The Welsh Government has appointed Exchange for Change as its deposit management organisation for the Deposit Return Scheme (DRS) for drinks containers, following a procurement process. The same company will operate return schemes for plastic bottles and metal cans across the whole of the UK from October 2027.
Scheme details and deposit system
The scheme will include plastic (PET), metal and glass drinks containers from day one. Customers will pay a 20p refundable deposit when buying single-use plastic bottles, steel and aluminium cans. They will get the money back when they return the clean, uncrushed container to an approved return point. The scheme aims to help reduce littering and support the transition from recycling to reuse.
A four-year transition period will apply to glass drinks containers, during which time they will also be exempt from labelling requirements while carrying a zero pence deposit.
Implementation timeline and challenges
Exchange for Change was appointed to run schemes in England, Scotland and Northern Ireland (which will not include glass) back in May 2025, leaving Wales with a tight window of just over a year to implement the scheme. The drinks industry said that significant work remains to finalise implementation details to ensure the scheme can be delivered effectively in Wales.
Llŷr Gruffydd, Cabinet Minister for Rural Resilience and Sustainability, said: “The appointment follows a robust process to identify a deposit management organisation which will support the establishment of the scheme and work in partnership with producers, retailers, local authorities and other partners to successfully implement the DRS in Wales.
“By applying a deposit which is redeemed when drinks containers are returned, the scheme will tackle litter whilst supporting the collection of high-quality recycled materials. In turn, the DRS will help provide a pathway towards the roll-out of reuseable drinks containers in Wales. I look forward to working with Exchange for Change and our delivery partners as we work to establish a DRS that works for Wales, and with those schemes being implemented in the other nations of the UK.”
Industry reaction and cross-border complexity
Director general of the British Soft Drinks Association, Andy Bagnall, said: “The appointment of Exchange for Change in Wales means a single scheme administrator across the United Kingdom – a crucial milestone in delivering a successful Deposit Return Scheme by October 2027 – but there is now no time to lose on implementation.
“With little more than a year until its go live, it is welcome that Exchange for Change can work with the Welsh Government and stakeholders across the supply chain to establish the conditions for delivering the scheme in Wales in a way that avoids unnecessary cross-border complexity.
“However, while preparations are already well advanced for launching the Deposit Return Scheme in October 2027 for England, Scotland and Northern Ireland, delivering the scheme in Wales within such a short timeframe means there can be no further delays. Wales’ decision to include glass from day one also creates significant additional operational complexity, and the Welsh Government must continue to be realistic about what’s possible in the time.
“We look forward to working constructively with Exchange for Change, the Welsh Government and partners across the supply chain to address these challenges and deliver a DRS in Wales that increases recycling, reduces litter, and works for consumers, businesses and the environment.”
Investment and economic impact
Across the UK the soft drinks sector is contributing the majority of the more than £1bn committed to building collection infrastructure and systems. This investment is expected to support more than 4,300 jobs across the UK’s circular economy.
