.

They say that unless the countries all go live at the same time, the scheme is open to fraud.

They also say that if Wales goes ahead with glass included in the scheme, producers would need to charge 50p per bottle on glass drinks sold in Wales.

Under the scheme, which operates in countries like Germany, Sweden and the Republic of Ireland, a redeemable deposit is placed on specific drinks containers that can be claimed when the item is returned to a collection point, such as a local supermarket.

People don’t need a receipt or proof of purchase, so anyone can return their own drinks containers or ones that they find, as long as they’re in good condition.

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

The industry is commiting a £1bn, it is said, to get ready for the scheme to launch. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here

A letter has been sent to rural resilience minister Llyr Gruffydd asking him to take action over what it calls “significant delays”. It is signed by bosses of Radnor Hills, Brecon Carreg, Brains and Penderyn, among other members of the British Soft Drinks Association.

The letter reads: “We write to you as Welsh small and medium sized drinks manufacturers, all significant employers, to express our urgent concerns about the delayed appointment of a scheme administrator for the Deposit Return Scheme (DRS) in Wales.

“With just fifteen months until the DRS across the rest of the United Kingdom goes live in October 2027, there is no time left to deliver a scheme that is materially different in Wales.

“Going it alone would create significant challenges for our businesses and reduce choice for Welsh consumers.

“The economics of the scheme mean requiring full scale collection infrastructure for glass in Wales could necessitate a producer fee as high as 50p for every single glass bottle sold in Wales, a figure exemptions would only push higher. The practical outcome of this will be higher prices for Welsh shoppers as well as fewer glass products on Welsh shelves, fewer viable Welsh businesses like ours, and fewer Welsh jobs.

“Independent Welsh business will be hardest hit trying to manage this challenge. To ensure Welsh citizens are not disadvantaged and left out of a world class scheme the Welsh Government must appoint the UK scheme administrator, Exchange for Change, as the Deposit Management Organisation for Wales and be pragmatic about glass by compromising and resolving that issue separately”.

The Welsh Government did not mention glass being exluded. But a spokesperson said: “This new government is committed to ambitious action on climate and nature, and a Deposit Return Scheme is an internationally proven way of delivering both environmental and economic benefits. The scheme must work for Wales, and we will continue to work closely with industry to ensure the arrangements are right.

“There is a formal process underway to appoint a Deposit Management Organisation. It is inaccurate to suggest there has been a delay, and it would be inappropriate to prejudge the outcome of the ongoing formal process.”