DRS Producers to Pay No Fees for First 15 Months

Exchange For Change (EfC) has confirmed that drinks producers will pay no producer fees during the first 15 months of the UK’s Deposit Return Scheme (DRS), providing greater cost certainty ahead of its launch on 1 October 2027.

Under the proposed stepped fee structure, the producer fee will remain at zero from October 2027 until December 2028. Anticipated fees will then apply to metal and PET plastic drinks containers from January 2029, although these rates remain subject to review and validation.

Exchange For Change has announced the following fee structure:

• October 2027 to December 2028: 0p per container for all applicable materials
• January 2029 to December 2032: 0.6p per aluminium or steel container
• January 2029 to December 2032: 2.3p per PET plastic container

The introductory zero fee is intended to reduce the financial burden on businesses during the early stages of the scheme while producers adapt their operations and systems to the new requirements.

However, the anticipated rates from January 2029 are not yet final. EfC will review, validate and reconfirm the producer fees in May 2027, before the scheme launches.

The fees will subsequently be reviewed annually once DRS is operational and may be adjusted as further cost forecasts, contractual pricing and operational data become available.

Glass will be included within the Welsh scheme from October 2027, although no deposit will be charged on Welsh glass containers until October 2031. EfC has not yet published an anticipated post-2028 producer fee for glass containers included within the Welsh scheme.

Producer fees are separate from the refundable deposit paid by consumers.

In England, Scotland and Northern Ireland, a flat 20p deposit will be added to every in-scope plastic or metal drinks container. The same deposit will apply to these materials in Wales, although glass containers included within the Welsh scheme will carry no deposit until October 2031.

Consumers will be able to reclaim the deposit by returning the empty container to an approved return point.

Producer fees, meanwhile, are charges paid by drinks producers for each in-scope container they place on the market. These fees will contribute towards the net cost of operating the DRS, alongside income from the sale of collected materials and deposits that consumers do not redeem.

Although the producer fee will initially be set at zero, producers will still need to meet their wider DRS obligations from the scheme’s launch.

EfC developed the intended structure following consultation with businesses across the drinks supply chain, including producers and retailers of different sizes.

The introductory 0p fee recognises the level of investment and preparation businesses will need to undertake ahead of October 2027. This may include updating packaging and labelling, introducing new barcodes, changing internal data systems and adapting financial arrangements across the supply chain.

According to EfC, the stepped approach is intended to support businesses during the scheme’s early stages while maintaining its longer-term financial sustainability.

Russell Davies, Chief Executive of Exchange For Change, said the announcement would help businesses with their preparation and planning. He added at, as a not-for-profit organisation, EfC was committed to keeping producer fees as low as possible while supporting the scheme’s long-term financial sustainability.

The initial 0p producer fee will provide some short-term cost relief, but it should not be interpreted as an exemption from DRS requirements.

Businesses placing in-scope drinks containers on the UK market will still need to prepare for registration, reporting, labelling and other operational obligations. Producers will also need to manage the 20p deposit as it moves through the supply chain.

The announcement provides an initial basis for forecasting future costs. However, producers should treat the post-2028 rates as planning assumptions rather than confirmed charges and allow for potential changes in their budgets.

Most importantly, businesses should avoid focusing solely on the producer fee. Even without this charge during the first 15 months, the operational work and investment required to comply with DRS could be substantial.

Although DRS will not launch until October 2027, affected businesses should use the remaining preparation period to:

• Determine which products and containers will fall within the scheme
• Calculate the number of in-scope containers placed on the market
• Review the potential cost impact of the anticipated producer fees
• Prepare systems to collect and report container-level data
• Identify the labelling, barcode and packaging changes that will apply
• Consider how the 20p deposit will be managed through pricing, invoicing and supply-chain arrangements
• Monitor EfC announcements, particularly the validation of producer fees expected in May 2027
• Engage with suppliers, customers and retail partners to clarify responsibilities

The producer fee announcement is the latest in a series of milestones ahead of the DRS launch. EfC has also confirmed the 20p deposit, Return Handling Fees for return point operators, return point exemption processes and grant support for eligible small independent retailers.

Together, these announcements are providing businesses with a clearer picture of how DRS will operate. However, further details are likely to develop as EfC secures contractual pricing and gathers more reliable cost and operational data.

With launch now just over a year away, producers should be identifying affected products and building DRS requirements into their packaging, data, financial and supply-chain planning.

Clarity can help businesses understand how the Deposit Return Scheme will affect their operations, identify in-scope containers and prepare for upcoming registration and reporting requirements.

Contact Clarity to discuss how your business can prepare for the October 2027 launch.