Guide to the UK’s Deposit Return Schemes

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 scheduled to launch across the UK on 1 October 2027. Exchange for Change has been appointed as the Deposit Management Organisation (DMO) for all four nations.

For producers, importers and retailers, DRS is no longer a future concept. The schemes now have defined regulatory frameworks that require 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.

DRS is intended to increase the collection and recycling of drinks containers, reduce litter and improve the quality of recovered materials.

The collection targets differ between the schemes.

In England, Scotland and Northern Ireland, the statutory targets are:

• 70% in 2028
• 80% in 2029
• 90% from 2030 onwards

Wales has a different statutory trajectory:

• 70% in 2028
• 80% in 2029 and 2030
• 85% in 2031
• 95% from 2032 onwards

In 2031, at least 5% of the 85% Welsh collection target must be met by containers capable of reuse. From 2032 onwards, at least 15% of the 95% target must be met by reusable containers.

Exchange for Change has published material specifications for PET plastic, aluminium and steel drinks containers in England, Scotland and Northern Ireland. These set out practical design requirements to support acceptance by reverse vending machines and efficient processing.

In Wales, glass drinks containers will also be included from launch, with special arrangements applying during a transition period from 1 October 2027 to 30 September 2031.

The schemes in these nations include:

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

The schemes exclude:

• 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 under its own DRS regulations, but unlike England, Scotland and Northern Ireland, will also include glass drinks containers within scope.

During a four-year transition period from 1 October 2027 to 30 September 2031, glass containers will:

• Carry a 0p deposit
• Be exempt from DRS labelling requirements

From 1 October 2031, the transitional exemption is due to end, meaning Welsh glass containers will become subject to a deposit and the standard scheme-labelling and registered-barcode requirements, unless the regulations are amended.

During the transitional period, consumers will not pay a deposit on glass drinks containers or receive a refund when returning them. This approach gives businesses time to adapt their packaging, labelling and logistics while supporting a phased move towards full scheme integration. Detailed requirements for accepting and collecting glass through the return network during this period are still being developed.

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

Exchange for Change previously indicated that producer registration was expected to open in Q3 2026. A confirmed opening date has not yet been announced. Businesses should check its latest operational guidance for confirmation of the registration timetable and process. Separate arrangements for Wales are being developed following Exchange for Change’s appointment as DMO.

Producers must still register and report volumes for low-volume product lines, even where those lines are exempt from deposits, producer fees and scheme labelling.

Exchange for Change has been appointed as the DMO for all four UK nations. However, there will be three legally distinct schemes: one for England and Northern Ireland, one for Scotland and one for Wales. Producers must therefore follow the requirements applying in each market, even where operational arrangements are aligned.

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

The Welsh Government confirmed Exchange for Change’s appointment on 20 August 2026, completing its appointment across all four nations. Wales retains distinct requirements, most notably the inclusion of glass drinks containers.

With the exception of registered low-volume product lines and Welsh glass containers during the four-year transition period, in-scope containers must carry an approved DRS logo and registered return code.

These requirements will apply when the schemes launch on 1 October 2027. Containers displaying DRS-specific labelling must not be sold to consumers before that date.

Producers must ensure:

• Correct logo format is applied
• Placement and sizing rules are followed
• Artwork changes are implemented in line with production timelines
• Barcodes for all non-exempt product lines are audited, updated and registered with Exchange for Change

Exchange for Change has published approved logo regulatory requirements for in-scope PET plastic, aluminium and steel containers.

Welsh glass containers will be exempt from DRS labelling and return-code requirements from 1 October 2027 to 30 September 2031. Businesses supplying the Welsh market should monitor Exchange for Change’s guidance for any further updates reflecting the Welsh regulations.

With the exception of registered low-volume product lines, in-scope products must carry a DRS-compliant barcode registered on the official Scheme Article List. This includes specific data rules for UK-specific Global Trade Item Numbers (GTINs), international barcodes, and individual containers within multipacks.

For full technical specifications and the latest policy updates on barcode fees and structures, please refer directly to:

• Dimensions & Layouts: ⁠Exchange for Change Material Specification
• Latest Policy Updates: ⁠Exchange for Change June Newsletter
• Data & GTIN Allocation Guidance: ⁠GS1 UK DRS Barcode Readiness Update

Producers may register eligible product lines as low-volume products. This applies to product lines with:

• Fewer than 5,000 units placed on the UK market per year; or
• Fewer than 6,250 units during the first 15 months of the scheme.

Registered low-volume product lines are:

• Exempt from producer fees
• Exempt from applying a deposit
• Exempt from the scheme logo and barcode requirements
• Still subject to producer registration and volume-reporting requirements

The exemption applies to individual product lines rather than to the producer’s entire business.

There are four key financial components within DRS.

1. The deposit

Exchange for Change has confirmed a flat 20p deposit for in-scope PET plastic, aluminium and steel drinks containers in England, Scotland and Northern Ireland.

Welsh glass containers will carry a zero-pence deposit during the transition period from 1 October 2027 to 30 September 2031. Following Exchange for Change’s appointment in Wales, businesses should monitor its updated guidance for confirmation of the deposit arrangements applying to other Welsh materials.

For deposit-bearing containers, the deposit will be charged at the point of purchase and refunded in full when the empty container is returned to an automatic reverse vending machine or manual return point.

2. The producer fee

Producer fees help fund scheme infrastructure, collection logistics, recycling operations and administration.

Exchange for Change has announced that producer fees will be set at 0p per container during the first 15 months of the scheme, from October 2027 to December 2028.

Based on current projections, fees are then anticipated to be:

• 0.6p per aluminium or steel container
• 2.3p per PET plastic container

These anticipated fees would apply from January 2029 to December 2032. However, Exchange for Change will review, validate and reconfirm the figures in May 2027, before the scheme launches, and will continue to review fees annually once DRS is operational.

Registered low-volume product lines will remain exempt from producer fees. Further information will be needed on the longer-term fee arrangements for Welsh glass containers.

3. 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.

4. Return handling fees

In England, Scotland and Northern Ireland, retailers operating return points will receive a Return Handling Fee for each eligible container accepted. Exchange for Change has confirmed different rates for manual return points and reverse vending machines, designed to help cover operating costs. Businesses operating in Wales should monitor Exchange for Change’s guidance for confirmation of the Welsh arrangements.

Consumers will return empty containers through reverse vending machines or manual return points. In England, Scotland and Northern Ireland, grocery retailers will generally be required to operate a return point, although automatic and application-based exemptions are available in specified circumstances.

Exchange for Change has also confirmed grant funding to support eligible small independent retailers with the cost of installing reverse vending machines.

The currently published exemption criteria and retailer support package apply to England, Scotland and Northern Ireland. Urban retailers with less than 100m² of retail space are automatically exempt. Urban stores between 100m² and 199m² and rural retailers with less than 200m² may apply for a size-based exemption. Applications may also be possible on grounds including proximity to another return point, heritage or listed-building restrictions, site access or lack of access to utilities.

Businesses operating in Wales should check the separate Welsh requirements as further operational guidance is published.

Exchange for Change has published material specifications for drinks containers covered by the schemes in England, Scotland and Northern Ireland. These specifications address container shape, dimensions, stability, compaction and material thickness, helping ensure containers can be accepted by reverse vending machines.

Producers using non-standard or non-cylindrical container formats should review the requirements early. As the current specifications do not cover Wales, businesses supplying the Welsh market should monitor Exchange for Change’s guidance for further updates.

Deposit Return Schemes operate alongside packaging Extended Producer Responsibility, commonly referred to as packaging EPR. However, the treatment of drinks containers differs by material.
Under current policy:

• In-scope PET plastic, aluminium and steel drinks containers are excluded from packaging EPR disposal cost fees
• Glass drinks containers remain subject to packaging EPR disposal cost fees, including Welsh glass containers during the four-year DRS transition period

Businesses must therefore identify and report their drinks containers correctly under the relevant packaging EPR and DRS requirements. Inclusion in DRS should not automatically be treated as an exemption from every packaging compliance obligation. Incorrect classification could lead to reporting errors or unexpected costs.

If you need support preparing for DRS or understanding how it could affect your packaging EPR compliance and costs, we’re here to help.

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