Child Rights and Wellbeing Impact Assessment (CRWIA) for the Deposit and Return Scheme for Scotland (Amendment) Regulations 2026

Child Rights and Wellbeing Impact Assessment

1. Brief Summary

Type of proposal

• Scottish Statutory Instrument

The Deposit and Return Scheme for Scotland (Amendment) Regulations 2026

The Scottish Government is committed to creating a more circular economy where products and materials are kept in use for as long as possible – maximising resources to benefit the economy and the environment. Material consumption and waste are primary drivers of nearly every environmental problem Scotland currently faces, from water scarcity to habitat and species loss.

As part of plans to create a more circular economy, the Scottish Government intends to introduce a Deposit Return Scheme (DRS) for single-use drinks containers made of polyethylene terephthalate (PET), steel, and aluminium cans from 1 October 2027. The DRS is run by a private, not-for-profit organisation, Exchange for Change, who are responsible delivering the scheme on behalf of industry.

The DRS is intended to reduce littering, increase the recycling rate of drinks containers made of plastic and aluminium or steel and improve the quality of material collected for recycling. The Deposit Return Scheme for Scotland Amendment Regulations 2026 (the Regulations) will amend the existing Deposit and Return Scheme Scotland for Scotland Regulations 2020^[1] (and, along with the Deposit and Return Scheme for Scotland (Designation of Scheme Administrator) Order 2025,^[2] will establish a DRS in Scotland and help to support these changes.

What the regulations do:

This instrument makes minor operational amendments in relation to DRS, and corrects drafting oversights in the Deposit and Return Scheme for Scotland Amendment Regulations 2025. The Regulations make the following amendments for organisations involved in the operation of DRS:

• Bring forward the date at which the Scottish Environment Protection Agency (SEPA) can enforce obligations of the scheme administrator, (Exchange for Change) to the date after regulations come into force and allow SEPA to recover its costs, enabling it to fulfil its regulatory functions and support scheme implementation prior to launch on 1 October 2027.
• Remove the exemption relating to retailer obligations for export shops relating to the charging of deposits; and also removes the retailer return point exemption for export shops. This provides parity with other Scottish retailers.
• Change the obligations on hospitality retailers (i.e. cafes or bars) to provide hospitality businesses with greater flexibility in determining how deposits are applied and managed, responding directly to concerns raised by the sector regarding operational complexity and costs. Hospitality retailers will be required to apply deposits to drinks sold to consume on premises, but they can alternatively choose to operate a ‘closed loop’ system with no deposit charged to the consumer when drinks are sold exclusively to be consumed on premises. If operating a ‘closed loop’ system, the hospitality retailer can choose to retain empty drinks containers for collection by the scheme administrator, but will no longer be required to retain containers for collection. In these circumstances, if requested by the hospitality retailer, the scheme administrator must collect the DRS empty drinks containers. The amendments bring these obligations into alignment with schemes across the UK.

These changes impact upon businesses with obligations under DRS legislation and do not have an impact on children and young people.

Start date of proposal’s development: June 2026

Start date of CRWIA process: August 2026

2. With reference given to the requirements of the UNCRC (Incorporation) (Scotland) Act 2024, which aspects of the proposal are relevant to/impact upon children’s rights?

The Deposit Return Scheme for Scotland Amendment Regulations 2026 are not relevant to the requirements of the United Nations Convention on the Rights of the Child (UNCRC) as outlined in the UNCRC (Incorporation) (Scotland) Act 2024. The Regulations therefore are not intended to impact upon children’s rights. Impact assessments carried out in 2025 have considered the impact of wider DRS legislation on people with protected characteristics, including children.

A CWRIA was also undertaken in 2025 at the time that the Deposit and Return Scheme for Scotland Amendment Regulations 2025 were made. An operational DRS may contribute to indirect benefits such as cleaner environments and a reduction in litter that promote better health and safer play spaces by reducing litter in parks, beaches, and other public spaces. These indirect effects align with general principles of the UNCRC’s requirements and once implemented, will impact several key areas. The amendments made by the Deposit and Return Scheme for Scotland Amendment Regulations 2026 are limited in nature and have no significant impact on the operation of DRS as a whole.

Therefore, the impact of this instrument on the rights and wellbeing of children is considered as neutral.

3. Please provide a summary of the evidence gathered which will be used to inform your decision-making and the content of the proposal

Not applicable

4. Further to the evidence described at ‘3’ have you identified any 'gaps' in evidence which may prevent determination of impact? If yes, please provide an explanation of how they will be addressed

No gaps have been identified.

5. Analysis of Evidence

Not applicable.

6. What changes (if any) have been made to the proposal as a result of this assessment?

No changes have been made to the proposal.