The Deposit Return Scheme (DRS) has been rumbling in the background for some time but recent news means it may not be so far away for the UK after all.
With return handling fees confirmed and an October 2027 launch date firmly in place, it’s time for the industry to start getting ready for the new scheme.
Exchange for Change, the organisation responsible for delivering the scheme across England, Scotland and Northern Ireland, has confirmed that retailers operating manual return points will receive 3p per container returned. Stores using reverse vending machines (RVMs) will receive 5p per container on the first 225,000 containers returned each year, before a lower rate applies above that threshold.
More Than a Recycling Scheme
DRS will add a 20p deposit to eligible drinks containers. Customers get that money back when they return the empty bottle or can to a return point. The scheme will cover PET plastic bottles and metal drinks cans between 150ml and 3 litres.
While it’s straightforward for shoppers, for retailers, it’s a little more complicated. Stores selling in-scope drinks will need to register with Exchange for Change, charge deposits correctly, manage returns and communicate the scheme to customers. Many will also need to decide whether they want to operate a return point or apply for an exemption.
Much of the conversation around DRS has focused on cost and complexity, particularly for smaller retailers where storage space is already at a premium. Empty containers need to be collected, stored and managed safely. Not to mention staff training to help customers – especially in the initial stages.
That said, there is of course an upside. Every container returned creates another visit to the store. International experience suggests that many shoppers redeem deposits while making additional purchases. Retailers operating return points may therefore benefit not only from handling fees but also from increased footfall and basket spend.
The Republic of Ireland introduced its own deposit return scheme in 2024 and has already collected billions of containers, and return rates continue to rise as consumers become familiar with the process. However, it hasn’t come without its challenges. Retailers have reported issues with machine downtime, customer confusion and containers failing to scan correctly.
The next 18 months
For many retailers, DRS will represent one of the biggest operational changes since the introduction of tobacco display regulations or the growth of parcel services.
The confirmation of handling fees is important because it allows retailers to begin making practical decisions. Questions around space, equipment, staffing and exemptions can now move from theory to planning.
