Could the Deposit Return Scheme timeline change?

Leaders from Britain’s drinks industry have allegedly written to the government for assurances there are no plans to implement the DRS (Deposit Return Scheme) earlier than 2027, as currently outlined.

The scheme, which was left out of Labour’s manifesto, has been a source of outrage and bafflement over the past few years, with communication being called out as “extraordinarily poor”, and with businesses in Scotland threatening to sue the Scottish government in 2023 for failing to bring the scheme to fruition that summer (delaying until 2025) at great expense to those who had been preparing for its arrival.

In May this year the Conservatives, in a joint policy statement, confirmed a further delay to the scheme across nations in order to give those affected more time to prepare, and to allow breathing space for consumers and producers to understand what DRS will involve, while taking into account devolved waste and recycling policies.

At the time, the government said plastic PET (polyethylene terephthalate) drinks bottles and metal drinks cans sized 150ml to 3litres would be in scope across the UK and therefore exempt from disposal fees and labelling obligations, while the position on glass bottles would be set out by each nation individually.

Speaking in May, Karen Betts, CEO of the Food and Drink Federation said it was critical for UK governments to work closely together to ensure the scheme is “easy to use and understand, operating under the same rules and with the same labels across the four nations. A consistent, UK-wide approach is the best way to ensure value for money, and to drive up the UK’s disappointing recycling rates.”

This week the timeline of the DRS was thrust into the spotlight as Daisy Cooper, Liberal Democrat MP for St Albans, posed a question to the secretary of state for environment, food and rural affairs, asking whether he had plans to introduce the DRS before 2027.

In a circular reply Mary Creagh, economy minister, replied that yes, the government is committed to creating a roadmap to a zero-waste economy and to “a future where we keep our resources in use for longer; waste is reduced; we accelerate the path to Net Zero; we see investment in critical infrastructure and green jobs; our economy prospers; and nature thrives.”

She went on to say Labour was reviewing its suite of packaging reforms, with work ongoing with devolved counterparts, industry and other stakeholders to “determine the next steps for the Deposit Return Scheme”, and with an update from the house expected “in due course”.

The note has attracted mixed reactions from industry.

Jim Bligh, director of corporate affairs and packaging at the Food and Drink Federation, said it was good to see the government committing to putting a DRS in place as part of plans for a circular economy. “This means that drinks containers will be able to be recycled and used again more efficiently and easily, which is good news for the environment, companies and consumers. It’s critical that the UK’s governments now work closely together to ensure the scheme is easy to use and understand, operating under the same rules and with the same labels across the four nations,”  he said. “A consistent, UK-wide approach is the best way to ensure value for money and to drive up the UK’s disappointing recycling rates.”

There is a need to be cautious though, says the BRC’s director of food and sustainability, Andrew Opie, who believes any change to the timeline now will have a serious impact, and that, until any changes are confirmed, those in industry should continue to work towards a start date of October 2027.

“Given the pause for the election, the existing timelines are already very tight for the introduction of a multi-billion pound DRS scheme,” he said. “We have learnt from Scotland that DRS cannot be rushed, and retailers need sufficient time to make changes in store, and for all the logistics to be in place.”

Andrew urges the government to “work with us to agree a practicable implementation timeline, rather than risk the kind of arbitrary deadline that led to the costly failed DRS scheme in Scotland.”

Andy Slee, SIBA’s CEO, agrees more time is needed, and there is still much to be arranged and discussed. He said SIBA is committed to the principle of a scheme that works for small independent breweries and consumers, but noted producers will need at least 18 to 24 months from the point that decisions are made for a Deposit Return Scheme to be successful.

“Currently there are a mountain of issues for the government to address, including passing the regulations, appointing the Deposit Management Organisation, and agreeing the rules and arrangements before meaningful decisions are made and before any small producer can even begin to prepare,” Andy said.

“We still have a situation where the four nations cannot agree to the same container types, with Wales the only nation to include glass. Given that the Scottish DRS had to be abandoned, the Government should also learn the lessons from that. Under these circumstances it is very challenging to even meet the existing timeframe of 2027 without considering an earlier timetable.”