Circular Economy or Circular Confusion? The Deposit Return Scheme Debacle
As the Deposit Return Scheme (DRS) faces yet another twist in its tumultuous journey, the promise of a seamless transition to a circular economy hangs in the balance. Is this cornerstone environmental initiative turning into a symbol of confusion rather than progress?
In early August 2024, environmental media outlets reported that the Deposit Return Scheme (DRS) element of England’s broader circular economy strategy would be implemented sooner than expected. This news originated from a parliamentary question posed by Liberal Democrat Deputy Leader Daisy Cooper to Mary Creagh, Minister with Responsibility for Circular Economy. Cooper inquired whether the Secretary of State for Environment, Food and Rural Affairs (Defra) planned to introduce a Deposit Return Scheme for drinks containers before October 2027. Creagh responded affirmatively, stating “Yes,” and then emphasised the government’s commitment to creating a roadmap for a zero-waste economy.
The DRS proposals for England have been buffeted by the winds of political change since their official announcement in January 2023. Initially, the scheme was expected to include glass. Later, glass was excluded, creating complications for Scotland’s planned DRS rollout, which intended to include glass bottles. Confidence in Scotland’s DRS waned as the initiative’s ambition diminished and timescales extended. Eventually, Circularity Scotland, the appointed administrator, entered administration before collapsing with £86 million in debt. The high-profile failure of Scotland’s DRS was largely due to the lack of clarity regarding the scope and implementation timeline of the scheme in neighbouring England.
Such initiatives are best launched in a coordinated manner. Disparities in scope and timelines between schemes in neighbouring nations lead to confusion and can exacerbate the problem they aim to solve: the littering of public spaces. The DRS launch in England was initially set for October 2025 (following earlier suggestions of 2023 and 2024). In April 2024, Defra officially delayed the launch to October 2027. This date then became the benchmark for all four UK nations – England, Scotland, Wales, and Northern Ireland – to achieve maximum alignment across the schemes and simplify them for consumers and businesses across the UK. The four nations agreed to a revised implementation timeline to launch a UK-wide DRS in October 2027. Contrary to the Scottish Government’s instinct, this will not include glass collection.
Given this four nation agreement, Creagh’s suggestion that the DRS rollout was to be brought forward came as a surprise to many. Then, three weeks later, on August 19th, the suggestion of a fast-tracked implementation was reversed by Defra, with the commitment restated for the October 2027 date.
Such flip-flopping and wrangling reduces confidence in environmental initiatives. This diminished confidence leads to half-hearted delivery and mediocre participation as enthusiasm wanes. The government’s reputation suffers in the public eye, even among environmental enthusiasts, and trust between national delivery bodies erodes. Furthermore, since the Deposit Return Scheme is hailed as a flagship package in the move towards a circular economy, the arguments and delays risk damaging the very notion of this transition. If the term ‘circular economy’ becomes irredeemably tethered to half-baked plans and botched rollouts, it will quickly become a tarnished concept, seen as a byword for convoluted policy, unseemly disagreements, and unnecessary cost and complexity.
One of the key principles of a circular economy is the pivotal importance of appropriate design. The Deposit Return Scheme across the UK would benefit from better initial design before rushing into production. We can only hope that the four nations now work together collaboratively and in partnership to deliver a solution that genuinely meets its environmental objective and moves the UK towards a circular economy.