The scheme is designed to reduce litter, improve recycling rates and support a circular economy. It will introduce new responsibilities for drinks producers, retailers and other businesses involved in selling covered products.
How the New Deposit Return System Will Work for Shoppers and Retailers
The deposit will apply to single-use drinks containers made wholly or mainly from aluminium, steel or polyethylene terephthalate (PET) plastic. Containers must have a capacity between 150 millilitres and 3 litres and be intended for use only once or for a short period.
According to the UK Parliament’s House of Commons Library, the deposit amount will be 20p for all containers included in the scheme. Customers will be able to reclaim this payment by returning empty containers to designated return points, including shops or reverse vending machines.
The system will not cover all drink packaging. Containers that are not single use or those made from high-density polyethylene (HDPE), such as many milk bottles, will be excluded. The scheme also does not include containers used for liquid medicines, flavour enhancers or sweeteners added to drinks.
Retailers selling drinks included in the scheme will have several obligations. According to guidance from the Department for Environment, Food & Rural Affairs (Defra), businesses must charge the deposit when selling covered drinks, provide refunds when containers are returned, store collected containers and display information explaining how the scheme operates.
Supermarkets, grocery stores, convenience stores and newsagents will generally need to host return points unless they qualify for an exemption. Return points can be operated manually or through automated machines.
The Environmental Aims and the Wider UK Recycling Framework
The DRS is being introduced as part of wider efforts to manage packaging waste and improve the collection of drink containers. According to the House of Commons Library, UK consumers use around 14 billion plastic drinks bottles and nine billion cans each year.
Research from Keep Britain Tidy found that small plastic bottles and non-alcoholic cans account for 43% of litter by volume. The UK Government expects deposit return schemes to help reduce discarded drink containers and improve recycling performance.
The scheme will operate alongside other packaging rules already in place. Drinks containers covered by the DRS, including PET plastic, aluminium and steel containers, will be excluded from packaging extended producer responsibility charges, while glass drinks bottles remain within that separate system.
England, Northern Ireland and Scotland are expected to operate aligned schemes from October 2027. The House of Commons Library noted that waste and resources policy is devolved, meaning each part of the UK can create its own legislation, though coordination is intended to avoid practical difficulties.
The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025 establish responsibilities for producers, retailers and the scheme administrator. According to Defra, the deposit management organisation will oversee compliance, provide guidance to businesses, arrange collection and recycling of covered materials, and manage the return system.
