The refusal of the Welsh government to adopt the same rules for the forthcoming Deposit Return Scheme as England, Scotland and Northern Ireland is causing concern amongst shopkeepers, the Federation of Independent Retailers has warned.
From October 2027 a 20p deposit will be added to the price of every drink sold in a single-use container made from plastic, aluminium or steel and holding from 150ml to 3l. Consumers claim back the deposit when they return their bottles and cans.
Stores (with limited exceptions) that sell drinks in single-use containers will have to accept returns, either via manual take-back handled by cashiers, or automated ‘reverse vending machines’ (RVMs). Retailers will get either 3p or 5p for each container they take back, depending on whether they do so manually or via an RVM.
But while three of the four countries in the UK decided not to include glass containers in the scheme due to its already high recycling rates of around 92%, and the cost, weight, danger and complexity glass containers bring to returns, the Welsh government remains immovable in its stance that its scheme will include the material.
This means that if no countermeasures are introduced, fraudsters could buy glass containers with no 20p surcharge in England, Scotland or Northern Ireland, before returning them in Wales and fraudulently reclaiming the non-existent deposit back. Earlier in the year the British Soft Drinks Association estimated this loophole could be exploited to the tune of £300m a year.
Concerns also remain that RVMs capable of processing glass returns are significantly more expensive than those not handling the material, while retailers who opt not to spend thousands on an automated machine and instead process returns by hand risk injuries from broken glass.
The Federation of Independent Retailers has written to senior figures in the Welsh government expressing concern about a “lack of progress” in how its standalone scheme will integrate with the unified ones operating across the rest of the UK, with representative Mark Dudden saying clarification is “vital because Welsh retailers and other stakeholders require certainty so they can plan ahead for the adoption of DRS, which is due in 15 months”.
Dudden added that it is “essential for Welsh retailers that any DRS infrastructure has full interoperability with the rest of the UK so as to avoid fraudulent abuse of DRS”.
