Further delays for Scotland's Deposit and Return Scheme

The Deposit and Return Scheme for Scotland Regulations SSI 2020/154 have been amended and the implementation date for the scheme delayed again.

The Regulations make provision for the operation of a deposit and return scheme (DRS) for drinks that are intended to be sold to consumers in Scotland and are contained in single-use packaging made from polyethelene terephthalate plastic, glass, aluminium and steel, and the packaging for those articles. Originally the scheme was set to be implemented on 1 July 2022, however an independent review involving industry found that this date would be undeliverable, and consequently the implementation of the scheme was moved to 16 August 2023.

This date has now been pushed back to 1 March 2024 following an internal review and independent Gateway review of the readiness of the DRS in 2023 which found many businesses would not be ready to implement the scheme by 16 August 2023.

The Scottish government claim the delay is a consequence of the UK government's refusal to agree to a full exclusion from the Internal Market Act to enable Scotland's DRS to be implemented as intended. A number of conditions have been imposed by the UK government on Scotland's planned DRS, inlcuding removing obligations relating to glass and ensuring any Scottish DRS aligns with other schemes across the other UK nations. However currently no other country in the UK has any regulations in place for their own DRS.

The Deposit and Return Scheme for Scotland Amendment Regulations SSI 2023/201 are amending the main DRS Regulations to change the implementation date and also simplify the scope of the DRS. Other amendments include:

• revising takeback obligations in relation to online takeback to reduce the burden on the retail sector. These changes will require:
  • only the largest grocery retailers to provide a takeback service, and
  • those retailers to provide that service only to customers who have a disability or are aged 66 years and over;
• excluding low volume drink products from being obligated where fewer than 5,000 units are marketed, offered for sale or sold by a producer to consumers in Scotland per year. This seeks to remove the disproportionate burden of the DRS on producers of such low volume products;
• amending minimum volumes of scheme articles from 50ml to 100ml, and in doing so exclude drinks containers under 100ml from the definition of a scheme article;
• making exemptions for retailers from acting as a point of return where 90% or more of scheme articles are sold for consumption on the premises of sale. Hospitality retailers where scheme articles sold were exclusively for consumption on the premises were already exempt from acting as a return point;
• providing return point operators the right to refuse packaging in specific circumstances, where they do not permit such scheme articles of a certain material type to be brought into, or held on, the premises for reasons of compliance with any food safety, health and safety obligations;
• placing a new duty on hospitality retailers to retain scheme packaging for collection by, or on behalf of, a producer or scheme administrator;
• making a technical amendment to the definition of 'placed on the market'.

Despite the delay of the scheme to 16 August 2023 the conflict of position between the Scottish government and the UK government on the implementation of the scheme has not yet been resolved. Consequently members of the Scottish government have claimed the reality is the scheme may not go live until October 2025 at the earliest.

Circular Economy Minister Lorna Slater stated in Parliament: "It is now clear that we have been left with no other option than to delay the launch of Scotland’s DRS, until October 2025 at the earliest based on the UK Government’s current stated aspirations."

"I remain committed to interoperable DRS schemes across the UK provided that we can work in a spirit of collaboration not imposition. I wrote again last night to the UK Government, to urge ministers to reset a climate of trust and good faith to galvanise and retain the knowledge that has been built in Circularity Scotland and DRS partners in Scotland."

Update

The Scottish Government have published the Draft Deposit and Return Scheme for Scotland (Miscellaneous Amendment) Regulations 2023.

They propose setting 1 October 2025 as the implementation date for Scotland's DRS, extending it from 1 March 2024 deadline. Businesses stated that they couldn't prepare for the March 2024 date due to uncertainty over changes in light of the UK Governments decision. There was support for a delayed implementation date for DRS to 1 October 2025, which would coincide with the UK Government's plans for DRS across other parts of the UK.

For more information, see the:

• Deposit and Return Scheme for Scotland Regulations SSI 2020/154;
• Deposit and Return Scheme for Scotland Amendment Regulations SSI 2023/201;
• Draft Deposit and Return Scheme for Scotland (Miscellaneous Amendment) Regulations 2023.