The Scottish First Minister, Humza Yousaf, has announced a delay to the start of the Deposit Return Scheme (DRS) in Scotland. The Deposit Return Scheme will now commence on the 1st March 2024.

In his speech to the Scottish Parliament on the 18th April 2023, Humza Yousaf said he remained committed to the DRS scheme as a way to increase recycling, reduce litter and achieve net zero ambitions.

He pointed to uncertainty around the exclusion of the scheme in the UK Government’s Internal Market Act which could limit the Scottish Government’s power in resources and waste, the devolved matter in which DRS sits.

Measures will be put in place to simplify and de-risk the scheme and to provide support for small businesses and hospitality.

The First Minister said further details on this package of measures aimed to assist the commencement of the Scottish DRS Scheme will be provided in the coming weeks.

There are a few useful links that can help you understand the reason for this change, as well as help you understand the Scottish Deposit Return Scheme itself:

- Zerowaste Scotland: Deposit Return Scheme

- The First Minister's statement release on the Scottish Government website

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View our previous article on 'Coffey looks to uncork Scottish DRS plans' [31/05/23]
View our previous article on 'Scottish DRS Concerns' [10/01/23]

The UK government is waiting for the new Scottish First Minister, Humza Yousaf, to decide if he wants to continue with the deposit return scheme (DRS) as it stands, according to Environment Secretary Thérèse Coffey.

During a meeting before the Environment Food and Rural Affairs (EFRA) Committee on 28 March, Coffey explained that while Westminster is considering Scotland's request to exempt the DRS from the Internal Markets Act, there is a "balance to be had".

"The Scottish government has a different policy and I wait to see if the new first minister wishes to continue with the same policy and proposal of that scheme in Scotland. I am pleased that England and Northern Ireland are moving in-step, with Wales as well who want to do extra with glass," Coffey said.

The Scottish DRS is set to launch from August 2023, but Yousaf has previously stated that he plans to exempt smaller retailers. If the UK government denies Scotland's request for an exemption, the DRS rules would only apply to drinks bottled in Scotland, putting Scottish producers at a disadvantage.

Coffey reiterated her support for a UK-wide DRS scheme: "I think there is still an opportunity for a UK-wide scheme...consumers would like a UK-wide scheme and that is still open to the Scottish government if they wish to join that."

However, Coffey acknowledged the cost concerns raised over the DRS in Scotland: "I am conscious of the cost concerns people have raised on the cost and supply of goods in Scotland."

The Scottish government has submitted an application to exempt the DRS from the Internal Markets Act, but Coffey believes there is still an opportunity for a UK-wide scheme.

"I think there is still an opportunity for a UK-wide scheme. We are going through the request made, but there is a balance here in understanding from the new first minister whether or not this is a policy they want to do and whether they want to continue with that request for an exemption from the Internal Markets Act," she said.

Yousaf had hinted at a delay to the DRS in the run-up to his appointment, saying that he would exempt small retailers in the first year of the scheme.

Circular economy minister Lorna Slater, however, said this week that the Scottish DRS has "inspired campaigns around Europe". The Scottish government has also noted that the DRS logistics partner, Biffa, plans to invest £80m in facilities to count, sort and process DRS material.

Yousaf also met with the Scottish Green co-leaders this week, who are strong supporters of the DRS.

View our previous article on Scottish DRS Concerns [10/01/23]

Overview

The Scottish Deposit Return Scheme (DRS) will affect all drinks producers AND importers, regardless of size, that markets or offers drinks for sale in Scotland. Any producer and/or importer will need to register either directly with the Scottish Environment Protection Agency (SEPA) or via Circularity Scotland, the Scheme Administrator (SA). If they do not, they will be prohibited to sell any drinks products in the whole of Scotland.

Producers have until Tuesday 28^th February 2023 to register.

The scheme will see a 20p deposit placed on all single-use drinks containers made of PET plastic, steel, aluminium, and glass – HDPE plastic is NOT included. All container materials have the same deposit amount and only applies to containers sized between 50ml and 3 litres. Drinks containers that meet these criteria are referred to as ‘scheme articles’.

You are considered a drinks producer if:

• You are a brand owner of a scheme article that is branded in the UK;
• You import scheme articles that are branded by a brand owner outside the UK;
• You fill and seal scheme articles with a drink at the point of sale to a consumer.

The consumer will be able to get the 20p back once the empty container has been returned.

Some retailers will operate returns over the counter, whereas some larger retailers will operate the use of Reverse Vending Machines (RVMs). All retailers who sell drinks are required, under DRS, to operate some form of return point for consumers. There are some exemptions to operating a return point. All exemptions must be applied for via Zero Waste Scotland.

The Scottish DRS will go live for consumers on Wednesday 16^th August 2023.

Beverage Test

Use the ‘Beverage Test’ to see if your products meet the criteria:

• Must be a drinkable liquid;
• Are taken to increase bodily liquid levels;
• Are taken to relinquish thirst;
• Are consumed to fortify.

Registration Fee

The registration for both SEPA and Circularity Scotland is £365 per year. If the producer has a taxable turnover of £85,000 or less in the previous financial year, then no registration fee will apply.

You do not need to register with both organisations. If you register with Circularity Scotland, they will register you with SEPA and will undertake the reporting duties on your behalf. If you register with SEPA, you will have to fulfil take-back and reporting duties yourself.

Read our previous update about Scottish DRS here.

Zero Waste Scotland (ZWS) has urged councils not to stop glass collections ahead of the rollout of the deposit return scheme (DRS), amid concerns the system will hit kerbside collections.

Falkirk became the first council last year to stop glass collections as a direct result of the DRS, with several other local authorities now reviewing their service.

The scheme will see a 20p deposit placed on all single-use drinks containers made of PET plastic, steel, aluminium, and glass. The consumer will get this back once the empty container has been returned.

Adrian Bond, recycling manager at ZWS, said: “For the majority of councils, the projected savings from the reduction in residual waste were greater than the loss of income from recyclate.”

“Our recommendation is not to make service changes in advance of the launch. ZWS is working through various glass collection options and will be making recommendations on the most efficient models.”

Deadline

The call comes as the Scottish government has scaled back large parts of the system to enable it to hit the August 2023 deadline.

Lorna Slater, the circular economy minister, made a string of changes after a government report came to light which showed the legislation would have to be altered in order for the deadline to be hit.

The first measure is to reduce producer fees and payments producers are required to make on day one.

Circularity Scotland has also reviewed the timing of cashflows from producers to the scheme administrator for deposits and the producer fee.

The changes mean producer fees will be 8%, 30% and 40% lower for glass, PET plastic and metal containers respectively.

View our previous articles on the 2022 DRS Response [11/10/22]