UK Deposit Return Scheme

Complete Guide for Retailers in the UK

Get Ready for the UK Deposit Return Scheme (DRS)

Prepare your business for the 1st October 2027 deposit return scheme UK with this guide to the latest regulations, machine requirements, and compliance solutions.

Deposit Return Scheme

What is a Deposit Return Scheme (DRS)?

The deposit return scheme UK is a government-backed recycling initiative that adds a small, refundable deposit to the price of single-use drinks containers. When a consumer buys a drink, they pay an additional 20p. When they return the empty container to a designated return point such as a reverse vending machine (RVM), the deposit is refunded in full.

As the most ambitious deposit return scheme UK has ever introduced, DRS is designed to dramatically increase recycling rates for plastic bottles and aluminium cans, reduce litter on streets and coastlines, and support the transition to a circular economy. The UK government has set a target of achieving a 90% return rate by the third year of operation.

The UK deposit return scheme will be administered by Exchange for Change (DMO), across England, Northern Ireland, and Scotland. Wales will operate a separate but aligned scheme under its own DMO.

What is a Deposit Return Scheme

Key Dates

UK DRS Regulations Timeline & Key Dates

The road to the deposit return scheme UK launch has been years in the making. Understanding these UK DRS regulations milestones is essential for planning your compliance strategy.

January 2025

DRS Legislation Passed

The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025 came into force, establishing the legal framework.

May 2025

UK DMO Appointed

Exchange for Change was designated as the Deposit Management Organisation for England, Northern Ireland, and Scotland.

June 2025

Scotland Aligns

Scottish DRS legislation was amended to align with the England and Northern Ireland framework — same materials, same DMO.

February 2026

Wales Regulations Laid

The Welsh Government laid DRS regulations, including glass containers; secured a UKIMA exclusion, and began appointing a separate DMO.

April 2026

20p Deposit Confirmed

Exchange for Change confirmed a flat 20p deposit for all in-scope containers, chosen for operational simplicity and to meet the 90% return target.

Q3–Q4 2026

Producer & Retailer Registration Opens

Businesses will be able to register with Exchange for Change and begin reporting placed-on-market data.

July 2027

Article List Deadline

All in-scope containers must be registered and added to the Article List at least 12 weeks before go-live.

October 2027

DRS Goes Live

The scheme officially launches across England, Scotland, Northern Ireland, and Wales. Deposits are charged, and refunds begin.

How It Works

How Does the Deposit Return Scheme UK Work?

The deposit return system follows five straightforward steps from purchase to closed-loop recycling. At the heart of the process is the reverse vending machine (RVM), which automates container verification, collections and refund deposits.

STEP 01
Purchase

Consumer buys a drink. A 20p deposit is added to the price at the point of sale.

STEP 02
Consume

The consumer enjoys their drink and keeps the empty container rather than binning it.

STEP 03
Return

The empty container is returned to a reverse vending machine or a manual return point at a participating retailer.

STEP 04
Refund

The machine scans the barcode, verifies eligibility, and refunds the 20p via voucher, or digital payment.

STEP 05
Recycle

Containers are collected, sorted, and sent to recycling facilities — closing the loop in the circular economy.

Who's Affected

Who Is Affected by the Deposit Return Scheme UK?

The recycling deposit scheme UK touches almost every part of the drinks supply chain. Understanding your obligations early is key to finding the right DRS compliance solutions.

Producers & Importers

Brand owners, manufacturers, and importers of drinks in eligible containers.

  • Register with Exchange for Change and report placed-on-market data
  • Pay producer fees per container to fund scheme operations
  • Apply the Exchange for Change logo to all in-scope packaging
  • Register containers on the Article List by 9 July 2027
  • Submit material composition, label types, and barcode data

Retailers & Supermarkets

Shops selling in-scope drinks will need to charge deposits and host a return point.

  • Charge the 20p deposit at point of sale on all eligible containers
  • Host a return point — either an RVM or manual collection
  • Allocate space for returned containers and storage logistics
  • Stores under 100m² in urban areas may be exempt from hosting
  • Display clear signage to guide customers through the process

Hospitality

Hotels, restaurants, pubs, cafes, festivals, and food-service operators.

  • Determine if drinks are consumed on-site or taken away
  • Off-trade containers will carry the deposit
  • Plan how to manage returns in space-constrained venues
  • Train staff on DRS processes and customer communication
  • Consider tailored RVM solutions for high-traffic hospitality sites

Local Authorities

Councils and waste management bodies coordinating alongside DRS infrastructure.

  • Understand impact on kerbside collection — DRS materials shift to the new scheme
  • Coordinate with the DMO on data sharing and logistics
  • Support public awareness and community education campaigns
  • Plan for reduction in drinks containers in general waste streams
  • Monitor cross-border compliance near regional boundaries

Why It Matters

Benefits of the Deposit Return Scheme UK

A well-implemented deposit return scheme UK wide creates value across environmental, economic, and social dimensions for businesses and communities.

Environmental

  • Reduces litter on streets, parks, and coastlines
  • Targets a 90% collection rate for drinks containers
  • Produces clean, high-quality recycled material streams
  • Lowers carbon emissions from virgin material production

Economic

  • Generates revenue from high-value recyclable materials
  • Drives innovation in packaging and return-point technology
  • Reduces municipal waste collection and disposal costs
  • Creates new jobs in recycling and collection infrastructure

Social

  • Financial incentives encourage broad public participation
  • Builds community engagement in sustainable practices
  • Strengthens brand reputation for participating businesses
  • Provides particular benefit to lower-income households

Get Prepared

How to Prepare Your Business for the UK DRS

The deposit return scheme UK is no longer a future concept — it's a defined regulatory system that requires active preparation. Use this checklist to get your business on track.

01

Audit your packaging

Identify which of your products use PET, aluminium, or steel containers between 150ml and 3 litres.

02

Determine your role

Are you a producer, importer, retailer, or hospitality operator? Your DRS obligations differ by role.

03

Plan return-point space

If you're a retailer, assess where a deposit return scheme UK machine or manual return point could be installed — including storage for returned containers.

04

Budget for deposit return scheme machine installation

Research RVM options that match your throughput, space, and refund requirements. Endlos offers a range of machines designed for the UK market.

05

Update labelling

Prepare to add the Exchange for Change logo and deposit messaging to all in-scope container labels before launch.

06

Train your staff

Ensure front-line teams understand DRS processes, can assist customers with returns, and can handle common issues.

07

Register with Exchange for Change

Producer and retailer registration is expected to open in late 2026. Prepare your data in advance so you're ready on day one.

08

Review cross-border exposure

If you supply across England, Scotland, Wales, and NI, check for differences — especially Wales's glass inclusion and separate DMO.

Deposit Return Scheme reverse vending machine

Get DRS-Ready

Ready to Install Your Deposit Return Scheme Machine?

Endlos supplies UK DRS-compliant reverse vending machines for retailers, supermarkets, hospitality, and public spaces. Talk to our team today.

FAQS

Frequently Asked Questions