The UK Deposit Return Scheme Explained

Starting from 1 October 2027, businesses in England and Northern Ireland will need to comply with the UK government’s new Deposit Return Scheme.

This scheme is set to revolutionise the way drinks containers are sold, collected, and recycled. If your business sells, distributes, or handles drink containers, it’s essential to be prepared for this update.

This guide will help you understand the scheme, who it affects, and the steps you should take now to get ready.

What is the Deposit Return Scheme?

The Deposit Return Scheme is a UK government initiative aimed at reducing litter, improving recycling rates, and making packaging disposal more consistent nationwide.

Under the DRS, a small deposit will be added to the sale of certain drink containers. Consumers can reclaim this deposit by returning the empty container to a designated return point.

The scheme is overseen by a Deposit Management Organisation appointed by the government.

What Materials Are Included?

The scheme applies to single-use drinks containers primarily made of:

Aluminium
Steel
PET plastic

These containers must fall within the size range of 150ml to 3 liters.

What Materials Are Excluded?

Glass (for England and Northern Ireland only)
High-density polyethylene (HDPE) like milk bottles
Multi-use or refillable containers

UK Deposit Return Scheme drinks packaging

How Does DRS Impact Businesses?

If you sell or produce drinks in single-use containers, the Deposit Return Scheme brings new responsibilities for both retailers and producers.

Here’s what you need to know to adapt to the changes.

Retailers are required to add a deposit to the price of eligible drinks and accept containers back for a refund.

To comply with the DRS, you’ll need to:

Register as a return point with the Deposit Management Organisation
Safely store returned items
Display clear signage to inform customers about your participation in the scheme

Certain retailers may be eligible for exemptions, such as those with small shop sizes in urban areas, mobile vendors, and schools.

However, any exemptions must be approved by the DMO.

Producers must also take steps to adhere to the DRS. This includes:

Registering with the DMO
Applying the deposit to all applicable products
Ensuring packaging is clearly labelled
Reporting the volume of containers put on the market

Implementing these changes may require adjustments to your operations.

However, it’s all part of the collective effort towards improved recycling practices and reducing waste across the UK.

By embracing the Deposit Return Scheme, your business can contribute to a more sustainable future while meeting your legal obligations.

Stay informed and prepared for the transition to a greener economy.

Why Is This Being Introduced?

The UK currently disposes of around 14 billion plastic bottles and 9 billion cans annually, significantly contributing to litter and landfill volumes.

Drink containers make up 33.4% of UK litter, and the DRS is expected to reduce this and enhance recycling rates.

Countries with similar schemes, like Germany, have seen return rates as high as 98%.

Benefits of DRS

Environmental
The DRS helps boost recycling rates by encouraging the return of bottles and cans. This reduces plastic and metal pollution, keeping waste out of landfills and nature. It also supports a circular economy by putting materials back into production

Operational:

With a standardised system across the UK, DRS removes the confusion for businesses that operate in multiple locations. It also makes waste sorting clearer and easier for staff on the ground.

Reputational:

Getting on board with DRS shows customers your business cares about sustainability.

It helps build trust with eco-conscious consumers and positions your brand as part of the solution.

How to Prepare

Audit Your Packaging: Identify products sold in eligible containers and quantify quantities
Update Your Systems: Ensure your system can handle deposit amounts and refunds
Register With The DMO: Stay informed and register to meet collection and refund obligations
Educate Your Staff: Train your employees to manage deposits, returns and educate customers
Partner With A Trusted Waste Provider: Work with a reliable waste broker like Waste Managed for compliance and smooth transition support