Beginning October 1, 2027, consumers will pay a refundable deposit on certain single-use drink containers under the new Deposit Return Scheme (DRS). This scheme imposes new responsibilities on businesses that produce or sell drinks in England and Northern Ireland. Similar measures will be introduced in Scotland under separate legislation and guidance from the Scottish Government.

A Deposit Management Organisation (DMO) will be appointed in April 2025 to provide detailed guidance for businesses and determine the deposit amount.

Drinks Containers Included in the Scheme

The scheme applies to all single-use drinks containers that:

• Are made primarily from aluminum, steel, or polyethylene terephthalate (PET) plastic.

• Have a capacity between 150 milliliters and 3 liters.

• Are intended for single use or short-term use.

Containers with lids made from other materials are still included. The deposit does not apply to:

• Non-single-use containers.

• Containers made from high-density polyethylene (HDPE), such as milk bottles.

• Containers used for liquid medicines or flavor enhancers and sweeteners like syrups or hot sauce.

Supplier Responsibilities

All parties in the drinks supply chain must charge the deposit to their buyers when selling filled drinks containers included in the scheme. This includes producers, importers, wholesalers, and retailers. Businesses must only supply filled containers placed on the market by a registered scheme producer and carrying the scheme labeling. The deposit is not required for unfilled containers.

Producer Responsibilities

You are considered a producer under the scheme if you:

• Manufacture in-scope drinks (typically the brand owner).

• Import drinks into the UK.

• Fill and seal drink containers to order, such as a hospitality venue supplying crowlers.

Producers based in the Republic of Ireland supplying drinks to Northern Ireland must register with the scheme and fulfill the relevant responsibilities.

From October 1, 2027, producers must:

• Register with the Deposit Management Organisation, with fees based on the number of containers placed on the market.

• Apply the deposit to all containers included in the scheme.

• Pay collected deposits to the Deposit Management Organisation when containers are sold to the next business in the supply chain.

• Comply with scheme labeling requirements.

• Report the number of drinks placed on the market.

The DMO will provide detailed guidance on compliance.

Exemption for Low-Volume Products

Low-volume products, defined as product lines with fewer than 5,000 units per year, are exempt from producer fees, deposits, and scheme labeling. However, producers must still register with the DMO and report the number of containers placed on the market.

Retailer Responsibilities

Retailers selling drinks included in the scheme must:

• Pay the deposit to producers or wholesalers when purchasing drinks.

• Charge the deposit to consumers at the point of sale.

Return Points

Supermarkets, grocery stores, convenience stores, and newsagents selling drinks in the scheme must host a return point for drinks containers unless they qualify for an exemption. Return points can be manual or automated using reverse vending machines. Retailers must also:

• Register with the DMO.

• Refund the deposit to consumers at the point of return via voucher, card, or cash.

• Store returned containers for collection.

• Display information explaining the scheme to customers.

Exemptions from Hosting a Return Point

Retailers in urban areas with a retail space of less than 100m² are exempt from hosting a return point but can apply to host one voluntarily. The DMO will provide guidance on exemptions and application processes. Other organizations, such as hospitality venues, food-to-go stores, schools, gyms, sports or community centers, mobile caterers, and businesses with vending machines, can apply to host a voluntary return point.

Businesses not automatically exempt can apply for an exemption if:

• They are close to another return point.

• Hosting a return point is impractical due to location, layout, size, design, or construction of the premises.

Applications for exemptions require evidence and guidance from the DMO.

Takeback Services for Online Customers

Businesses can register with the DMO as a takeback service provider, allowing them to collect empty containers from online customers at the point of delivery to refund the deposit.

Selling Drinks for Consumption on Premises

Businesses selling drinks for immediate consumption on premises, such as cafes, restaurants, and pubs, can choose not to charge the deposit at the point of sale. They should collect and store these containers for the DMO to collect and refund the deposit. Clear information must be displayed indicating that the premises are opt-out and requesting customers to leave empty containers. For drinks sold to take away, businesses may choose to apply the deposit only to those items.

Deposit Management Organisation

The DMO will:

• Set the deposit amount, producer registration fees, and payments to return point hosts.

• Provide detailed guidance to businesses in the drinks supply chain for DRS preparation.

• Inform consumers about the scheme and handle queries.

• Ensure compliance with the scheme’s collection targets.

• Arrange collection and recycling of in-scope materials and make collected material available to producers for purchase.

Enforcement Authorities

The enforcement authorities for the DRS are the Environment Agency and Trading Standards in England, and the Northern Ireland Environment Agency. They ensure compliance with the regulations by obligated suppliers and the DMO

Link https://www.gov.uk/guidance/deposit-return-scheme-drinks-producer-and-retailer-responsibilities