Wales has become the only UK nation to incorporate glass into its deposit return scheme, and the Welsh government has now formally appointed Exchange for Change to manage the programme following an extended period of discussions centred on the inclusion of glass containers.
Exchange for Change, already selected to operate deposit return schemes across England, Scotland and Northern Ireland, will oversee Wales' scheme from its October 2027 launch date. The appointment concludes months of negotiations during which significant disagreements emerged between the Welsh government's expectations and what the operator proposed to deliver at the outset.
The delay in confirming an operator had prompted warnings from the drinks industry that the scheme's launch could be jeopardised. According to industry representatives reporting in June 2026, the decision remained outstanding and was creating pressure on the implementation timeline.
Llŷr Gruffydd, Wales' sustainability minister, described the appointment in a written statement as a significant milestone in advancing recycling and reuse across the nation.
What caused the delay in appointing an operator?
The Welsh government and Exchange for Change held extended discussions after fundamental disagreements surfaced regarding infrastructure requirements for handling glass. Officials had understood that the scheme would require approximately 3,500 reverse vending machines capable of processing glass when the DRS launched. However, Exchange for Change's initial proposal involved deploying only around 100 suitable machines across Wales at the outset, creating a substantial gap between the two positions.
Those involved in the negotiations identified this discrepancy as a critical obstacle to reaching agreement. When questioned about whether the Welsh government had adjusted its specifications for glass-handling machines, Gruffydd declined to discuss particular numbers, instead characterising the situation as part of an ongoing process.
We have to accept that we're on a journey here, he stated, noting that the quantity of return points would expand progressively.
The Welsh government had previously rejected Exchange for Change's bid in April 2026, then reopened applications with a new deadline of 2 June 2026 before later reversing course and appointing it. This reversal underscored the complexity of establishing a scheme that differs substantially from those being implemented elsewhere in the UK.
How will glass be handled differently from other materials?
Glass will follow a distinct implementation pathway compared to plastic and metal containers under Wales' scheme. Gruffydd confirmed that
the scheme will include plastic (PET), metal and glass drinks containers from day one, but in line with the Deposit Scheme for Drinks Containers (Wales) Regulations 2026, a four-year transition period will apply to glass drinks containers, during which glass drinks containers will be exempt from labelling requirements and carry a zero pence deposit.
This transition arrangement means that although glass containers will be accepted into the system from October 2027, they will not carry a monetary deposit during the initial phase. According to Senedd Research, the glass transition period runs from 1 October 2027 to 30 September 2031, at which point a full deposit and refund system for glass is expected to commence. The regulations were laid in February 2026 and approved in March 2026, establishing the scheme's framework and implementation structure.
What concerns has the drinks industry raised?
The inclusion of glass has generated substantial opposition from beverages manufacturers and retailers, who have warned of increased costs and reduced product availability. The Welsh government's decision to incorporate glass from the outset creates what industry representatives describe as considerable operational complexity compared to schemes in other parts of the UK.
Addressing these concerns, Gruffydd indicated that the government would focus on
working on exclusions for smaller producers and flexibilities around smaller retailers as well. The minister also emphasised that the scheme would
tackle litter while supporting the collection of high-quality recycled materialsand would
help provide a pathway towards the roll-out of reuseable drinks containersin Wales.
Andy Bagnall, director general of the British Soft Drinks Association, welcomed the appointment of Exchange for Change as
a crucial milestone in delivering a successful DRS by October 2027. However, he cautioned that preparations were
already well advanced for launching the DRS in October 2027 for England, Scotland and Northern Ireland, and stressed that
delivering the scheme in Wales within such a short timeframe means there can be no further delays. Bagnall also urged ministers to
be realistic about what's possiblebefore the launch, given the additional operational demands created by glass inclusion.
What has Exchange for Change said about its appointment?
Exchange for Change characterised its selection as an
important milestonethat would facilitate delivery of an
effective and efficient scheme. The company described the DRS as a
transformational opportunity to change how we manage waste in the UKand expressed its intention to
work closely with the Welsh government to take the scheme forward.
What happens next?
The scheme is targeting its October 2027 launch, with detailed operational arrangements still requiring completion. The four-year glass transition period is scheduled to conclude in October 2031, when a full deposit and refund system for glass containers is anticipated to take effect. Between now and launch, Exchange for Change and the Welsh government must finalise infrastructure deployment, establish reverse vending machine locations, and implement systems to manage the distinct treatment of glass during its transition phase.
Key Facts:
- Wales is the only UK nation including glass in its deposit return scheme, alongside plastic and metal containers
- Exchange for Change will operate the scheme from October 2027, following months of negotiations over glass inclusion
- Glass containers will carry zero pence deposit during a four-year transition period ending 30 September 2031
- The Welsh government and operator disagreed initially on the number of reverse vending machines needed at launch, with officials expecting 3,500 and the operator proposing 100
- The drinks industry has warned of increased costs and operational complexity, though the government plans exclusions for smaller producers and flexibilities for smaller retailers
