On 20 August 2026, the Welsh Government appointed Exchange for Change (EfC) as the Deposit Management Organisation (DMO) for Wales.
EfC had already been appointed to operate the schemes in England, Scotland and Northern Ireland, meaning the same organisation will now oversee the delivery of the Deposit Return Scheme (DRS) across all four UK nations. However, this does not mean that every requirement will be identical.
With the UK-wide launch date of 1 October 2027 now just over a year away, attention is increasingly shifting from the overall design of DRS towards its practical implementation.
A number of important policies have been confirmed in recent months, including the deposit value, producer fees, Return Handling Fees and retailer exemptions.
However, several operational details still need to be finalised before the schemes go live.
This article outlines what we already know about DRS across the UK, the differences between the nations and what remains to be confirmed.
What Has Been Announced?
Scheme Launch and Scope
DRS is scheduled to launch across the UK on 1 October 2027.
In England, Scotland and Northern Ireland, the schemes will generally cover single-use drinks containers with a capacity of 150ml to 3 litres that are made wholly or mainly from:
- PET plastic
- Aluminium
- Steel
Wales will operate a different scheme, most notably through the inclusion of glass drinks containers.
Glass in Wales
Wales will include glass drinks containers within its DRS from launch, unlike England, Scotland and Northern Ireland.
However, transitional arrangements have been agreed to reduce the impact of this difference on the UK internal market.
Between 1 October 2027 and 30 September 2031, in-scope glass containers in Wales will:
- Carry a zero-pence deposit
- Be exempt from DRS labelling requirements
During this period, consumers will not pay a deposit on glass drinks containers or receive a refund when returning them.
Subject to any further regulatory changes, these transitional arrangements are due to end on 1 October 2031. Welsh glass containers would then become subject to a deposit and the relevant labelling and registered return-code requirements.
Further operational guidance will be needed to explain how in-scope glass will be collected, reported and managed during the transition period.
Labelling Requirements
Exchange for Change has published the regulatory requirements for the official DRS logo.
With the exception of qualifying low-volume product lines and Welsh glass during its transition period, in-scope containers will need to carry:
- The approved DRS logo
- A registered DRS-compliant barcode or return code.
Containers displaying DRS-specific labelling must not be sold to consumers before the scheme launches on 1 October 2027.
Low-Volume Product Exemptions
Individual low-volume SKUs placing fewer than 5,000 units on the UK market each year, or fewer than 6,250 units during the scheme’s first 15 months, may be registered as low-volume products.
Eligible low-volume SKUs will not need to:
- Apply the deposit
- Pay producer fees
- Carry the DRS logo or registered barcode
However, producers will still need to register these products and report the relevant volumes to Exchange for Change.
Retailer Exemptions
Groceries retailers will generally be required to operate a return point unless they qualify for an exemption.
Across England, Scotland and Northern Ireland:
- Urban groceries retailers with less than 100m² of retail space will be automatically exempt.
- Urban retailers with a sales area of between 100m² and 199m² may apply for a size-based exemption.
- Rural retailers with a sales area of less than 200m² may also apply.
- Further application-based exemptions may be available due to proximity to another return point, heritage or listed-building restrictions, site access or a lack of access to utilities.
Applications will be subject to approval by Exchange for Change and will depend on there being sufficient alternative return-point provision in the local area.
Separate operational guidance will be required for retailers operating in Wales.
The Deposit Fee
Exchange for Change has confirmed that a flat 20p deposit will apply to in-scope PET plastic, aluminium and steel drinks containers.
Consumers will pay the additional 20p when purchasing the drink and will be able to reclaim the full amount when they return the empty container through an approved return point.
The use of a flat deposit means the same amount will apply regardless of the material or size of an eligible container.
Welsh glass containers will carry a zero-pence deposit during the four-year transition period from 1 October 2027 to 30 September 2031.
Return Handling Fee
Retailers and other operators accepting returned containers will receive a Return Handling Fee intended to contribute towards the costs of providing a return point.
For England, Scotland and Northern Ireland, Exchange for Change has confirmed the following rates:
- Manual return points: 3p per eligible container
- Automatic return points: 5p per container for the first 225,000 eligible containers returned annually
- Automatic returns above 225,000: 1.3p per container
These payments are intended to contribute towards costs such as equipment, staff training, storage and the floor space used to collect or store returned containers.
The fees will be reviewed before the scheme launches and annually once DRS is operating. Separate Return Handling Fee arrangements for Wales remain to be confirmed.
Producer Fee
Exchange for Change has also announced its intended producer fee structure.
Producer fees will be set at 0p per container for the first 15 months of the scheme, from October 2027 until December 2028.
Based on current projections, EfC anticipates that the following fees will then apply from January 2029 to December 2032:
- 6p per aluminium or steel container
- 3p per PET plastic container
These figures are not yet final. EfC intends to review, validate and reconfirm the rates in May 2027 before the scheme launches. Fees will then be reviewed annually once DRS is operating.
Producer fees will help fund the net operating costs of DRS alongside other scheme income, including revenue from collected materials and unredeemed deposits.
Further information will be needed on the producer-fee arrangements for Welsh glass containers.
Reverse Vending Machines
Exchange for Change has published its technical specification for Reverse Vending Machines (RVMs).
RVMs will provide one of the main ways for consumers to return eligible drinks containers and reclaim their deposits.
EfC has also announced £60 million of grant funding to support up to 10,000 qualifying small independent retailers across England, Scotland and Northern Ireland with the cost of installing RVMs.
Eligible retailers may receive £6,000 per site, paid in three annual instalments of £2,000 following installation of an RVM.
Monthly Readiness Survey for Retailers
In September 2026, Exchange for Change launched a monthly retailer readiness survey.
The anonymous survey is intended to track how prepared retailers feel for DRS and the practical steps businesses are taking ahead of the October 2027 launch.
The results should help EfC identify where further guidance or support may be needed as implementation progresses.
What Remains to Be Confirmed?
Although much of the DRS framework is now established, several important operational details are still outstanding.
Collection Logistics
One of the largest remaining areas of uncertainty concerns the collection of returned containers.
Exchange for Change is responsible for establishing the logistics system that will move collected containers from return points to counting, sorting and recycling infrastructure.
Further detail is still required on areas including:
- Collection frequencies
- Collection booking arrangements
- Storage and container requirements
- Minimum collection volumes
- Arrangements for hospitality businesses
- The organisations that will ultimately carry out collections.
Registration and Reporting Processes
Producers will be required to register with Exchange for Change and provide information about the in-scope drinks containers they place on the market.
EfC had previously indicated that producer registration was expected to open in Q3 2026. However, as of September 2026, a confirmed opening date and full details of the registration process had not been published.
Businesses are also awaiting further practical guidance on areas such as:
- Information required during registration
- Product and SKU registration
- Reporting formats
- Reporting deadlines
- Payment and reconciliation processes.
Separate arrangements will also need to reflect the requirements of the Welsh scheme following EfC’s appointment as Wales’ DMO.
Arrangements for Welsh Glass
Although the regulatory treatment of Welsh glass during the transitional period has now been established, some of the practical arrangements remain outstanding.
Further guidance will be needed on how in-scope glass containers will be collected, reported and managed while carrying no deposit and remaining exempt from DRS labelling
This will be particularly important for retailers and producers operating across multiple UK nations.
A List of Accredited RVM Suppliers
While the technical requirements for Reverse Vending Machines have already been published, businesses are still awaiting the definitive list of RVM suppliers accredited for use within the schemes.
Exchange for Change has indicated that it expects to publish the first list of accredited RVMs in October 2026.
Publication of the accredited supplier list will be particularly important for retailers deciding what equipment to procure ahead of launch.
What Happens Next?
The broad structure of the UK DRS is now increasingly clear.
Businesses know when the scheme will launch, which packaging materials will be included, the deposit consumers will pay and many of the financial and labelling requirements that will apply.
The remaining uncertainty increasingly relates to how the scheme will operate in practice.
Over the coming months, businesses should therefore expect further guidance from Exchange for Change covering registration, reporting, collections, logistics and other operational requirements.
Businesses should now:
- Identify which products and SKUs fall within scope
- Prepare accurate product, material, volume and barcode data
- Review packaging artwork and production lead times
- Determine whether new UK-specific barcodes will be required
- Assess their likely return-point obligations and any available exemptions
- Consider whether manual-return facilities or RVMs will be required
- Monitor further guidance covering registration, logistics and Welsh arrangements
