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Deposit return schemes

All parts of the UK are expected to start operating a deposit return scheme (DRS) for drinks containers from 1 October 2027. A DRS adds a refundable deposit to the price of drinks sold in single-use containers, which consumers reclaim by returning the empty container to a designated point. The schemes aim to reduce litter, increase recycling rates and support a circular economy. The deposit rate will be 20p on all in-scope containers.

About deposit return schemes

A DRS charges consumers a deposit when they buy drinks in single-use containers, such as plastic bottles or cans. The deposit is refunded when the container is returned to a shop or a reverse vending machine (a machine that accepts empty containers and returns the deposit). UK consumers use around 14 billion plastic drinks bottles and nine billion cans annually. Research by the charity Keep Britain Tidy found that small plastic bottles and non-alcoholic cans make up 43% of litter by volume (PDF). The UK Government expects DRSs to reduce litter and improve recycling.

Devolution and the UK Internal Market Act

Waste and resources policy is devolved meaning that each part of the UK could legislate separately for its own DRS. However, the United Kingdom Internal Market Act 2020 (UKIMA) generally requires goods lawfully sold in one part of the UK to be accepted in all parts of the UK. Different schemes with different materials in scope could create practical challenges, such as labelling and machine compatibility. UKIMA allows for exclusions, which governments can request to permit divergence.

UK coordination and materials in scope

The Environment Act 2021 gives powers to establish DRSs in England, Wales and Northern Ireland; Scotland’s powers come from the Climate Change (Scotland) Act 2009. All parts of the UK plan to start schemes on 1 October 2027. England, Northern Ireland and Scotland will include single-use drinks containers between 150 millilitres and 3 litres made from polyethylene terephthalate (PET) plastic, steel and aluminium, but not glass. The UK Government decided against including glass (PDF) due to concerns about safety, storage, and recycling quality. Wales will include glass bottles in its scheme but initially without a deposit, to avoid immediate changes to labelling and distribution. Wales also plans to introduce a reuse scheme as part of its DRS, but has not yet made full legislative provision for this.

Operation of the schemes

The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025 sets out roles for retailers, producers and a scheme administrator, the UK Deposit Management Organisation (UK DMO), appointed in May 2025. The DMO will run the scheme in England, Northern Ireland and Scotland, setting deposit levels and overseeing compliance. The DMO’s trading name is Exchange for Change.

For Scotland the regulations are the Deposit and Return Scheme for Scotland Amendment Regulations 2025 and the Deposit and Return Scheme for Scotland (Designation of Scheme Administrator) Order 2025.

In Wales the regulations are the Deposit Scheme for Drinks Containers (Wales) Regulations 2026. The Welsh Government has not yet appointed its DMO.

The environmental regulators in each part of the UK will enforce the scheme (for example the Environment Agency in England).

Costs and benefits

An impact assessment for England and Northern Ireland estimates set-up costs of £632 million and annual running costs of £1.065 billion. Expected annual benefits are £1.612 billion, including reduced litter, greenhouse gas savings and material revenue. Scotland’s assessment (PDF) projects costs of £900 million and benefits of £1.27 billion over ten years.

Stakeholder views

Responses to DRS proposals have been mixed. Local authority groups and waste industry bodies argue that DRSs will add cost and complexity and would prefer greater investment in kerbside recycling. Recycling trade associations question consumer willingness to return containers. Supporters include the Food and Drink Federation, which calls for a UK-wide scheme with consistent rules, and environmental charities such as the Marine Conservation Society, which see DRSs as reducing drinks-related litter. Glass inclusion remains contentious: industry groups cite cost and safety concerns of DRSs, while environmental groups argue it is essential to tackle glass litter.

Interaction with packaging extended producer responsibility

Across the UK a revised packaging extended producer responsibility (pEPR) scheme began in April 2025. Drinks containers covered by DRSs in the UK (steel, aluminium and PET plastic) are excluded from pEPR charges. Glass drinks bottles are within the scope of pEPR.

Previous Scottish plans and legal action

Scotland legislated for a DRS in 2020, including glass, but delays followed due to the pandemic and UK Internal Market Act issues. Circularity Scotland, the original scheme administrator (and a non-profit company funded by the drinks industry), went into administration in 2023. Waste firm Biffa pursued a compensation claim against the Scottish Government over the delays, but the claim was dismissed by the Court of Session. Scotland will now align its scheme with England and Northern Ireland.

International examples

DRSs operate across many EU and EEA (European Economic Area) countries and are mandated across the EU by 2029 under the Packaging and Packaging Waste Regulation.  DRSs also operate in some US states. Most Canadian provinces and territories have DRSs, and all Australian states and territories now operate container deposit schemes.