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. In April 2026, Exchange for Change confirmed that the deposit will be a flat 20p on all in-scope containers, regardless of size. 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?
- Buy a drink
- Pay a small deposit on top of the price
- Return the empty container
- Receive the deposit back
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.
This exemption framework is now clearer. Urban retailers with a retail footprint below 100 square metres are automatically exempt from hosting a return point, with no application needed. Urban shops between 100 and 199 square metres, as well as rural retailers under 200 square metres, can apply for exemptions if they can demonstrate constraints such as lack of space or health and safety concerns. Any exemption approval depends on maintaining sufficient return-point coverage in the surrounding area and requires sign-off from Exchange for Change.
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.
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 (or 6,250 for the first year of the scheme’s operation) 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.
Producer registration with Exchange for Change is expected to open in Q3 2026. All in-scope containers will need to be added to an Article List, and producers must register existing products at least 12 weeks before the scheme goes live on 1 October 2027 – giving a practical deadline of around 9 July 2027.
Exchange for Change also published an updated material specification in April 2026 that producers should be aware of. Existing product barcodes will not be accepted by reverse vending machines – new GS1-compliant barcodes or QR codes are required, with specific rules on contrast, sizing and placement. For PET bottles, Exchange for Change recommends that label and sleeve coverage stays below 50% of the container’s surface area to improve recycled material quality. The DRS deposit logo, which must appear on all in-scope products, has not yet been finalised – logo specifications are expected in Q2 2026, with product testing guidelines for standard container shapes due by September 2026.
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.
Reverse Vending Machines: Planning and Financial Support
If your business does need to install a reverse vending machine, the process has been simplified. New Class CA permitted development rights came into force on 9 April 2026, meaning RVMs can now be installed within or immediately outside a shop without a full planning application. The rules set a maximum footprint of 80 square metres and a maximum height of 4 metres, while wall-mounted machines must not protrude more than 2 metres. Canopies or enclosures required for the machine’s operation are also covered under these rights.
For smaller independent retailers that are required to host a return point, Exchange for Change has announced financial support in the form of a £6,000 grant per location, paid over three years in annual instalments of £2,000. This is aimed at shops where an RVM is considered the most suitable option based on expected container return volumes. Further details on the Retail Handling Fee – the amount retailers receive per container returned – are expected to be confirmed in summer 2026.
Wales: Glass Inclusion and What It Means
On 12 February 2026, the UK Government confirmed a UK Internal Market Act (UKIMA) exclusion for Wales, allowing the Welsh Government to include glass bottles in its Deposit Return Scheme. The Deposit Scheme for Drinks Containers (Wales) Regulations 2026 were laid in the Senedd the same day.
This means that while England, Northern Ireland and Scotland cover only PET plastic, steel and aluminium containers, Wales will also include single-use glass drinks containers. However, glass comes with a four-year transition period running from 1 October 2027 to 30 September 2031, in which glass containers will carry a zero-pence deposit and will have no labelling requirements or targets, giving producers and retailers time to adapt in this period. The UKIMA exclusion includes conditions designed to keep the broader UK schemes aligned, including a requirement for Wales to launch its DRS for plastic and metal containers on the same 1 October 2027 date as the rest of the UK.
For businesses operating across the England-Wales border, this divergence has practical implications: glass containers sold in Wales will carry a deposit and need to be accepted at Welsh return points, while the same containers sold in England will not. If your supply chain or retail footprint crosses into Wales, it’s worth reviewing how this affects your operations.
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.
Key Dates and Upcoming Milestones
- Q2 2026 – DRS deposit logo specifications expected from Exchange for Change
- Q3 2026 – Producer registration opens with Exchange for Change
- Summer 2026 – Final Retail Handling Fee and Return Handling Fee to be confirmed
- September 2026 – Product testing guidelines for standard container shapes published
- 9 July 2027 – Practical deadline for producer registration (12 weeks before launch)
- 1 October 2027 – DRS goes live across England, Scotland, Wales and Northern Ireland
- 1 October 2031 – End of the four-year transition period for glass containers in Wales
What DRS Means for Your Commercial Waste
One effect of DRS that many businesses haven’t considered yet is its impact on commercial waste and recycling collections. Once the scheme is live, PET bottles and aluminium and steel cans will increasingly be returned via DRS return points rather than ending up in your mixed recycling bin. That’s good news for recycling rates, but it also means the material value of what’s left in your mixed recycling stream will drop.
For waste collectors and recyclers, that reduced material value may lead to changes in how mixed recycling collections are priced. Businesses that currently benefit from competitive recycling rates could see those costs shift as the composition of collected materials changes. It’s worth reviewing your current waste arrangements ahead of the launch to understand how DRS might affect your recycling contract.
At Countrystyle, we’re already helping businesses across Kent and the South East prepare for these changes. Whether you need to rethink your waste setup, understand the new rules, or simply want a second opinion on how DRS will affect your collections, we’re here to help.
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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