The Welsh government has launched an application for devolved powers to push ahead with a breakaway deposit return scheme, warning that if it is not given it will pull the plug on the scheme.
The move, which comes amid speculation as to whether Westminster will step in to block the proposals, comes with Wales also announcing it has begun the process to appoint a deposit management organisation (DMO) to run the scheme.
Last month, The Grocer reported speculation that Westminster was considering action under the Internal Market Act, which could derail Wales’ bid for a DRS including glass.
Failure to persuade Westminster to allow its plans, also including glass, was a key reason for the collapse of Scotland’s pioneering DRS scheme in 2023.
In a statement yesterday, Welsh deputy prime minister Huw Irranca-Davies said it was vital for the future of the scheme to ensure certainty for businesses that it was lawful and would not suffer the same fate as Scotland.
“This is crucial to the effective operation of all deposit return schemes across the UK,” he said.
“The Welsh government has therefore formally proposed an exclusion for the deposit return scheme in Wales to the United Kingdom Internal Market Act 2020 (UKIMA), noting that the scope of the scheme is fully within devolved competence.
“We have also been clear that should that exclusion as requested not be agreed, this would lead to the scenario where there would be no DRS in Wales, and as such an exclusion would be required for the schemes in other nations.”
The process to appoint a DMO in Wales comes with the Welsh government also refusing to back down over its plans to make a huge shift to reuse a fundamental part of its plan, despite huge opposition from retailers and suppliers.
Last week The Grocer revealed its radical plans to set mandatory reuse levels for drinks containers, as a key part of its DRS risks imposing costs on manufacturers that would “dwarf” that of EPR, according to the FDF.
Irranca-Davies said: “We have also listened carefully to their calls to commence the process to appoint the DMO as early as possible.
“This will provide the maximum time available for the implementation of the scheme following the DMO’s appointment. I am therefore very pleased to announce that the application process for the DMO will open tomorrow (Friday 28 November), with the deadline for applications being Friday 23 January 2026.
“The commencement of the application process is being done in parallel with the work to bring forward the regulations, which will be laid before the Senedd in February next year. Subject to the DRS regulations being approved by the Senedd, the successful applicant can then be appointed by the Welsh Ministers from March 2026.
“This approach mirrors that taken by the UK government in the development of their regulations and appointment of the DMO for England.”
He added: “With Wales already amongst the world’s best recyclers, it is vital that we draw from the world’s best schemes to ensure DRS will build on our already high recycling performance.
“Reusing materials through a DRS reduces the need to extract raw materials, supports containers to be used multiple times over and can therefore support producers to be more resource efficient, whilst also reducing litter and carbon emissions and saving energy.”
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