Please visit DEFRA website for all the details.

Deposit Return Scheme

The UK government is finalizing legislation for a Deposit Return Scheme (DRS) to improve recycling rates and reduce litter. The scheme will apply to all four administrations of the UK.

The government is seeking applications from organizations to become Deposit Management Organizations (DMOs) and run the scheme. DMO candidates must demonstrate broad industry support and submit an operational and financial plan.

The legislation for England and Northern Ireland is undergoing final checks and will be laid later this year, subject to parliamentary scheduling. The government will publish the regulations and related documents when they are laid.

Deposit Management Organisations

The DMO will not be formally assessed on litter targets, as this is outside of their direct control. However, the government will set the DMO a target to achieve a 90% collection rate for single-use containers by year 3 of the scheme.

The government is confident that this will significantly reduce the prevalence of single-use containers as litter. International schemes have shown that DRS can effectively reduce littering of drinks containers.

The DMO will communicate the requirements for RVMs and operational details to retailers once it is in place. There will be approximately 30 months from DMO appointment to go-live, allowing sufficient time for retailers to put collection infrastructure in place.

Reverse Vending Machines

Whether a retailer requires an RVM is a decision for the retailer. Smaller businesses may choose to operate a manual collection point. Retailers will be compensated for their efforts by the DMO through a per-container retailer handling payment.

DRS materials such as polyethylene terephthalate (PET), aluminium and steel are not subject to Extended Producer Responsibility (EPR) charges from 2025 – 2027 in England and Northern Ireland. DRS producer fees will start from October 2027, once the scheme is live.

Establishing a DRS will require investment, much of which will fall to industry. These costs may also be met indirectly through producer fees at a later date, which could be used to make payments on debt accrued during 2025-27 as well as fund the ongoing costs of the scheme.

The draft England/Northern Ireland DRS regulations include mechanisms for the DMO to work with local authorities to recover the containers from them and pay them accordingly. DRS producers will not be charged a fee in 2025 and 2026 for the materials that they are putting into the market. Fees will be charged on a per container basis and will begin once the DRS scheme goes live. 

The UK government has been working closely with businesses and the Scottish Government to learn from the Scottish DRS experience. They welcome further input from Scottish producers and manufacturers to ensure that the UK-wide scheme avoids any previous concerns.

Additionally, Defra has worked closely with other international schemes to learn lessons to support the design and roll-out of the DRS across the UK. This includes visits and teach-ins with schemes in Germany, Sweden, Slovakia, and the Republic of Ireland.