Synopsis
These regulations came partially into force on 26 March 2026. The scheme is due to operate from 1 October 2027.
A deposit will be charged when a drink in a qualifying bottle or can is supplied. This deposit will be refunded on return of the container.
Unlike elsewhere in the UK, the Welsh scheme will also cover glass bottles, but no deposit will be charged on these containers until 30 September 2031.
Summary
The Deposit Scheme for Drinks Containers (Wales) Regulations 2026 came partially into force on 26 March 2026. The scheme is due to operate from 1 October 2027.
This legislation applies in Wales only, although similar deposit return schemes are being introduced in England, Scotland and Northern Ireland. The schemes are intended to be interoperable across the UK.
What will change?
A deposit will need to be charged when a drink in a qualifying bottle or can is supplied. The amount of this deposit has yet to be confirmed.
The scheme will apply to closed drinks bottles and cans made from polyethylene terephthalate (‘PET’) plastic, steel, glass or aluminium, which contain between 150ml and 3 litres of liquid.
When a qualifying bottle or can is returned to a return point operator or take-back service provider (a ‘scheme collector’), a refund will be provided.
Deposit refunds may be declined when the returned item cannot be identified as qualifying or the item is soiled, not empty, not intact, contains drinks the scheme collector would not supply for faith or belief reasons or a disproportionate number of items are being returned given the average number supplied to consumers in single transactions. The lid will not need to be supplied or attached for a refund to be granted. Refunds may also be declined when the scheme collector cannot identify the container as a returnable item, including where a scheme logo or return code is absent.
Wales: Differences with other UK schemes
A key difference from the English, Scottish and Northern Irish deposit return schemes is the inclusion of glass drinks containers.
In the period between 1 October 2027 and 30 September 2031, glass will be included within the scheme but a zero (no) deposit will apply. Additionally, scheme logos or return codes are not required on glass containers during this period.
The legislation includes requirements on the reuse of returned containers, which will come into force on 1 October 2030. Reuse targets on the DMO will apply to a proportion of the collected return items from 2031.
Scheme producers
Persons established in the UK who manufacture container drinks, import them or fill drinks to order (‘scheme producers’) will need to register with the Deposit Management Organisation (DMO). Registration fees will be payable.
Qualifying products will need to hold the scheme logo and a scheme return code.
Scheme producers must pay the DMO the amount of deposits equivalent to the number of containers supplied. This payment will be required at intervals set by the DMO.
Scheme producers will be required to maintain records of qualifying drinks supplied, including for low volume products. Records must be maintained for seven years.
Low volume products
Low volume products will be exempt from deposit financing and scheme labelling duties. To benefit from this exemption, these products must be registered with the DMO as a low volume line.
Scheme producers may register low volume lines with the DMO where no more than 6,250 containers in this line will be supplied in the first year containing the same drink. In subsequent years a 5,000 container limit applies.
Supplier duties
The deposit must be charged when qualifying container drinks are supplied.
Container drinks may only be supplied if:
The above duties do not apply to registered low volume products. Where supplied, information on low-volume products must be provided or displayed. This information must include a statement that a deposit is not required on low volume products and that refunds are not payable for the associated containers.
Suppliers must also provide or display information on the scheme, unless the supplier is an ‘opted-out’ premises or items are supplied for immediate consumption on the premises. Information must also be provided where drinks are offered for supply online or in publications. Information on registered low volume products, where supplied, must also be provided or displayed.
Suppliers will be required to provide relevant information when requested by the DMO.
Opted-out premises
Where qualifying container drinks are supplied for immediate consumption on any mixed retail or on-sale premises, the supplier may decide to ‘opt-out’ of charging a deposit.
Opted-out premises must display opt-out information. This information must include a statement that a deposit is not required on container drinks for immediate consumption and a request that empty containers are not removed from the premises.
Scheme collectors: Mandatory return points
Groceries retailers supplying qualifying drinks are required to operate return points on their premises unless an exemption applies. Information on returns must be displayed. Refunds must be provided for returned items.
The definition of ‘groceries retailers’ excludes coffee shops, premises which primarily prepare food for consumption off the premises, hospitality venues (such as bars or restaurants), indoor attractions, recreational facilities (such as gyms) and retail premises on the grounds of schools, nursery schools, academies, higher education institutions or hospitals.
Hospitality operators may be required to operate return points where drinks are sold for off-site consumption and/or deposits are charged.
Mandatory return points must be registered within the DMO. Return point operators will receive a handling fee to cover the associated costs.
Scheme collectors: Voluntary return points
Voluntary return points may be operated, where registered and authorised with the DMO and the requirements in Schedule 4 are met. The DMO may also operate return points itself.
Mandatory return point exemptions
Small groceries retailers in urban areas (retail space below 100m2) are exempt from the mandatory return point duty. Return points may still be operated by these premises on a voluntary basis.
Other exemptions from the duty to operate return points are subject to Schedule 3. These exemptions may be registered on the basis of proximity to other return points and/or the location, layout, size, design or construction of the premises. These exemptions must be approved by the DMO.
Exempt premises must display information including why a return point is not operated and the location of the nearest return point.
Scheme collectors: Take-back schemes
Take-back services may be operated by scheme retailers who are appropriately registered with the DMO. These services will collect returnable items from consumers at any location other than scheme retailers and provide refunds.
Information must be provided or displayed on take-back services offered.
Collections from return points, suppliers and take-back services
The DMO is required to collect all returnable items from return point operators and all refund items from on-sale premises or mixed retail premises. The DMO must also collect or accept returns of items accepted by take-back services. All collected items must be recycled and reuse targets are expected to apply from 1 October 2030.
The DMO will pay each scheme retailer and scheme collector the deposit amount for each returnable or refund item collected or accepted. A handling fee will also be paid to return point operators.
Collection targets will apply to the DMO from 2028. An initial target of 70% will rise to 80% in 2029, 80% in 2030, 85% in 2031 and 95% in 2032 and every subsequent calendar year.
Reuse targets will apply to the DMO from 2031. In 2031, of the 85% of refund items collected, at least 5% must be capable of reuse. The reuse target will rise to 15% of the 95% of refund items collected in 2032.
From 2030, at least 85% of the refund or return items made wholly or mainly of PET must be collected. A target of at least 85% of items made from all other in scope material also applies from 2030.
Overseas schemes
The DMO may recognise schemes established outside the UK (‘overseas schemes’) where these are deemed equivalent to a deposit scheme. Recognition enables containers subject to each overseas scheme to be returned to UK scheme collectors.
Other exclusions
These regulations will not apply to export shops (e.g., duty-free shops) where the goods are supplied to passengers without duty.
Greenspace subscribers receive full monthly updates summarising new and forthcoming legislation applicable to their organisation.
To receive these free updates by email, please subscribe to our mailing list. For a free trial and demonstration of Greenspace or a quotation, please contact us by email.
