Source · Select Committees · Public Accounts Committee

Recommendation 16

16 Accepted

Department not piloting deposit return scheme despite limited applicability of international comparators.

Conclusion
We asked if the Department plans to conduct a pilot of the deposit return scheme. It does not plan to conduct a pilot due to the practical challenges of setting it up. The Department told us it believes it has sufficient information from small trials and looking at the experiences of other countries who have implemented similar schemes.31 It told us that there are around 50 established and operational deposit return schemes internationally, and a number that are in development.32 The Department plans to learn from each of the examples and apply this to development of its deposit return scheme.33 However, it accepts 26 GRWR0035; GRWR0020 27 C&AG’s Report, Figure 8 28 GRWR0041 29 C&AG’s Report, para 2.4 30 Q 32; C&AG’s Report para 21 31 Qq 32–33 32 Qq 33–34 33 Q 32 Government’s programme of waste reforms 13 the international comparators are not directly comparable to the UK, for example because some countries do not have an established and mature kerbside collection which recycles the same containers as its deposit return scheme.34 34 Q34 14 Government’s programme of waste reforms 2 Government’s wider work on resources and waste Waste prevention
Government Response Summary
The government agrees with the committee's observation and outlines extensive efforts already undertaken to learn from international DRS schemes, including visits and research, to inform its policy making. It commits to providing specific examples of lessons learned to the Committee by Summer 2024.
Government Response Accepted
HM Government Accepted
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.