Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted in Part
Uncertainties in deposit return scheme benefits and delayed Scottish launch raise value for money concerns.
Recommendation
The National Audit Office recommended that the Department considers piloting the scheme due to uncertainties around the scale of the benefits to ensure it is value for money. The impact assessment for the deposit return scheme showed that more than 90% of the benefits of the scheme are based on an estimate of the value to society of reducing litter, and this is inherently difficult to determine. The Department was planning to use Scotland’s deposit return scheme as an opportunity to learn lessons, but the launch of this has now been delayed until at least October 2025, which is when the Department plans to launch its scheme.30
Government Response Summary
The government agrees with the need to learn lessons but addresses the committee's point by detailing extensive learning from international deposit return schemes, without committing to piloting the UK scheme itself, promising an update in Summer 2024.
Government Response
Accepted in Part
HM Government
Accepted in Part
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2024 3.2 The department has worked closely with other international schemes to learn lessons to support the design and roll-out of the deposit return scheme (DRS) in England, Wales and Northern Ireland. This includes learning lessons from the proposed DRS in Scotland, the forthcoming scheme in the Republic of Ireland, as well as established schemes in Sweden, Germany, Latvia, and others from across the world. 3.3 As part of gathering information, the department recently carried out visits to Sweden, Republic of Ireland and Slovakia to see their DRS in person and to meet with industry representatives, civil servants and scheme administrators to discuss the scheme set up. Information was also gathered from teach-ins with the German, Latvian, and ROI scheme administrators. And finally, the department carried out desk research on specific topics, reaching out to relevant international schemes, stakeholders and other organisations such as Reloop where further information is needed. 3.4 The department has particularly engaged with other comparable European schemes, many of which have similar key features to the UK’s scheme such as: • A collection target that covers a broad scope of packaging and container types. • A meaningful deposit value – usually a round figure that is high enough to incentivise consumers. • An easy-to-follow redemption system that is reliable, accessible, and fair to all in society. • A system where producers help to manage, finance, and invest in the system. 3.5 International schemes have informed policy making on the set up of the scheme administrator, provision of return points and scope of the regulations. 3.6 The department will write to the Committee in Summer 2024 following the publication of the joint policy statement on DRS and notification of the draft secondary legislation, which sets out final policy positions of the scheme. This will ensure the letter can include specific examples of lessons learnt from international schemes once the developing policy positions are confirmed and made public.