The UK’s Deposit Return Scheme (DRS) will change how consumers and businesses handle single-use drinks containers. Launching on 1 October 2027, the scheme will cover eligible plastic bottles and metal drinks containers. It aims to increase recycling rates, reduce waste and prevent drinks litter.

Consumers will pay a small deposit when purchasing an eligible drink. They can then reclaim the refundable deposit by taking the empty container to a designated return point. This provides a financial incentive to recycle and helps keep valuable materials within the circular economy.

At Kite Packaging, we understand that changing packaging regulations can be difficult to keep up with. This guide explains the Deposit Return Scheme, how it will work and what businesses need to know before its introduction.

What Is the Deposit Return Scheme?

The Deposit Return Scheme is a recycling system for certain single use drinks containers. Similar return schemes are already used in other countries to encourage consumers to return bottles and cans rather than throwing them away.

Under the UK’s Deposit Return Scheme, eligible containers will include PET plastic bottles and aluminium or steel cans between 150ml and 3 litres. A small deposit will be added when consumers purchase an eligible drink.

The Deposit Return Scheme DRS is designed to increase collection rates and improve the quality of materials available for recycling. By giving containers a value after use, the scheme should encourage more people to return them and help reduce litter.

How Will the Deposit Return Scheme Work?

Deposit return is designed to make returning an empty bottle or can straightforward. The process will generally work as follows:

1. Buy an eligible drink: A refundable deposit will be added to the price of drinks sold in eligible single use containers.
2. Keep the container: Once the drink is finished, consumers should keep the empty container ready for return.
3. Visit a return point: Containers can be taken to an appropriate return point, which may use a reverse vending machine or another approved collection method.
4. Receive the deposit back: Once the container is accepted, the consumer can reclaim the deposit they originally paid.

Paying and Receiving the Refundable Deposit

The deposit amount will be set by the Deposit Management Organisation. It will apply when an eligible drink is purchased and will be returned when the container is correctly deposited through the scheme.

Returning an Empty Container to a Return Point

Consumers will need to take eligible containers to a participating return point. Depending on the location, this could involve placing PET plastic bottles or metal drinks containers into a reverse vending machine.

Return points will help collect containers separately from other household waste. This should create cleaner recycling streams and allow more high quality materials to be recycled into new products.

Which Drinks Containers Are Included in the Deposit Return Scheme?

The deposit return scheme will apply to single use drinks containers that meet specific material and size requirements. Eligible containers will generally have a capacity between 150ml and 3 litres.

The scheme will cover:

• PET plastic bottles
• aluminium cans
• steel cans

These containers must be designed to contain a drink and meet the requirements of the scheme. This means businesses will need to identify which products fall within its scope before the scheme launches.

Some containers won't be included. For example, containers made from high-density polyethylene (HDPE), such as many milk bottles, fall outside the material scope.

Are Glass Bottles Included?

Glass bottles won't be included within the deposit return schemes for England, Northern Ireland and Scotland. Scotland had previously planned to include glass before changing its approach to align with the schemes elsewhere in the UK.

Businesses should check the latest guidance if they're unsure whether particular drinks containers are eligible.

Who Is Exchange for Change?

Exchange for Change is the organisation responsible for running the deposit return scheme across England, Northern Ireland and Scotland. It was appointed as the Deposit Management Organisation in 2025.

As the scheme administrator, Exchange for Change will oversee key parts of the system. Its responsibilities include working with drinks producers and retailers, managing deposits and supporting the network used to collect eligible containers.

Exchange for Change will also play an important role in meeting collection targets and ensuring returned containers enter suitable recycling streams.

Businesses affected by the new Deposit Return Scheme should follow updates from Exchange for Change as preparations continue. Further details on areas such as the deposit amount, producer requirements and return point arrangements will become important ahead of the October 2027 launch.

What Does the Deposit Return Scheme Mean for Businesses?

The Deposit Return Scheme will introduce new responsibilities for businesses that produce or sell eligible drinks. Requirements will vary depending on a company's role within the scheme.

Preparing early can help businesses understand which containers are affected and what changes may be required before October 2027.

Responsibilities for Drinks Producers

Drinks producers placing eligible containers on the market will need to register with Exchange for Change and meet relevant scheme requirements.

Depending on their activities, responsibilities may include:

• registering eligible drinks containers
• paying a producer fee
• applying the required DRS labelling to packaging
• reporting information about containers placed on the market
• collecting and managing deposits as required

These measures will help Exchange for Change track containers and manage the deposit return system.

Providing a Return Point

Retailers selling eligible drinks may need to provide return points where consumers can return containers and reclaim their deposit. Takeback services could include a reverse vending machine or other approved return arrangements.

Retailers operating return points are expected to receive a handling fee to help cover associated costs. Some businesses may also qualify for exemptions from operating a return point, depending on the final requirements and their circumstances.

How Will Deposit Return Support a Circular Economy?

A key purpose of deposit return is to keep valuable materials in use for longer. Collecting PET plastic bottles, aluminium cans and steel cans separately can produce cleaner waste streams and more high quality recyclate.

This supports a circular economy by allowing materials from old drinks containers to be used again rather than relying as heavily on new raw materials. Recycling aluminium, for example, requires considerably less energy than producing aluminium from raw materials.

Higher collection and recycling rates should also help reduce litter. Fewer discarded bottles and cans could enter public spaces, waterways and habitats where waste can affect marine life.

Increasing recycling can also contribute to reducing greenhouse gas emissions and carbon emissions associated with producing new packaging materials. The Deposit Return Scheme therefore forms part of wider efforts to reduce waste and make better use of resources.

Deposit Return Scheme and Extended Producer Responsibility

The Deposit Return Scheme will operate alongside Extended Producer Responsibility (EPR) as part of wider changes to packaging waste management across the UK.

Both initiatives aim to increase recycling and place greater responsibility on businesses that introduce packaging to the market. However, they cover packaging in different ways.

Once DRS is operational, drinks containers that fall within the deposit return scheme will be treated differently from other packaging under EPR. Businesses should therefore understand which of their containers are eligible for deposit return and which remain subject to wider EPR requirements.

Prepare for the Deposit Return Scheme With Kite Packaging

With the Deposit Return Scheme launching in October 2027, businesses have time to understand the requirements and prepare for the changes ahead.

Kite Packaging can help businesses review their packaging choices while keeping up with changes across the packaging industry. We also provide guidance on areas such as Extended Producer Responsibility and other packaging regulations.

As further details are confirmed by Exchange for Change, businesses should review their responsibilities and make any necessary changes before the scheme launches.

Need support with your packaging? Contact us to speak to our team.

Deposit Return Scheme FAQs

Want to know more about the Deposit Return Scheme and what it could mean for your business? Take a look at our frequently asked questions below or contact us for further details.

When does the Deposit Return Scheme start?

The Deposit Return Scheme is scheduled to launch on 1 October 2027. Businesses affected by the scheme should use the time before its introduction to understand their responsibilities and prepare for any required changes.

How much will the refundable deposit be?

The deposit amount hasn't yet been confirmed. Exchange for Change, the Deposit Management Organisation, will determine the deposit consumers pay when purchasing an eligible drink.

What drinks containers are eligible for deposit return?

Eligible containers will include single use PET plastic bottles, aluminium cans and steel cans between 150ml and 3 litres. Glass bottles and HDPE containers aren't currently included.

Who runs the Deposit Return Scheme?

Exchange for Change is the official operator responsible for administering the scheme across England, Northern Ireland and Scotland. It will work with drinks producers, retailers and other businesses involved in deposit return.

Does the Deposit Return Scheme apply in Northern Ireland?

Yes. The Deposit Return Scheme will operate in Northern Ireland as well as England and Scotland from October 2027. Businesses in Northern Ireland that produce or sell eligible containers may therefore have responsibilities under the scheme.

Do retailers have to provide a return point?

Retailers selling eligible drinks may be required to provide return points for consumers. However, exemptions may apply in certain circumstances. Businesses should check the latest guidance from Exchange for Change to understand their individual requirements.

How could the Deposit Return Scheme reduce drinks litter?

The scheme gives consumers a financial incentive to return an empty container rather than discard it. Increasing the number of bottles and cans collected for recycling could help reduce drinks litter in public spaces while keeping valuable materials in circulation.