The UK government today (27) implemented the legislation for the deposit return scheme (DRS) for drinks containers in England and Northern Ireland.
The scheme will come into force in October 2027, post which businesses that produce or sell drinks in England and Northern Ireland will have new responsibilities. Similar responsibilities will apply in Scotland.
The Scottish Government will introduce separate legislation and provide separate guidance.
A deposit management organisation will be appointed in April 2025. They will provide more detailed guidance for businesses and set the deposit amount.
The deposit will apply to all single-use drinks containers that:
- are made wholly or mainly from aluminium or steel, or polyethylene terephthalate (PET) plastic
- have a capacity of between 150 millilitres and 3 litres
- are likely to be used only once or for a short period of time
Containers with a lid made from other materials are still included.
The deposit will not apply to containers if they are not single use and/or made from high-density polyethylene (HDPE). The scheme does not include containers used for liquid medicines (such as cough syrup) or flavour enhancers or sweeteners to add to drinks (such as syrups or hot sauce).
Retailers Responsibility
Under the scheme, all retailers selling drinks included in the scheme must:
- pay the deposit to producers or wholesalers when purchasing the drinks
- charge the deposit to consumers at the point of sale
Supermarkets, grocery stores, convenience stores and newsagents that sell drinks in the scheme must host a return point for drinks containers, unless they qualify for an exemption. The return point can be manual or automated using a reverse vending machine.
These retailers will be required to register with the deposit management organisation, pay the deposit back to consumers at the point of return (via voucher, card or cash), store returned containers for collection and display information so customers know how the scheme works
Retailers in urban areas are exempt from hosting a return point if they have a retail space of less than 100m2. They can still apply to be a voluntary return point. The deposit management organisation will provide guidance on exemptions and how to apply.
If a store is not automatically exempted, it can apply for an exemption if either the business is close to another return point or it is not possible (or easy) to host a return point due to the location, layout, size, design or construction of the premises.
However, to apply for one of these exemptions the store owner will need to provide evidence to the deposit management organisation. They will provide guidance on the criteria and how to apply.
Supplier responsibilities
Everyone in the drinks supply chain must charge the deposit to their buyers when they sell filled drinks containers included in the scheme. This includes drink producers, importers, wholesalers and retailers.
Businesses must only supply filled drinks containers that have been placed on the market by a registered scheme producer and carry the scheme labelling.
The deposit does not need to be charged when supplying unfilled containers. Producers and retailers also have additional responsibilities.
Producer responsibilities
Under the scheme a business will have producer responsibilities if it is a manufacturer of in-scope drinks (typically the brand owner), import drinks to the UK and/or fill and seal drink containers to order, for example a hospitality venue supplying crowlers.
Producers who are based in the Republic of Ireland and supply drinks to the Northern Ireland market should register with the scheme as a producer and meet the relevant responsibilities.
From 1 October 2027, producers must be registered with the deposit management organisation – your producer fee will be based on the number of containers you place on the market, apply the deposit to all containers included in the scheme and pay the deposits collected to the deposit management organisation when containers are sold to the next business in the supply chain.
The businesses will also need to comply with scheme labelling requirements and report the number of drinks placed on the market
The deposit management organisation will provide detailed guidance on how to comply. The organisation will set the deposit amount, the producer registration fees and payments to return point hosts.
It will also provide detailed guidance to help businesses in the drinks supply chain prepare for the DRS, inform consumers about the scheme, handle queries, be responsible for meeting the scheme’s collection targets, arrange collection and recycling of in-scope materials and make collected material available to producers for purchase.
