Deposit return scheme

The deposit return scheme will be a new cash incentive system that will place a deposit on drink containers made from PET (Polyethylene Terephthalate), aluminium or steel that are 150ml – 3 litres in size in order to boost consumer recycling.

In order to achieve this, dedicated return machines at designated locations will be developed, allowing people to return their bottles and receive their deposit cash back.

In most cases, the outlet that sold the drink is covered by the scheme and would therefore be responsible for hosting a return machine point.

This new legislation will be introduced in England, Northern Ireland and Scotland and aims to address issues with rubbish building up on streets, in rivers and oceans, encouraging consumers to recycle.

Hospitality venues will no longer be required to act as a return point, but venues can voluntarily host a return point.

You can find more specific information regarding the DRS further down this page.

Every year across England, Northern Ireland and Scotland, consumers go through an average of 30 billion single-use drink containers, including 12 billion plastic drinks bottles and 13 billion drinks cans. From this, around 6.5 billion single-use drinks bottles and cans end up getting littered or condemned to landfills.

International examples show that a deposit return scheme can become a simple part of daily life to make recycling easier, with recycling rates now above 90% in Germany, Finland and Norway.

Current recycling rates for drinks containers in the UK sit at around 70%.

The Deposit Return Scheme is due to go live in October 2027 in England, Northern Ireland and Scotland.

The UK Deposit Management Organisation (UK DMO) has been appointed as a scheme administrator and will be responsible for designing and operating the systems that will make the scheme work in England, Northern Ireland and Scotland.

The Welsh Government has decided not to join the UK-wide return scheme and has plans to run its own separately.

The UK DMO will be responsible for:

• Setting the deposit amount, the producer registration fees and payments to return point hosts
• Providing detailed guidance to help businesses in the drinks supply chain prepare for the DRS
• Informing consumers about the scheme
• Handling queries
• Meeting the scheme’s collection targets outlined in the legislation
• Arranging collection and recycling of in-scope materials
• Making collected material available to producers for purchase

To find out more about the role of the Deposit Management Organisation, click here.

What’s different about the Welsh Deposit Return Scheme?

Wales is in the process of introducing its own Deposit Return Scheme (DRS), to launch at the same time as the rest of the UK, on the 1^st of October 2027. Approval still needs to be granted by World Trade Organisation (WTO) with Wales currently seeking to appoint its own Deposit Management Organisation (DMO).

Like the scheme in England, Scotland and Northern Ireland, the Welsh DRS will operate as a cash incentive system, placing a small refundable deposit on drink containers made from PET (Polyethylene Terephthalate), aluminium or steel that are 150ml – 3 litres in size to boost consumer recycling.

However, the Welsh scheme has a couple of key differences. Unlike the scheme in England, Scotland and Northern Ireland, Wales’ DRS will include:

• Glass containers
• Single-use and reusable packaging

This inclusion will be introduced in phases, ensuring a smooth transition that avoids disruption to supply chains and minimising potential fraud risks.

To ensure the Welsh DRS delivers maximum benefit with minimal risk, Wales will first conduct a reuse trial before rolling out full reuse nationwide.

During this phase, single-use glass will be subject to a transitional ‘grace period’ starting on the 1^st of October 2027. While live, consumers will not receive a refundable deposit when returning glass. This will avoid the need for immediate changes to labelling, production or distribution systems, ensuring a smooth and effective transition and a scheme that will still deliver environmental benefits to Wales.

Wales already boasts one of the highest household recycling rates in the world, ranking third globally at 87.3%. Building on this success, the Welsh Government has set an ambitious target for Wales to become a zero-waste nation by 2050.

To learn more about the Welsh Deposit Scheme, please click here.

Read about Wales’s Circular Economy Strategy, Beyond Recycling  click here.