Deposit Return Scheme

The UK Deposit Return Scheme (DRS) will launch in October 2027 across England, Scotland and Northern Ireland, introducing a 20p refundable deposit on PET plastic, steel and aluminium drinks containers sized between 150ml to 3L.

Managed by the UK DMO, the scheme aims to boost recycling rates to 90% and reduce litter by incentivizing consumers to return bottles to retailers.

Key Details of the UK DRS

Launch Date: October 2027

Deposit Value: A flat 20p (£0.20) per contianer

Included Materials: PET (polyethylene terephthlate) plastic, steel and aluminium beverage containers.

Size Range: 150ml to 3L

Return Method: Empty containers can be returned to designated retail collection points or reverse vending machines.

Aim: increase recycling, reduce littering and promote a circular economy.

Containers with a lid made from other materials are still included.

The deposit will not apply to containers if they are:

not single use
made from high density polyethylene (HDPE) - (e.g. the material used to make milk bottles etc)
containers used for liquid medicine (e.g Calpol, cough syrup) or flavour enhancers or sweeteners to add to drinks (such as syrups or hot sauce) [1].

Wales inclusion: The Welsh government plans to include glass in their scheme, potentially differing from the rest of the UK.

Supplier Responsibilities

Everyone in the drinks supply chain must charge the deposit to their buyers when they sell filled drinks containers included in the scheme. This includes drink producers, importers, wholesalers and retailers.

Businesses must only supply filled drinks containers that have been placed on the market by a registered scheme producer and carry the scheme labelling.

The deposit does not need to be charged when supplying unfilled containers [1].

Producer Responsibilities

Under the scheme you have producer responsibilities if you [1]:

are a manufacturer of in-scope drinks (typically the brand owner)
import drinks to the UK
fill and seal drink containers to order, for example a hospitality venue supplying crowlers

Producers who are based in the Republic of Ireland and supply drinks to the Northern Ireland market should register with the scheme as a producer and meet the relevant responsibilities.

From 1 October 2027, producers must:

be registered with the deposit management organisation – the producer fee will be based on the number of containers placed on the market
apply the deposit to all containers included in the scheme
pay the deposits collected to the deposit management organisation when containers are sold to the next business in the supply chain
comply with scheme labelling requirements
report the number of drinks placed on the market

Retailer Responsibilities

All retailers selling drinks included in the scheme must [1]:

pay the deposit to producers or wholesalers when purchasing the drinks
charge the deposit to consumers at the point of sale

Return Points

Supermarkets, grocery stores, convenience stores and newsagents that sell drinks in the scheme must host a return point for drinks containers, unless they qualify for an exemption. The return point can be manual or automated using a reverse vending machine [1].

These retailers must also:

register with the deposit management organisation
pay the deposit back to consumers at the point of return (via voucher, card or cash)
store returned containers for collection
display information so customers know how the scheme works

Exemptions from Hosting a return point

Retailers in urban areas are exempt from hosting a return point if they have a retail space of less than 100m². They can still apply to be a voluntary return point. The deposit management organisation will provide guidance on exemptions and how to apply [1].

Other types of organisations that sell drinks can apply to host a voluntary return point. Examples include:

hospitality venues
food-to-go stores
schools, gyms, sports or community centres
mobile caterers
businesses with vending machines

If you are not automatically exempt you can apply for an exemption if either:

your business is close to another return point
it is not possible (or easy) to host a return point due to the location, layout, size, design or construction of the premises

To apply for one of these exemptions you will need to provide evidence to the deposit management organisation. They will provide guidance on the criteria and how to apply.

The UK Deposit Managment Organisation Ltd (UK DMO)

The UK DMO is Exchange for Change, the not-for-profit, industry led organisation who are responsible for delivering the DRS across England, Scotland and Northern Ireland [2]. It is a business-led body designed to oversee the scheme's infrastructure and management and will launch in October 2027 (although it was established on Februaury 26, 2025).

It is governed by a board representing drinks producers and retailers.

The Key Announcements in the Final UK Government Response

Published by Defra on 20 January 2023.

Containers in scope from 50ml to 3 litres (the 'All-in' approach) across England, Wales and Northern Ireland
Container types in England and Northern Ireland to include PET bottles, steel and aluminium cans.
In Wales the same types as England and Northern Ireland, but to also include glass bottles.
A collection target of 90% is to be set in the regulation for delivery within 3 years of the operation of the scheme (and a minimum of 85%).
Deposit levels to be set by a Deposit Management Organisation or DMO (yet to be appointed) which will also manage funds from a combination of revenue from the material it collects and sells to reprocessors, producer registration fees and unredeemed deposits.
Retailers selling 'in scope' containers will be obliged to host a return point, with exemption applications to the DMO.
Local Authorities will be able to take part in the DRS by separating out containers and redeeming the deposit on them.

First Stage Consultation Response

The first stage consultation responses were published in July 2019[3] and the next steps were set out in August 2019 [4] to:

Seek primary powers to implement deposit return schemes in the Environment Bill
Hold a second consultation in 2020 on the regulatory framework for introducing a DRS through secondary legislation
Following the second consultation, introduce a DRS from 2023

The Second Stage Consultation Approach

The second stage consultation opened in March 2021 and closed on 4 June 2021, having been delayed as a result of the COVID-19 pandemic[5].

In Scotland a DRS scheme was approved by the Scottish Parliament on the 13th May 2020 for implementation in March 2022[6]. However, it was then announced on the 7th June 2023 that this was to be delayed to align with the scheme of the rest of the UK[7].

This consultation ran in parallel with the Extended Producer Responsibility and Consistency in Recycling Collections in England [8] consultations.