DRS simplified: How the UK’s Deposit Return Scheme will impact you
by Ramisa Shahjahan at 08:30 in Circular Economy, Environmental

A Deposit Return Scheme is a recycling initiative designed to encourage people to return used beverage containers by charging a small refundable deposit. In practice, it often looks like this:

1. When purchasing a drink, you (as a consumer) are charged an additional fee on any beverage bottle subject to the scheme.
2. After consuming the drink, you return the empty container to a designated collection point (such as a reverse vending machine or a store).
3. At the collection point, you receive a refund of that initial additional fee (could be either in cash, store credit, or via a digital refund).
4. The collected containers are then recycled or reused, thus helping reduce waste and environmental impact.
   

Why are Deposit Return Schemes Valuable?

Deposit Return Schemes are a useful tool in promoting environmental sustainability. The financial incentive from the deposit fee helps encourage the return of empty containers which can then be recycled or reused. Thus, reducing waste and increasing recycling rates. Many European countries have already successfully implemented Deposit Return Schemes to tackle their plastic, glass, and metal waste. This includes countries like Germany and Finland.

The UK's current status with DRS

England and Northern Ireland: In England and Northern Ireland, Deposit Return Schemes will begin from 1 October 2027. It will cover all single use beverage bottles and cans made from PET plastic, steel and aluminium that hold between 150 millilitres and 3 litres of liquid.

Deposits will not apply to containers that are reusable, made from high-density polyethylene (HDPE), or used for liquid medicines and drink additives like flavour enhancers, syrups, or hot sauces.

Scotland: Scotland is currently in the process of amending its Deposit Return Scheme regulations to align with England and Northern Ireland's.

Wales: In November 2024, the Welsh Government announced it was withdrawing from the UK DRS scheme, after disagreements over the inclusion of glass in the system. Wales would like to include glass containers within the scope of materials covered under the Deposit Return Scheme.

Currently, the nation is in its consultation stage. In Spring 2026, after analysis and evaluation of the consultation responses, an outcome document and next steps are expected to be published.

How will the DRS impact you?

For Manufacturers and Importers: You will need to ensure that all containers which are subject to the Deposit Return Scheme are registered and reported to the relevant Deposit Management Organisation (DMO). As a member of a DMO, you will be expected to pay fees based on the number of containers you have placed on the market. Additionally, you will need to ensure that the containers comply with any scheme labelling requirements.

Retailers: Retailers selling containers subject to the scheme will need to charge the deposit to consumers at the point of sale. Retail locations such as supermarkets, grocery stores, convenience stores and newsagents that sell drinks in the scheme must also help facilitate return points for these containers. Retailers in urban areas are exempt from hosting a return point if they have a retail space of less than 100m². The deposit management organisation should provide guidance on exemptions and how to apply.

Consumers: For consumers, the noticeable difference will be that all beverage containers subject to the Deposit Return Scheme will increase in price (as the additional 'deposit' fee will be added). If you do not return the containers to the designated return points, then you will not get this money back - so make sure you return your containers!

Summary

Deposit Return Schemes are highly effective systemsfor reducing waste, increasing recycling rates, and promoting environmental sustainability. However, it does come with additional costs and responsibilities particularly for manufacturers, importers and retailers. Additionally, consumer participation is integral for the functioning of a Deposit Return Scheme. To ensure consumers return bottles for efficacy, public awareness is key. Everyone needs to understand their role in the system and the importance of their participation. If you are interested in learning more, please contact us!

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