Guide to the UK’s Deposit Return Schemes

Last updated 5 April 2026

The UK’s Deposit Return Schemes (DRS) represent one of the most significant changes to drinks packaging regulation in decades.

Designed to increase recycling rates, reduce litter and improve material quality, DRS will fundamentally change how drinks containers are collected and financed.

Following several years of consultation and delay, DRS is now scheduled to go live on 1st October 2027 in England, Northern Ireland and Scotland, with Wales legislating for the same launch date under a separate scheme.

While legislation, governance and timelines are now confirmed, further operational detail continues to be developed by the scheme operators.

For producers, importers and retailers, DRS is no longer a future concept. It is a defined regulatory system that requires active preparation.

Understanding how the schemes work, and how they interact with other packaging regulations, will be essential for compliance and cost planning.

A Deposit Return Scheme places a refundable deposit on certain single-use drinks containers.

Consumers pay the deposit when purchasing a drink and receive it back when they return the empty container to a designated return point.

Once returned, containers are collected and recycled through a dedicated system, creating:

• Higher-quality recyclable materials
• Reduced contamination
• Lower levels of litter
• More efficient recycling processes

Deposit Return Schemes are already widely used across Europe and are recognised as one of the most effective ways to improve recycling rates for drinks containers.

The UK currently loses significant volumes of drinks containers through littering and inefficient recycling systems.

DRS is designed to address this by:

• Increasing recycling rates for drinks containers
• Reducing litter in public spaces
• Improving the quality of recyclable materials
• Supporting the transition to a more circular economy

Government policy expects the schemes to achieve collection rates of:

• 70% in year 1
• 80% in year 2
• 90% by year 3

Wales is working towards similar outcomes, although the phased introduction of glass means material performance will differ during the transition period.

Deposit Return Schemes apply to single-use drinks containers between 150ml and 3 litres.

While the UK is working towards a common launch date, the schemes are not fully identical across all nations.

The schemes in these nations include:

• PET plastic bottles
• Aluminium drinks cans
• Steel drinks cans

The scheme excludes:

• Glass containers
• HDPE containers (e.g. milk bottles)
• Liquid medicine containers (e.g. cough syrup)
• Containers for flavour enhancers and drink additives (e.g. syrups or hot sauce)

Wales will operate a separate Deposit Return Scheme.

However, unlike England, Scotland and Northern Ireland, Wales will include glass drinks containers within scope.

During a four-year transition period from October 2027 to October 2031, glass containers will:

• Be in scope of the Welsh DRS
• Carry a 0p deposit
• Be exempt from DRS labelling requirements

From October 2031 onwards, a full deposit and refund system for glass is expected to be introduced, subject to final scheme implementation.

During the transitional period, consumers will not pay a deposit on glass drinks containers nor receive a refund on return. This transitional approach allows businesses time to adapt packaging, labelling and logistics, while supporting a phased move toward full scheme integration.

Businesses placing drinks containers on the UK market will have a number of responsibilities under DRS.

These responsibilities will vary depending on business role, but most producers will need to:

• Register with the scheme operator
• Report in-scope products
• Apply approved scheme labelling
• Pay deposits and producer fees
• Maintain accurate product data

Producer registration is expected to open during Q3 2026, giving businesses time to prepare ahead of the 2027 launch.

Even low-volume producers may still need to register and report data, depending on their market activity.

The Deposit Management Organisation (DMO) for England, Northern Ireland and Scotland operates under the trading name Exchange for Change.

Exchange for Change is an industry-led, not-for-profit organisation that is responsible for:

• Designing scheme infrastructure
• Managing financial systems
• Registering producers
• Setting operational requirements
• Coordinating collection and return networks
• Managing return point networks

Wales is legislating for a separate scheme, with provisions to appoint its own DMO. The Welsh Government rejected Exchange for Change’s application to become its deposit return scheme administrator in April 2026 and reopened applications for the role, setting a new deadline of 2 June 2026.

All in-scope containers will require an approved DRS logo. This ensures containers can be identified within return systems and deposits can be correctly refunded.

Labelling requirements will apply from the launch date of 1 October 2027.

Producers must ensure:

• Correct logo format is applied
• Placement and sizing rules are followed
• Artwork changes are implemented in line with production timelines

Exchange for Change has published approved logo regulatory requirements.

Wales will apply a four-year exemption for glass containers, meaning no DRS labelling is required for glass between 2027 and 2031.

Some businesses may qualify for a low-volume exemption.

This applies where:

• Fewer than 5,000 units per SKU per year are placed on the market
• Or fewer than 6,250 units during the first 15 months

These producers:

• May be exempt from certain fees
• May not need to apply scheme labelling
• Must still register and report data

Understanding eligibility for this exemption is important for smaller producers and specialist product lines.

There are three key financial components within DRS.

The deposit

Consumers pay a refundable deposit when purchasing an in-scope drinks container.

The final deposit value has not yet been confirmed. It is expected to be announced during 2026, with industry anticipating a value of around 20p per container.

The producer fee

Producers will pay a fee for each in-scope container placed on the market.

This fee helps fund:

• Scheme infrastructure
• Collection logistics
• Recycling operations
• Administration

Further detail on producer fees is expected during Q2 2026.

Deposit reimbursement

When containers are returned:

• The consumer receives their deposit
• The container enters the recycling system
• The scheme records the returned material

This structure is designed to create high-value recyclable material streams.

Deposit Return Schemes operate alongside packaging Extended Producer Responsibility (pEPR), but the systems apply differently depending on material.

Under current policy:

• PET plastic, aluminium and steel drinks containers within DRS are excluded from pEPR disposal cost fees
• Glass containers remain within pEPR, including those in the Welsh scheme during its transition period

This means businesses must carefully allocate materials between systems.

Incorrect classification could lead to reporting errors or unexpected cost exposure.

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