Deposit Return Scheme (DRS) management organisation, Exchange for Change, has confirmed that a flat 20p deposit will be applied on all in-scope containers when the scheme launches in England, Northern Ireland and Scotland in October 2027.
The 20p deposit will be applied to all single-use drinks in PET plastic, steel and aluminium containers between 150ml and 3 litres at the point of purchase, and will be fully refundable to consumers when the containers are returned.
The announcement follows “extensive consultation” with industry and analysis of existing deposit return schemes across Europe and the rest of the world to consider the most effective way to ensure the deposit provides a sufficient behavioural incentive for consumers to return containers, is proportionate and simple to understand and is workable for producers and retailers.
Exchange for Change’s analysis found that deposit levels below 15p are unlikely to provide sufficient incentive to help achieve target return rates of 90 per cent of containers within three years, while it was found that a 30p level could result in a disproportionate consumer cost exposure at the point of purchase. The analysis also considered the potential of applying a variable deposit value depending on the size of container or material. While variable deposit structures are in place in some countries with a DRS, the analysis found this often results in consistently lower return rates on smaller containers.
It is hoped that announcing the deposit value with just under 18 months to go until the scheme goes live is intended to support producers and retailers in their planning.
Exchange for Change CEO, Russell Davies, said: “The deposit value is a pivotal part of how the deposit return scheme will work in practice. That’s why we’ve engaged widely with industry, undertaken extensive market research and in-depth analysis on how schemes work in other countries. This work has identified that a flat 20p deposit is the most proportionate and sustainable amount for the UK. Confirming this now, with just under 18 months to go until the DRS is live, will help producers and retailers with their planning and preparation for the scheme, and we will continue to support them closely throughout this process.”
Association of Convenience Stores chief executive Ed Woodall said: “We welcome the announcement of the 20p deposit rate for the scheme as a signal that progress is being made at pace on the details of the scheme operation for retailers. There are however still crucial parts of the scheme that we do not have clarity on yet, the most important of which is the rate of the retail handling fee, which will play the biggest role in retailers making a decision about how to be involved with the scheme.
“We remain committed to working with Exchange for Change to explain the details of the scheme to retailers, and to ensure that the scheme can be implemented in a targeted, sustainable way that causes minimal operational and cost burdens for the convenience sector.”
The Fed’s National President Hetal Patel added: “The Fed is pleased that this has now been confirmed. All the evidence from retail engagement in the UK and from other countries already applying DRS around the world indicates it has been set at a sensible level. This will provide customers with a positive nudge to return their bottles and cans so they can be recycled, reducing waste.”
More information on exemptions and handling fees is expected in the coming weeks. Meanwhile, the Welsh government is still searching for a DMO to manage the Deposit Return Scheme in Wales which will also include glass.
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