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If you follow this website closely, you’ll no doubt be aware of the upcoming deposit return scheme (DRS).

You’ll also know it’s been contentious to say the least, with strong opinions from different parts of the UK and political parties leading to a somewhat fractured approach to the new recycling laws.

Now, in the first clues about the system retailers need to adhere to from 1 October 2027 when the laws change, the government has issued guidance for those who will be affected.

In the retailer section of the advice online, it’s noted that – for England and Northern Ireland – the DRS will apply to single-use plastic drink packaging made wholly or mainly from aluminium or steel, or polyethylene terephthalate (PET) plastic, have a capacity of 150ml up to three litres, and are likely to only be used once. Containers with a lid made from other materials are still included.

Packaging not included in the scheme includes high density polyethylene (HDPE) – the material used to make milk bottles, and containers used for liquid medicines such as cough syrup, or flavour enhancers or sweeteners to add to drinks such as syrups or hot sauce.

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Retailer responsibilities

Retailers in Northern Ireland and England will have new responsibilities come October 2027. Any store selling drinks which are included in the scheme must pay the deposit to producers or wholesalers when purchasing the drinks and charge the deposit to consumers at the point of sale.

Supermarkets, grocery stores, convenience stores and newsagents that sell drinks in the scheme must host a return point for containers, unless they qualify for an exemption. The return point can be manual or automated using a reverse vending machine.

These retailers must also:

  • Register with the deposit management organisation (see below)
  • Pay the deposit back to consumers at the point of return (via voucher, card or cash)
  • Store returned containers for collection
  • Display information so customers know how the scheme works

Retailers in urban areas are exempt from hosting a return point if they have a retail space of less than 100m2, however they can still apply to be a voluntary return point. The deposit management organisation will provide guidance on exemptions and how to apply

If you’re not automatically exempt you can apply for an exemption if your store is close to a collection point or if it’s not possible (or easy) to host a return point due to the location, layout, size, design or construction of the premises

To apply for one of these exemptions you will need to provide evidence to the deposit management organisation. They will provide guidance on the criteria and how to apply.

Takeback services

You can register with the deposit management organisation as a takeback service provider, which means you can recover empty containers from online customers at the point of delivery to refund the deposit.

Cafes and dine-in drinks

If your store sells drinks for immediate consumption on the premises, you can choose not to charge the deposit at the point of sale. You should collect and store these drinks containers. The deposit management organisation will collect them and refund the deposit.

However, you must display clear information that says you are an opt-out premises and asks customers to leave their empty containers. If you sell drinks to take away alongside those for consumption on the premises, you may choose to only apply the deposit to drinks sold to take away.

Deposit management organisation

A deposit management organisation for the scheme is to be appointed in April 2025 and will provide more detailed guidance for businesses and set the deposit amount. The organisation will:

  • Set the deposit amount, the producer registration fees and payments to return point hosts
  • Provide detailed guidance to help businesses in the drinks supply chain prepare for the DRS
  • Inform consumers about the scheme
  • Handle queries
  • Be responsible for meeting the scheme’s collection targets
  • Arrange collection and recycling of in-scope materials
  • Make collected material available to producers for purchase

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The enforcement authorities for the DRS are the Environment Agency and Trading Standards for England, and the Northern Ireland Environment Agency. They are responsible for ensuring obligated suppliers and the deposit management organisation are compliant with the regulations.

The Scottish Government will introduce separate legislation and provide separate guidance, with Welsh plans still being debated.