Wales was absent from the first round of waste contract awards for the UK’s forthcoming DRS, announced on 30 September 2026.
This follows delays in appointing a Deposit Management Organisation (DMO) for the nation.
Five companies were announced as successful bidders for logistics and processing contracts last month, covering England, Scotland and Northern Ireland.
Wales was not included in the original tender process because Exchange for Change had not yet been appointed as the DMO for the Welsh scheme.
A spokesperson for Exchange for Change said: “Wales was not included in the original tender process as Exchange For Change had not been appointed as the Deposit Management Organisation for Wales at that time.
“Now appointed, we are working to accelerate the programme plan where possible to bring Wales closer to the rest of the UK, and will share further information as soon as we are able to do so.”
The DRS is scheduled to launch across the UK in October 2027, with consumers paying a refundable 20p deposit on eligible drinks containers.
The five companies appointed to provide logistics and processing services are Suez, CIRQLR, Re.Group in partnership with Hargreaves Services, Bywaters and Re-Gen.
The contracts were awarded on a regional basis:
- Suez – the North-East, North-West, West-Central and South West regions of England
- CIRQLR – the East Central, South and South East regions of England
- Group – Scotland, working in partnership with Hargreaves Services plc
- Bywaters – London
- Re-Gen – Northern Ireland
It is not yet clear when Welsh waste contracts will be tendered or how they will fit into the wider network.
Delays to Welsh DMO appointment
Exchange for Change was appointed as the DMO for Wales on 20 August 2026, after an earlier application process failed to result in its selection.
The organisation, which had already been appointed to oversee the schemes in England, Scotland and Northern Ireland, was understood to have been the sole applicant during both rounds of the Welsh selection process.
The Welsh Government reopened applications in April, with submissions closing on 2 June. The appointment was subsequently confirmed in August, leaving just over a year before the planned launch.
The delay has added to concerns about whether Wales will be ready to introduce its scheme alongside the rest of the UK.
In a statement to the Senedd on 22 September, the Welsh Government said Exchange for Change could “hit the ground running” because it was already delivering schemes elsewhere in the UK.
The government said its focus was on implementing the scheme by October 2027 and supporting businesses, delivery partners and consumers to prepare for launch.
Glass adds complexity to Welsh scheme
Wales’s DRS will also differ from the schemes in the other UK nations by including glass drinks containers from the outset, alongside PET plastic bottles, aluminium cans and steel cans.
Containers between 150ml and three litres will be covered. Glass will be subject to a four-year transition period, during which it will carry a zero-pence deposit and be exempt from DRS-specific labelling requirements.
The inclusion of glass creates additional considerations for the design and delivery of the Welsh scheme, including how containers will be collected, transported and processed, and how the system will operate alongside schemes in neighbouring English regions.
Fraud risks if Wales falls behind
Industry representatives have previously warned that Wales failing to launch its DRS alongside the rest of the UK could expose the wider system to fraud.
In May, the British Soft Drinks Association (BSDA) warned that the UK could face up to £300m in annual fraud if the Welsh scheme was not operational when the other nations launch in October 2027.
The association said a gap between the schemes could create opportunities for cross-border fraud, including drinks containers bought in Wales without a deposit being returned in England for a refund.
Industry figures have also raised concerns that differences in the scope of the schemes, particularly Wales’s inclusion of glass, could create further opportunities for fraud if the systems are not fully interoperable.
The BSDA has argued that close alignment between the four nations is important to ensuring the scheme operates effectively and does not create additional costs for producers and retailers.
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