The Deposit Return Scheme in the UK explained | Ecosurety
Deposit Return Schemes
Introduction
Deposit Return Scheme (DRS) systems make producers of single-use drinks packaging legally responsible for the collection and preparation for recycling of the containers they put on the market. Government have confirmed that DRS’ in England, Northern Ireland and Scotland will be fully implemented by 1 October 2027.
The legislation for the DRS in England and Northern Ireland was implemented in January 2025. In June 2025 the Scottish DRS legislation was amended to align with England and Northern Ireland, and they designated the UK Deposit Management Organisation (DMO) Exchange for Change to manage the scheme.
Although Wales opted out of the joint DRS process in 2024, in a statement released in July 2025, the Welsh government stated they will accelerate their DRS implementation timeline to align with the rest of the UK, and therefore plan to have a system in place by October 2027 too.
The government’s guidance on DRS can be found here. This article outlines the current information we have about the design of the scheme, and the associated responsibilities for drinks producers and return-point operators.
We updated the 'Scheme articles', 'Financial flows', 'Producer required actions', 'Labeling and barcodes', and the 'Retailer required actions' sections.
13 April 2026
We updated the 'Scheme articles' and 'Retailer required actions' sections.
24 February 2026
We added a new 'Labelling' section and details of the reverse vending machine requirements in the 'Retailer required actions' section.
9 February 2026
We updated the 'Introduction', 'Scheme management', 'Producer required actions', 'Low-volume sales exemption', 'Retailer required actions' sections.
11 July 2025
We updated the 'Introduction', 'Scheme articles' and 'Scheme management' sections following an update on the DRS in Wales.
12 May 2025
We updated the article now that the DMO has been appointed.
28 January 2025
We updated all sections of the article now that the regulations have come into force.
The Deposit Return Scheme in the UK explained
The Deposit Return Scheme (DRS) in England, Wales, Scotland and Northern Ireland will be implemented by 1 October 2027. Find out all the known details about how it will operate.
30 April 2026
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Scheme operation
Scheme articles
Consumers will pay a 20p deposit on every single-use drink container between 150ml and 3L that are made wholly or mainly of PET plastic, steel or aluminium (in England, Scotland and Northern Ireland). The same applies to Wales, with the inclusion of glass from 2030.
Consumers will be encouraged to return containers with any caps/lids, even if they are made of another material, but this will not be mandatory. In-scope containers do not include those used for liquid medicines, such as cough syrups, sweeteners or flavour enhancers such as syrups or condiments.
A material specification has been released by Exchange for Change. The document describes the requirements for drinks containers that can be returned under the DRS in England, Scotland and Northern Ireland. Detail is provided on minimum and maximum container dimensions, acceptable container shapes, material thickness and the mandatory barcode specifications.
Some drinks containers that do not meet the standard shape or size requirements may not be accepted by reverse vending machines (RVMs) and, if testing confirms this, would only be returnable manually by consumers.
The UK Government has confirmed that an exclusion under the UK Internal Market Act (UKIMA) has been granted for Wales, alongside the formal laying of the DRS for Drinks Containers (Wales) Regulations 2026. The exclusion from the UKIMA’s market access principles, announced on 12 February 2026, means that Wales can include glass containers in their scheme, whereas the rest of the UK will continue with DRS plans that cover only PET bottles and steel/aluminium cans.
However, the exclusion comes with several conditions intended to keep the UK’s DRS' aligned and to give industry more time to prepare.
These include commitments to:
Launch the Welsh DRS for PET plastic and metal drinks containers on 1 October 2027, in line with the rest of the UK.
Ensure interoperability by including a single registration and reporting system for PET plastic and metal containers, reciprocal take-back arrangements and the same deposit level across the UK.
Extend the transitional period for glass containers until October 2031, meaning glass containers will carry a 0p deposit and be exempt from labelling requirements until this date.
Scheme management
The DMO for England, Scotland and Northern Ireland trades under Exchange for Change. Wales, however, have removed itself from the joint DRS implementation process and we are awaiting information as to how this will affect overall design of the schemes.
The DRS will be an industry-led scheme. Exchange for Change is a not-for-profit and is responsible, amongst several other obligations, for:
Outlining how retailers can comply with their take-back obligations
Establishing the deposit level and producer fees
Exploring the implications of regulatory misalignment between the four nations
Although the collection target for in-scope containers will legally rest with producers, they will be obliged to contract the DMO to fulfil these obligations on their behalf. This means the DMOs will be responsible for achieving collection rates of 70% in Year 1, 80% in Year 2, and 90% in Year 3.
There will be three key financial flows in the DRS:
The producer fee per container will be set by the DMO and will part-fund the management of the scheme. This means producers of in-scope containers are more financially responsible for the packaging they place on the market, implementing the ‘polluter pays principle’. The fees will be set with consideration of business size and material use.
Unredeemed deposits will part-fund the scheme to whatever extent they remain in the system. In short, where containers are not returned by consumers, the value of the deposit will be retained by the DMO. The higher the collection rate, the lower this revenue stream.
The deposit amount. In April 2026, it was confirmed that a flat 20p deposit would be applied to all in-scope containers.
The DMO will make up the remainder of its income through the material it collects and sells to reprocessors and recyclers.
Producer required actions
The definition of a scheme producer is manufacturer of in-scope containers, an importer, or a business who fills to order and is first to place the product on the market. Retailers will only be defined as producers when selling their own-branded drinks containers, but will have additional obligations described below. Producer obligations will include:
Placing the deposit amount on the container when it is sold. Note this only applies to filled drinks containers. The deposit does not need to be charged when supplying unfilled containers.
Registering with and reporting placed on market data to the DMO. Registration for Exchange for Change will begin in late 2026, and all in-scope containers will need to be registered and added to an Article List no later than 12 weeks prior to go-live (on 9 July 2027). The registration of in-scope containers will require the submission of several details, including material composition, label and adhesive types and the relevant barcode number.
Paying producer fees per container to the DMO.
Labelling and barcodes
Use of the Exchange for Change logo in accordance with the specified guidelines will be mandatory for producers from October 2027, to remain compliant with DRS regulations.
The Exchange for Change logo is available to download in a full set of standard, print‑ready and digital‑ready file formats. The primary logo, which has a vertical (portrait) orientation, is the preferred option. A secondary logo, with a horizontal orientation, is available for use only where the primary logo cannot be applied due to space constraints or other layout factors. Producers may also continue to additionally display the On-Pack Recycling Label (OPRL) or may wish to remove it and replace it with the Exchange for Change one.
Moreover, the logo icon must always be printed in a single colour. Black or white are the preferred colours, at the discretion of the producer. Where black or white are not suitable, other colours may be used, including brand colours or colours used within nutrition labelling, such as green, amber or red.
As per the regulations, there is a requirement for scheme containers to carry a scheme barcode as registered on the scheme Article List. Individual containers within the deposit return system must display a barcode to ensure that the product can be clearly identified in both Reverse Vending Machines and at Exchange for Change’s counting and sorting facilities. Existing product barcodes will need to be changed.
You can download the full logo and labelling guidance and more information on barcodes here.
Low-volume sales exemption
Producers will be granted an exemption if the number of containers per SKU does not exceed either 6,250 containers in the first 15 months of the scheme, or 5,000 containers in any year thereafter (from January 2029). Producers must still register for the scheme however, even if exemptions apply.
Retailer required actions
Grocery retailers are the only locations mandated as the primary return points. Urban grocery retailers with between 100m² and 199m² of sales space, and rural retailers below 200m², may apply for a size-based exemption. This means premises such as coffee and takeaway shops, restaurants, museums, and recreational facilities are not required to take back in-scope containers.
Supermarket and convenience store requirements will include:
Registering with the DMO
Charging consumers the deposit value on all in-scope containers sold, and ensuring this additional cost is clearly displayed. Note retailers will already have paid the deposit to the producers or wholesalers when purchasing the drinks.
Operating a return point for the scheme, unless eligible under an exemption criteria that will be set out by the DMO. Retailers will be able to receive returns either manually, or via reverse vending machines.
There will be grounds for which a retailer can refuse returns. These may include where a container is soiled, not empty, or unidentifiable as a DRS scheme article.
Retailers choosing to host reverse vending machines (RVMs) as their return point can now access a detailed specification for this on the Exchange for Change website. This sets out the minimum specifications and standards for RVM infrastructure required to support the automated collection of returned containers, such as container weight and shape detection accuracy limits. Retailers will need to obtain this evidence from their RVM suppliers. You can download the full specification here. Retailers choosing to install RVMs will not have to undergo a full planning permission process, instead they may install them under Permitted Development Rights.
Exchange for Change will maintain an article list of all in-scope containers. The list will include details such as product names and container characteristics. This list, updated daily, will be distributed to all RVMs to ensure valid products can be accepted.
Handling fee
A handling fee will be paid to retailers to compensate them for the non-recoverable expenses of hosting return points. This fee will be funded by the DMO's revenue streams outlined above.
The following criteria is considered by the DMO when calculating the fee:
Costs of purchase, lease, maintenance or upkeep of any collection and storage infrastructure. This might include reverse vending machines, or collection vehicles
Space requirements of return points
Additional staffing
Utility costs
In June 2026, Exchange for Change announced the Return Handling Fee (RHF) that will be paid to return point operators when the scheme launches in October 2027. The RHF will apply across both manual and automatic return points and has been designed on a tiered basis to reflect the volume of containers returned. Following industry consultation, the RHF has been set as follows:
Manual return points: 3p per container
Automatic return points:
Tier 1: 5p per container for up to 225,000 in-scope items returned annually
Tier 2: 1.3p per container for volumes exceeding 225,000 items annually
The fee will be assessed annually, using operational data gathered from producers and retailers to refine assumptions and improve the robustness of the model over time.
Interoperability and interaction with other packaging policy
As stated in the packaging EPR consultation response in 2022, producers of in-scope DRS containers will continue to meet recycling obligations by purchasing Packaging Waste Recycling Notes (PRNs) and Packaging Waste Export Recycling Notes (PeRNs) until the DRS is live.
However, they will not be obligated to pay EPR local authority waste management fees in 2025 onwards. This is because producers of in-scope containers are expected to help fund DRS pre-implementation costs instead. To be clear, unless the DRS is further delayed beyond 2027, producers of steel, aluminium and PET drinks containers between 150ml and 3L will not pay EPR waste management fees in 2025 onwards, but those of glass containers will.
How Ecosurety can support you
We can help ensure that you have the necessary high-quality data captured to enable future reporting requirements. This data can also enable our data specialists to provide you with early DRS cost modelling, based on the information we currently have from government.
We can conduct this work alongside other services such as EPR and plastic packaging tax preparation and modelling, to help you achieve a holistic understanding of your future exposure to costs, and opportunities to mitigate those costs.
Ultimately this can help you to improve the environmental credentials of the packaging that you produce.
If you have a question on DRS which is not captured in this article, our team of experts will be happy to help you. Please contact your account manager directly, call us on 0333 4330 370 or send an email to info@ecosurety.com.
As Policy Manager Louisa provides key support to our team, including preparing reports on environmental policy issues and maintaining awareness of new developments.
8 January 2025
We updated the 'Scheme management' section to explain that Wales has removed itself from the joint DRS implementation process.
