Finally, a reason not to abandon that empty can on your desk: it’s worth money.
If you have heard about (and perhaps, like us, been impressed by) the German Pfand system, you’d be delighted to hear that the UK is set to launch its deposit return scheme in 2027!
In this article, we cover everything you need to know about the deposit return scheme, particularly in the UK, including:
- What is a deposit return scheme?
- How does a deposit return scheme work?
- Key benefits of deposit return schemes
- Potential challenges of deposit return schemes
- What does the deposit return scheme mean for producers?
- How businesses can prepare for the UK’s DRS
- Case study: Ireland’s deposit return scheme operated by Re-turn
What Is a Deposit Return Scheme?
In the simplest terms, A deposit return scheme, or DRS in short, is a recycling system where consumers pay a small deposit when they buy a drink and get that money back when they return the empty container.
DRS are often government-backed, adding a refundable deposit to certain recyclable materials. This typically includes metal drink containers, plastic bottle waste, and cans. The scheme is designed to reduce litter, increase recycling rates, and create a cleaner, more circular economy.
Deposit return schemes have proved to be incredibly successful internationally. For example, schemes in Germany and Norway have seen high return rates for single-use drinks containers, directly supporting environmental goals.
The UK is the latest to announce a deposit return scheme, which will launch in October 2027. The UK Government’s goals for DRS include:
- Reducing litter in public spaces
- Increasing recycling rates
- Lowering greenhouse gas emissions
- Improving the quality of recycled materials
- Supporting a circular economy
- Investing in green jobs tied to recycling
Although the final details are still to be announced, we do know that England, Scotland, and Wales will use a flat rate of 20p for all applicable empty containers. This incentive should hopefully encourage people to return containers rather than throw them away.
How Does a Deposit Return Scheme Work?
The setup of the scheme is designed to be straightforward to encourage consumer behaviour. Below is a general overview of how the process will work for consumers:
- You buy a drink and pay an extra 20p deposit
- You consume the drink and retain the container
- You return the empty container to a collection point
- You get your 20p back
Collection points are typically located in supermarkets, for example, Aldi and Lidl in Germany, convenience stores, reverse vending machines, and other designated return locations. The goal is to make returning containers quick and convenient, removing friction from the process and encouraging more people to recycle consistently.
What Drink Containers Are Included in the UK’s DRS?
While final details continue to evolve, the UK scheme is expected to include:
- Plastic drinks bottles (PET)
- Aluminium and steel cans
Glass bottles may be excluded from parts of the UK rollout, depending on how each nation implements the scheme. Exchange For Change, the appointed Deposit Management Organisation (DMO) for England, Scotland, and Northern Ireland, has confirmed that glass will not be included within its system. However, the approach in Wales may differ, with further clarity expected once its DMO is announced.
Where Are Collection and Return Points?
Retailers who sell drinks will play a big role in making this scheme work in practice. They are likely to act as primary return points where consumers can bring back empty containers and receive their deposit refund.
Depending on store size, location, and scheme rules, retailers may need to:
- Install or host reverse vending machines
- Accept manual returns
- Process customer refunds
- Store returned containers safely
- Arrange collection and onward recycling
This creates practical considerations around space, staffing, hygiene, customer flow, and waste handling. For larger retailers, automated return systems may be the most efficient option. Smaller shops may need more flexible arrangements, depending on final scheme requirements.
A smooth return experience will be important for a successful scheme. If returning the containers is quick and convenient, consumers are more likely to participate consistently.
Why Is the 20P Deposit So Important?
The 20p deposit is one of the most important parts of the UK deposit return scheme because it gives consumers a clear financial reason to return their bottles and cans. By including a small refundable deposit for applicable containers, the scheme aims to incentivise recycling at the consumer level.
A flat 20p deposit helps to:
- Keep the system easy to understand
- Avoid confusion between different container types
- Encourage higher return rates
- Make every eligible container feel worth returning
For consumers, 20p is small enough to be manageable at purchase but meaningful enough to encourage action. For families, regular shoppers, or workplaces buying multiple drinks, the deposits can quickly add up, making empty bottle and can returns more worthwhile.
For producers and retailers, the flat rate also creates a simpler system to communicate, manage, and administer.
Benefits of Deposit Return Schemes
A well-designed scheme of this nature can deliver benefits for consumers, businesses, society, and the environment. This has already been felt in countries like Norway and Germany, where these successful international schemes achieve return rates above 90%, with the UK looking to emulate that success. Key benefits of a deposit return scheme include:
1. Environmental Benefits
Deposit return schemes are designed to reduce litter and increase the number of drinks containers that are collected for recycling. By keeping bottles and cans in a cleaner, separate collection stream, the scheme can also improve the quality of recycled materials. This supports a more circular economy, where valuable materials are reused rather than wasted.
2. Consumer Benefits
For consumers, these schemes create a simple incentive to recycle. Instead of recycling being purely voluntary, the deposit gives people a direct financial reason to return containers. It also makes recycling more visible and accessible, especially in public places or when people are away from home.
3. Business Benefits
For producers, the scheme can support sustainability goals and improve packaging accountability. While it obviously introduces new responsibilities, it also allows businesses to demonstrate environmental leadership and prepare for a more circular packaging system.
Potential Challenges of Deposit Return Schemes
While the benefits are strong enough to justify the effort, the UK deposit return scheme might also create a few hurdles for businesses.
Producers may need to manage new reporting requirements, packaging updates, and scheme fees. Retailers may need to adapt store layouts, install return infrastructure, and train staff. Consumers will also need time to adjust to the new habit of returning containers.
Common challenges associated with these schemes include:
- Increased costs for producers
- Operational complexity for retailers
- Packaging and labelling changes
- Consumer education
- Return point accessibility
- Managing container collection and storage
For the scheme to succeed, it must be easy for consumers to use and practical for businesses to implement.
What Does the Deposit Return Scheme Mean for Producers?
For drinks producers, importers, and brand owners, a scheme like this is much more than a consumer recycling initiative. It introduces new responsibilities around compliance, packaging, reporting, handling fees, and cost management.
Businesses placing eligible drinks containers on the UK market will need to understand whether their products fall within the scope of the scheme and prepare accordingly. Key areas producers may need to consider include:
Registration and Reporting
Drinks producers will need to register with the scheme administrator and report the number of eligible containers they place on the market. This data will help calculate fees, track performance, and ensure the system operates fairly.
Labelling and Barcodes
In-scope beverage containers may need scheme-specific labelling, markings, or barcodes so they can be recognised by return systems. This could require packaging redesigns, artwork updates, and coordination with suppliers.
Producer Fees and Financial Responsibility
The scheme will be funded through drinks producer registration fees, unredeemed deposits, and revenue from the sale of collected materials. For producers, this means budgeting for scheme-related costs, including registration, reporting, deposit flows, and fees that may help cover collection, handling, recycling infrastructure, and administration.
Packaging and Supply Chain Changes
The scheme could also affect packaging choices. Producers may need to review container formats, materials, recyclability, and compatibility with return systems. Early preparation will help reduce disruption once the scheme goes live.
It’s worth noting that understanding the legislation and how it affects them is only part of the preparation. The biggest challenges will come from the practical, operational changes across packaging, finance, logistics, and compliance teams.
How Businesses Can Prepare for the UK Deposit Return Scheme
For producers, importers, and retailers, early preparation will make adapting to the deposit return scheme much easier. Businesses that start planning now will be in a stronger position when the scheme goes live.
Some key steps that businesses should prepare for include:
- Audit your packaging: Identify which products and container types are likely to fall within the scheme.
- Review labelling and barcodes: Check whether packaging artwork or product codes may need updating.
- Understand reporting requirements: Prepare systems for tracking container volumes and scheme data.
- Assess financial impact: Budget for producer fees, operational costs, and packaging changes.
- Engage suppliers early: Make sure packaging, logistics, and retail partners understand the upcoming requirements.
- Plan consumer communication: Prepare clear messaging so customers understand how deposits and returns work.
The UK deposit return scheme will affect different parts of a business, from compliance and finance to packaging, marketing, and operations. Treating it as a cross-functional project now will make implementation much easier later.
And this is exactly where DRS International comes in, with our 100+ years of collective experience and a secure and reliable software platform purpose built for DRS.
Case Study: Ireland’s Deposit Return Scheme Operated by Re-turn
While the UK scheme is still in development, other markets have already shown what successful implementation can look like. Ireland’s Deposit Return Scheme, operated by Re-turn, is one example of how careful planning, expert support, and ongoing improvement can help a national system launch effectively.
Ciaran Foley, CEO at Re-turn, has described the early rollout of Ireland’s scheme as a fast-moving process with significant public scrutiny and a small, inexperienced team. During that period, he said working with expert consultants from DRS International was “invaluable,” providing “guidance, advice, know-how and qualified resources.”
He also highlighted the importance of convenience, innovation, and constant improvement in encouraging nationwide behaviour change.
For producers, retailers, and organisations preparing for the rollout of this scheme in the UK, this is an important lesson: successful implementation is not just about compliance. It also depends on operational readiness, stakeholder management, and the ability to adapt quickly.
As Foley put it, having a team that has “been through the challenges many times can be the difference between success and failure.”
Need Support Preparing for the UK Deposit Return Scheme?
With a 20p deposit now confirmed, the way forward is clear. The UK Deposit Return Scheme is set to transform how drinks containers are managed. For producers, retailers, and importers, preparation is the only real path to a smooth transition.
DRS International helps businesses overcome the complexity of deposit return schemes, from compliance and labelling to operational setup and ongoing management. Whether you’re at an early planning stage or preparing for implementation, our expert guidance can make the transition smoother.
Speak to DRS International today to get ready for the upcoming deposit return scheme with confidence.