Deposit Return Scheme (DRS): What UK Businesses Need to Know
From 1 October 2027, the UK’s Deposit Return Scheme (DRS) is set to change how certain single-use drinks containers are sold, returned and managed. For many businesses, it’ll mean a few practical tweaks – from how drinks are priced at the till, to what happens to empty bottles and cans afterwards.
As the scheme is developed and rolled out, it will operate under the public-facing name “Exchange for Change” – a branded identity confirmed in early 2026. This name and its accompanying logo will appear on all eligible drinks containers and return points, helping consumers and businesses alike identify which products fall within the scheme and are eligible for a refundable deposit.
In this blog, we’ll outline what DRS actually is, how it’s expected to work, who it could impact, and the steps you can take to be ready well ahead of launch.
What is the Deposit Return Scheme (DRS)?
The Deposit Return Scheme (DRS) is a system where a small, refundable deposit is added to the price of certain single-use drinks containers at the point of sale. When the empty container is returned to an approved collection point, that deposit is paid back to the customer.
The aim of the Deposit Return Scheme in the UK is straightforward: to increase recycling rates, reduce litter, and capture cleaner, higher-quality materials that can be recycled back into new products. It’s worth noting that DRS won’t apply to every drinks container on the market (e.g HDPE milk bottles, liquid medicines, and flavour enhancers or sweeteners) – only those that fall within the scheme’s defined size and material criteria.
How Does DRS Work?
In simple terms, the Deposit Return Scheme follows a set journey:
- Buy a drink
- Pay a small deposit on top of the price
- Return the empty container
- Receive the deposit back
Returns are expected to happen either by taking containers back to a participating retailer, or by using a reverse vending machine (where available). The idea is to make bottles and cans far more likely to be returned for recycling, rather than binned or littered.
While final details can vary by nation, the UK Deposit Return Scheme is expected to cover drinks containers in the 150ml to 3L range, made from PET plastic, steel and aluminium.
How DRS Could Affect Your Business
If your business sells, serves, handles or collects drinks containers, DRS is likely to have some impact.
Retailers, Supermarkets and Convenience Stores
For retailers, supermarkets and convenience stores, the Deposit Return Scheme could mean acting as a return point, depending on size and location. That may involve allocating space for returns, installing or hosting a reverse vending machine, and putting clear signage and staff processes in place. Under the current policy direction, supermarkets and convenience stores are expected to act as return points from day one, with some exemptions – for example, smaller urban stores (100m² or less) may not be required to operate a return point.
It’s also worth knowing there are practical limits built in, such as not having to accept containers that are broken, soiled or not empty, and exemptions may be available where a return point would create health and safety issues or where another return point is very close by.
Hospitality Businesses
For hospitality businesses – such as cafés, pubs, restaurants and hotels – the key consideration of DRS is whether drinks are consumed on-site or taken away. You may need to review how empty containers are handled and stored behind the scenes.
It’s also suggested that hospitality settings won’t be required to host a return point, but can choose to apply to become a voluntary return point if it suits the site. In practice, that means some venues may simply see fewer bottles and cans left behind, while others might opt in where it supports customer convenience or footfall.
Other Venues
Offices, transport hubs, leisure sites and other venues could see changes in waste volumes and customer behaviour after the Deposit Return Scheme takes effect in the UK, particularly if more containers are returned rather than placed in general recycling. The scheme design also allows places like gyms, sports centres and community sites to apply to act as voluntary return points, which may be relevant for larger premises with high footfall.
Producers, Importers and Suppliers
For producers, importers and suppliers, separate registration and reporting requirements may apply if you place drinks on the UK market. There is also a low volume sales exemption worth knowing about. The current policy position allows product lines with fewer than 5,000 units placed on the UK market per year to be registered as a ‘Low Volume Product’. These lines may be exempt from certain DRS requirements – such as applying deposits, paying fees and carrying DRS labelling – although producers would still need to register and report volumes. It’s designed for specialist, low-volume products where full DRS requirements could be disproportionate.
The details above are based on the UK Government’s Joint Policy Statement on the Deposit Return Scheme. As the scheme develops ahead of 2027, some points may be refined – so it’s worth reading the full statement and keeping up to date.
Top Tip: If you operate across more than one of England, Scotland, Wales or Northern Ireland, make sure to review each site individually – scheme details and responsibilities may not be identical everywhere.
When is DRS Coming to the UK?
The UK’s Deposit Return Scheme is currently planned to come into force in October 2027.
England, Northern Ireland and Scotland are aligned on launch date and core scheme design. Wales has laid regulations for its own DRS, with a different scope from the rest of the UK, which means businesses operating across borders will need to keep an eye on any differences in scope or requirements.
While the overall DRS structure is similar, nation-by-nation details are not expected to be completely identical. One key example is the treatment of glass, which is not included in every UK nation’s scheme design.
How to Prepare Your Business for the Deposit Return Scheme
Although October 2027 may seem some way off, putting a plan in place early will make any changes far easier to manage.
Start by reviewing the drinks you sell or handle and checking whether they’re likely to fall within DRS categories. From there, think practically about operations – where would returned containers be stored, and do you have enough front-of-house or back-of-house space to manage them safely and hygienically?
You should also consider customer signage, clear pricing at the till, and basic staff training so teams can confidently answer questions about deposits and returns. If you operate across multiple sites, plan by location to reflect any nation-specific differences.
Did You Know? In countries where DRS is already established, return rates for eligible containers regularly exceed 85-90% – meaning far fewer bottles and cans end up in general waste or litter.
Getting Ready Early Can Save Hassle Later
The Deposit Return Scheme doesn’t need to be disruptive – but leaving preparations until the last minute could make it feel that way.
Taking time now to review your current waste arrangements will put you in a stronger position ahead of 2027. We can help you understand the rules of DRS and what to do next, so get in touch today or request a quote to check your current setup!
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