UK Deposit Return Scheme (DRS)
The Deposit Return Scheme launches on 1 October 2027 across the UK. A deposit — expected to be around 20p — on drinks containers, refunded when consumers return empties. Here is everything your business needs to know to prepare.
What is the Deposit Return Scheme?
The Deposit Return Scheme (DRS) is a UK government initiative designed to boost recycling rates for drinks containers and reduce litter. Under the scheme, consumers pay a small deposit — expected to be around 20p — on top of the price of a drink sold in an in-scope container.
When the consumer returns the empty container to a designated collection point — such as a reverse vending machine at a supermarket or a manual return point at a smaller shop — they receive their deposit back in full.
The scheme is modelled on successful deposit return systems already operating in countries like Germany, Norway, and the Netherlands, where return rates exceed 90%. The UK scheme is expected to capture billions of containers that currently end up in landfill, incineration, or as litter.
Producers of drinks in in-scope containers fund the scheme through fees paid to the Deposit Management Organisation (DMO), the body responsible for running the DRS across the UK.
Expected Deposit
Launch Date
All Four Nations
Target Return Rate
How the Deposit Return Scheme Will Work
The DRS follows a simple circular model — from purchase to return to recycling. Here is how it works for consumers and businesses.
Buy a Drink
Consumer purchases a drink in an in-scope container. The deposit is added to the shelf price and shown on the receipt.
Return the Container
Consumer takes the empty container to a collection point — a reverse vending machine (RVM) or a manual return point at a participating retailer.
Get the Deposit Back
The consumer receives their deposit back — via cash, card refund, voucher, or digital payment, depending on the return point.
Collect and Sort
Returned containers are collected from return points, sorted by material type (plastic, aluminium, steel), and sent for recycling.
Producers Fund It
Drinks producers and importers pay fees to the Deposit Management Organisation (DMO) to fund the scheme infrastructure and operations.
Which Containers Are Included?
The DRS covers drinks containers between 150ml and 3 litres. Not all materials are included. Here is what is in scope and what is not.
PET Plastic Bottles
Single-use PET plastic drinks bottles from 150ml to 3 litres. Covers water, soft drinks, juice, and most other beverages sold in plastic bottles.
Aluminium & Steel Cans
All single-use aluminium and steel drinks cans from 150ml to 3 litres. Covers soft drinks, beer, cider, energy drinks, and other canned beverages.
Glass Bottles
Glass is not included in the DRS for England, Scotland, or Northern Ireland. Wales plans to include glass but initially without a deposit attached. Glass remains covered by packaging EPR obligations.
Cartons & Tetra Pak
Fibre-based composite containers such as Tetra Pak cartons are not included in the DRS. These remain covered under the separate packaging EPR scheme.
Pouches & Sachets
Flexible packaging such as drinks pouches (e.g. Capri-Sun style) and sachets are excluded from the DRS. These are covered under packaging EPR obligations instead.
Milk & HDPE Containers
HDPE containers (used for most conventional milk bottles) are excluded from the DRS. However, PET dairy drinks containers (such as flavoured milk or milkshakes in PET bottles, 150ml-3L) are in scope and carry a deposit like any other PET drinks container.
Who Needs to Register for the DRS?
The DRS affects a broad range of businesses across the drinks supply chain. If you produce, import, or sell drinks in in-scope containers, you will have obligations under the scheme.
Drinks Manufacturers
Any business that manufactures drinks and fills them into in-scope containers in the UK. Must register with the DMO, pay producer fees, and apply DRS labelling.
Drinks Importers
Any business that imports drinks in in-scope containers into the UK market. As the first UK entity in the supply chain, importers take on full producer obligations under DRS.
Retailers
Shops, supermarkets, and other retail outlets selling drinks in in-scope containers. Retailers above a certain size threshold will be required to host a return point for empty containers.
Hospitality Venues
Pubs, bars, restaurants, and cafes that sell drinks in in-scope containers. Must charge the deposit on applicable drinks and may need to provide or signpost to return facilities.
Online Drinks Sellers
E-commerce businesses selling drinks in in-scope containers. Must charge the deposit online and provide a way for consumers to return empty containers for a refund.
Vending Machine Operators
Operators of drinks vending machines dispensing in-scope containers. Must charge the deposit and may need to co-locate a return facility or direct consumers to the nearest return point.
Producer Obligations Under the DRS
If you manufacture or import drinks in in-scope containers, you are classed as a producer under the DRS. Producers bear the primary financial and administrative obligations of the scheme. Here is what you will need to do.
Register with the DMO
Register your business with the Deposit Management Organisation before the scheme launches. Registration is expected to open in Q2 2027.
Pay Producer Fees
Pay ongoing fees to the DMO that fund the scheme infrastructure — collection points, reverse vending machines, logistics, and administration.
Label Containers with DRS Markings
Apply DRS-specific labels and markings to all in-scope containers. This will include a unique barcode and a DRS logo so return points can identify eligible containers.
Include Deposit in Pricing
Adjust your pricing to include the deposit on top of the product price. The deposit must be clearly shown on invoices and at point of sale.
Report Volumes Placed on Market
Report the number and type of in-scope containers you place on the UK market on a quarterly basis. This data is used to calculate your producer fees and track scheme performance.
Retailer Obligations Under the DRS
Retailers play a critical role in the DRS as the main interface between consumers and the return system. Whether you run a supermarket, a convenience store, or a hospitality venue, here is what will be expected of you.
Offer a Return Point
Retailers above a certain floor space threshold will be required to host a return point — either a reverse vending machine or a manual over-the-counter return facility.
Accept Returned Containers
Accept all in-scope containers returned by consumers, regardless of where the container was originally purchased. Retailers cannot refuse valid DRS containers.
Refund Deposits
Refund the deposit to consumers when they return an eligible container. The refund method may vary — cash, card, voucher, or digital payment.
Store Returned Containers
Provide adequate storage for returned containers until they are collected by the DMO's logistics network. This may require dedicating back-of-house space.
Display DRS Information
Display clear signage informing consumers about the DRS — including the deposit amount, which containers are eligible, and where to return them.
Key Dates for the DRS
The countdown to the UK Deposit Return Scheme has begun. Here are the critical dates every affected business should have in their diary.
DMO Established & Preparations Begin
The Deposit Management Organisation is established and begins building the scheme infrastructure — contracts with reverse vending machine suppliers, logistics networks, and IT systems.
Producer Registration Opens
The DMO opens registration for drinks producers and importers. Businesses must register their products, container types, and projected volumes before the scheme goes live.
DRS Launches Across the UK
The Deposit Return Scheme goes live across the UK. England, Scotland, and Northern Ireland launch under Exchange for Change. Wales aims to launch its separate scheme on the same date. From this date, the deposit applies to all in-scope containers and consumers can begin returning empties for refunds.
Quarterly Reporting Begins
Producers submit quarterly reports to the DMO on the number and type of in-scope containers placed on the market. Data is used to calculate fees and track scheme performance against recycling targets.
DRS Across the United Kingdom
England, Scotland, and Northern Ireland will launch the DRS together on 1 October 2027 under Exchange for Change. Wales withdrew from the joint process in November 2024 and is developing its own separate DRS — also targeting October 2027 — which will include glass.
England
England will launch the DRS on 1 October 2027 covering PET bottles and aluminium/steel cans. Glass is not included in the English DRS.
Scotland
Scotland originally planned its own DRS with a 16 August 2023 launch, but after Circularity Scotland (the original administrator) went into administration in June 2023, the scheme was restructured and aligned with the UK-wide October 2027 launch under Exchange for Change. Glass is not included in the Scottish DRS. The scheme covers PET plastic, aluminium, and steel cans only.
Wales
Wales withdrew from the joint UK-wide DRS process in November 2024 and is developing its own separate scheme, also targeting an October 2027 launch. Wales plans to include glass in its DRS, but initially with a zero-pence deposit on glass containers until October 2031.
Northern Ireland
Northern Ireland will join the UK-wide DRS. Cross-border considerations with the Republic of Ireland (which operates its own DRS) are being addressed to ensure containers can be returned in both jurisdictions where possible.
Glass is not included in most nations
Glass is not included in the DRS for England, Scotland, or Northern Ireland. Only Wales plans to include glass, but initially without a deposit. The core DRS materials across all nations are PET plastic bottles, aluminium cans, and steel cans. Glass containers remain covered by separate packaging EPR obligations.
How the DRS Will Affect Your Business
Beyond registration and compliance, the DRS will have real operational and financial impacts. Here are the key areas your business should start planning for now.
Pricing Changes
The deposit (expected to be around 20p) must be added to your shelf prices and shown separately on invoices. You will need to update EPoS systems, price labels, online listings, and accounting procedures to handle deposit-in and deposit-out transactions.
Labelling Redesign
In-scope containers will need DRS-specific labelling — a unique barcode and the DRS logo. Producers should factor in lead times for label redesign, printing, and stock transitions to ensure compliance by launch day.
Storage Space
Retailers hosting return points will need space for reverse vending machines and/or storage of returned containers. Plan your back-of-house layout now to accommodate the additional space requirements.
Cash Flow Impact
Retailers will collect deposits at point of sale and refund them on return. The timing gap between collecting and refunding deposits, plus the DMO reimbursement cycle, will affect cash flow and working capital.
IT System Updates
EPoS, accounting, and inventory systems will need updating to track deposit amounts separately from product prices. Producers will also need systems to generate quarterly volume reports for the DMO.
Staff Training
Frontline staff will need training on how the DRS works, how to handle manual returns, how to operate reverse vending machines, and how to answer customer questions about the scheme.
Frequently Asked Questions
Everything businesses need to know about the UK Deposit Return Scheme — from deposit amounts to registration requirements.
What is the Deposit Return Scheme (DRS)?
The Deposit Return Scheme is a UK-wide initiative that adds a small refundable deposit (expected to be around 20p) to the price of drinks sold in single-use containers. When the consumer returns the empty container to a designated collection point, they receive the deposit back. The scheme aims to dramatically increase recycling rates for drinks containers and reduce litter across the UK.
When does the UK Deposit Return Scheme launch?
The DRS is scheduled to launch on 1 October 2027. England, Scotland, and Northern Ireland will launch together under a single scheme administered by Exchange for Change as the Deposit Management Organisation. Wales withdrew from the joint UK-wide process in November 2024 and is developing its own separate DRS — also aiming for an October 2027 launch — which will include glass (initially with a zero-pence deposit until October 2031). Scotland originally planned a separate scheme launching 16 August 2023, but after Circularity Scotland (the original administrator) went into administration in June 2023, the scheme was restructured and aligned with the October 2027 date.
How much is the deposit on drinks containers?
The deposit is expected to be around 20p per container, though the final amount has not yet been officially confirmed. This will apply to all in-scope drinks containers between 150ml and 3 litres in volume, made from PET plastic, aluminium, or steel. Glass is not included in the DRS for England, Scotland, or Northern Ireland. Wales plans to include glass but initially without a deposit. The deposit is added to the shelf price and refunded in full when the empty container is returned.
Which containers are included in the DRS?
The scheme covers PET plastic bottles, aluminium cans, and steel cans between 150ml and 3 litres. Glass is not included in the DRS for England, Scotland, or Northern Ireland. Wales plans to include glass but initially without a deposit. Cartons, Tetra Pak, pouches, and HDPE containers are not included. Since most milk bottles are HDPE, they are effectively excluded — but PET dairy drinks containers (such as flavoured milk or milkshakes in PET bottles, 150ml-3L) are in scope.
How will the DRS affect small businesses?
Small businesses that sell drinks will need to display DRS information and may need to accept returned containers depending on their floor space and the final regulations. Producers and importers of all sizes who place drinks in in-scope containers on the UK market will need to register with the Deposit Management Organisation (DMO), pay producer fees, and label their containers with DRS-specific markings. The exact thresholds for retailer return obligations are still being finalised.
Will pubs, bars, and restaurants need to participate in the DRS?
Hospitality venues that sell drinks in in-scope containers (e.g. canned or bottled drinks) will be affected. They will likely need to charge the deposit on applicable drinks and may need to accept returned containers or direct customers to nearby return points. Drinks served from draught or in reusable glassware are not affected by the DRS.
Does the DRS apply to online drinks sellers?
Yes. If you sell drinks in in-scope containers online, you will be required to charge the deposit on each applicable container. Online sellers will also need to provide a mechanism for consumers to return empty containers, though the exact requirements for distance sellers are still being developed by DEFRA and the DMO.
Is Scotland running a separate Deposit Return Scheme?
No, not any more. Scotland originally planned to launch its own DRS on 16 August 2023, but after Circularity Scotland (the original scheme administrator) went into administration in June 2023, the scheme was fundamentally restructured. Scotland has since aligned with the joint scheme and will launch on 1 October 2027 under Exchange for Change alongside England and Northern Ireland. The core materials in scope — PET plastic, aluminium, and steel — are consistent across these three nations. Wales is running a separate DRS (also targeting October 2027) that will additionally include glass, though initially with a zero-pence deposit until October 2031.
How is the DRS different from packaging EPR?
The DRS and packaging EPR are separate but complementary schemes. Packaging EPR (Extended Producer Responsibility) covers all types of packaging and requires obligated producers to report packaging data and pay disposal fees to fund recycling. The DRS specifically targets drinks containers with a consumer-facing deposit-refund mechanism. Drinks containers covered by the DRS may be exempt from certain EPR fees to avoid double-charging, but producers will still need to comply with both schemes where applicable.
Where will I be able to return containers?
Return points will include reverse vending machines (RVMs) installed at supermarkets and larger retailers, as well as manual return points at smaller shops. The exact network of return points will be managed by the Deposit Management Organisation (DMO), which will ensure adequate coverage across the UK. Retailers above a certain floor space threshold will be required to host a return point.
Prepare Your Business for DRS
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