UK Government makes key announcements on EPR and the Deposit Return Scheme

The UK Government has made two significant policy announcements this week that will shape the future of packaging waste and recycling in the UK: confirmation of the official operator for the Deposit Return Scheme (DRS) and proposed amendments to the packaging Extended Producer Responsibility (EPR) regulations.

The newly formed UK Deposit Management Organisation Ltd (UK DMO) has been formally appointed to run the DRS for single-use drinks containers in England, Northern Ireland and Scotland. The not-for-profit organisation will be responsible for designing and operating the scheme ahead of its planned launch in October 2027.

The DRS will apply to PET plastic bottles, steel and aluminium cans from 150ml to 3 litres, with consumers paying a small deposit refunded upon return of the container. The scheme is intended to reduce litter, increase recycling rates, and support the transition to a more circular economy.

Estimates suggest that 6.5 billion drinks containers are discarded annually in the UK, many of which end up in landfill or as litter. The new system aims to keep these valuable materials in circulation and improve recycling infrastructure across the three nations.

In response to long-standing calls from industry for stronger producer leadership in the EPR scheme, the government also notified an amending Statutory Instrument (SI) on 6 May 2025. This SI will be laid before Parliament in November, with changes intended to take effect ahead of year 2 of the EPR scheme.

Key amendments include:

• Provision for appointing a Producer Responsibility Organisation (PRO), enabling more direct producer leadership in the scheme’s operation. This marks a significant policy shift aligned with international best practice, recognising industry calls for greater accountability and influence over outcomes.

• Extension of closed-loop offsetting to include food-grade plastic. This measure supports the UK’s wider objectives to reduce reliance on virgin plastic and encourage high-quality recycling, particularly in the food and beverage sector.

Together, these developments represent a clear signal of intent from government to strengthen the role of industry in delivering environmental outcomes, while investing in the systems needed to reduce waste and boost recycling.

Martin Trigg-Knight, Director of Compliance at Clarity Environmental, welcomed the announcements:

“This week’s announcements mark an important step forward for the UK’s packaging and recycling system. The appointment of the UK DMO is a key milestone in developing a Deposit Return Scheme that is fair, efficient and practical, and we welcome the focus on collaboration and system design that works for all stakeholders.

Progress on Extended Producer Responsibility is also encouraging, particularly the move to enable the appointment of a Producer Responsibility Organisation, which reflects industry calls for greater leadership and accountability.

At Clarity, we’re committed to helping our members navigate these reforms and ensure successful, joined-up delivery across the sector.”