April 2025
UK DMO appointed
Understanding the Deposit Return Scheme (DRS) for Businesses in England
What is the Deposit Return Scheme?
The Deposit Return Scheme (DRS) is a UK-wide initiative launching in October 2027 that aims to boost recycling rates and reduce litter by placing a small refundable deposit (expected to be 20p) on eligible drinks containers. Consumers will be able to reclaim the deposit by returning the empty container to an approved return point.
The DRS is part of a wider strategy to support Simpler Recycling and Extended Producer Responsibility (EPR) in the UK.
It is being delivered by the UK Deposit Management Organisation (UK DMO), a not-for-profit, industry-led body appointed in April 2025 to oversee design, infrastructure, reimbursement systems, reporting, and stakeholder engagement.
What Drinks Containers Will Be Included?
The scheme will apply to most single-use drinks containers, including:
PET plastic bottles
Aluminium and steel cans
Size range: 150ml to 3 litres
Glass containers are excluded in England and Northern Ireland due to logistical and cost concerns. However, Wales and Scotland may choose to include glass in their regional approaches.
Why Is DRS Being Introduced?
The DRS is a proven method to reduce litter and improve recycling outcomes. Countries like Germany and Latvia have achieved return rates of up to 90%, and seen a 50%+ reduction in litter related to drinks containers. Benefits include:
Higher material recovery and circular economy performance
Cleaner streets, beaches and countryside
Reduced public sector costs for litter collection
Support for decarbonisation and Net Zero goals
Who Is Responsible Under the DRS?
The UK DMO is responsible for overseaing the scheme and for ensuring that the administration of the scheme runs smoothly. In addition drinks producers, retailers and other associated parties will have an important role in ensuring the scheme is a success. An overview of some off the main responsibilities are detailed below:
Drinks producers and importers
- Must register with the UK DMO
- Apply a deposit on every “in-scope” container they place on the market
- Pass on deposits through the supply chain and transfer them to the DMO
- Ensure all containers carry approved DRS labelling and barcodes
- Report volume data regularly to the DMO
Retailers (physical and online)
- Must charge and display the deposit at the point of sale (POS)
- Must refund the deposit when a consumer returns and empty, “in-scope” container
- May be required to host a return point—via manual return or Reverse Vending Machine (RVM), depending on their size, sales volume and premises
Are There Exemptions?
Yes. Exemptions from return point obligations may apply to:
- Small retailers with limited floor space
- Online-only businesses
- Organisations without public-facing premises (e.g. back-of-house only operations)
- Certain institutions (schools, hospitals, care homes)
Exemption criteria will be finalised and published by the UK DMO in 2026. Businesses may need to apply for exemptions and provide evidence.
Key Responsibilities at a Glance
| Business Type | DRS Responsibilities |
|---|---|
| Producers/Importers | Register, label correctly, apply deposit, transfer funds, report data |
| Retailers | Charge deposit, refund returned containers, operate return points (where required) |
| Hospitality venues | If drinks are sold in sealed containers for takeaway, the same rules apply |
| Closed-loop venues | Drinks consumed on-site in reusable packaging may be exempt from deposit rules |
What Businesses Should Do Now
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Register and Monitor DRS Developments
- Sign up for updates via UK DMO
- Prepare for registration and reporting duties in 2026
-
Review Packaging and Supply Chain
- Identify all drinks sold in single-use plastic or metal containers
- Begin labelling checks to meet barcode and deposit compliance standards
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Plan for Return Infrastructure
- Assess whether your premises may be selected as a return point
- Investigate Reverse Vending Machines (RVMs) or manual return logistics
- Start thinking about storage, space, and staffing
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Update POS Systems
- Ensure you can process deposits and refunds efficiently
- Train staff and clearly display pricing (product + deposit)
-
Align with EPR and Simpler Recycling
- DRS forms part of wider government reforms—coordination will reduce compliance risk and improve waste management outcomes
DRS Timeline: What’s Ahead
May–December 2025
Stakeholder working groups formed; operational planning begins
Throughout 2026
Infrastructure roll-out, training, public awareness campaigns
October 2027
DRS launches across England, NI, and Scotland
Frequently Asked Questions
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Will drinks become more expensive?
Yes—customers will pay a refundable deposit (around 20p) on top of the product price. This encourages container return and reduces litter. It’s not a tax, consumers get the full deposit back.
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Why isn’t glass included in England’s scheme?
Glass containers were excluded due to concerns over cost, safety and complexity in the retail and return infrastructure. Glass may still be included in devolved schemes in Scotland and Wales.
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Who pays for the scheme?
The DRS is producer-funded. Drinks producers and importers cover the cost of running the system via the UK DMO. Retailers acting as return points are reimbursed via handling fees.
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Do all retailers need to act as return points?
Not necessarily. Larger retailers and high-volume sellers are more likely to be required to host return points. Some small businesses may be exempt, but exemption rules will be confirmed in 2026.
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Are businesses that serve drinks on-site included?
No. Closed-loop systems (like pubs, restaurants and cafes where containers are consumed and collected on-site) are generally exempt. But businesses that sell drinks in sealed containers for customers to take away, will still need to charge the deposit.
Further information
As details emerge on how the scheme will operate for businesses we’ll update this page to reflect our current understanding.
