What is the Deposit Return Scheme (DRS)?
From 1st October 2027, England and Northern Ireland will see a huge shift in recycling efforts for plastic and aluminium drinks containers.
Through the Deposit Return Scheme (DRS) consumers will be made to pay a nominal deposit on eligible drinks, getting it back once the empty container has been returned.
Simple as that.
But, for businesses involved in the beverage supply chain, there will be a number of new responsibilities to adhere to.
What’s changing?
Not much, but also a lot.
From October 2027, consumers will have a choice on how they recycle single-use PET plastic, aluminium and steel drinks containers.
Now, that’s not every container of course. The Deposit Return Scheme (DRS) only applies to containers carrying between 150ml – 3l and not made from HDPE or carry liquid medicine, sweeteners or flavour enhancers.
A small deposit will be placed on each beverage before sale, and if the consumer chooses to use a return point, that deposit will be returned via cash, card or vouchers.
Easy!
Who are the key players?
There’s a few key players when it comes to the Deposit Return Scheme.
Not only is there government bodies to answer to, such as the Deposit Management Organisation, but each stakeholder in the supply chain has their own obligations and responsibilities.
We’ve listed them below, with their roles, responsibilities and obligations.
They are the government body overseeing the whole Deposit Return Scheme. Set to be appointed in April 2025, they will be responsible for setting deposit amounts, providing guidance and managing the scheme.
Suppliers are just that, suppliers. However they’re responsibilities will change under DRS.
If suppliers are selling eligible drinks containers, they must charge deposits to buyers and only supply from registered producers that adhere to scheme labelling.
Suppliers do not need to charge deposits on unfilled containers.
Producers are responsible for manufacturing, importing or filling drinks containers. They play a pretty big role in the Deposit Return Scheme (DRS), and as such have some pretty big requirements.
Producers must:
- Register with the Deposit Management Organisation before 1st October 2027
- Apply deposits to all eligible containers before 1st October 2027
- Pay collected deposits to the Deposit Management Organisation
- Comply with all scheme labelling requirements
- Report container volumes placed on the market to the Deposit Management Organisation
Exemptions:
‘Low-volume products’ are lines that have less than 5,000 units place on the market per year. Whilst there are reporting requirements surrounding these lines, they are exempt from fees, deposit application and labelling guidance.
Even NON-UK producers should still register if they are importing drinks into the UK.
Retailers have responsibilities too:
- Pay deposits to suppliers
- Charge deposits to consumers
- Host return points (manual or automated) for eligible containers
- Pay deposits back to consumers upon return
- Store containers for return
- Display appropriate scheme information
And that doesn’t even cover hospitality venues, food-to-go stores, schools, gyms, mobile caterers and a whole host of other businesses that can apply to become voluntary return points.
That’s a lot, but the Deposit Management Organisation (DMO) is there to offer guidance and assistance along the way.
Exemptions for return points:
Small urban retailers (<100m2), those near other return points, those with logistical challenges for hosting. The DMO will provide specific guidance.
So, what now?
Listen, guidance is still limited.
And it’ll continue to be that way until April, when the Deposit Management Organisation (DMO) is appointed. But, there are steps that you can take now to prepare yourself for success come the October 1st 2027 deadline.
The Deposit Return Scheme (DRS) has been introduced to inspire innovation, improve recycling efforts and move towards a circular economy. Now is the best time to invite collaboration across you’re entire Supply Chain – so come 2027 you’re working on relationships that work to benefit everyone.