Deposit Return Scheme: drinks producer and retailer responsibilities
Understand what drinks businesses need to do under the Deposit Return Scheme from 1 October 2027.
Applies to England and Northern Ireland
From 1 October 2027, customers will pay a refundable deposit for certain single-use drink containers under the new Deposit Return Scheme (DRS).
Businesses that produce or sell drinks in England and Northern Ireland will have new responsibilities. Similar responsibilities will apply in Scotland. The Scottlish Government will introduce separate legislation and provide separate guidance.
A deposit management organisation will be appointed in April 2025. They will provide more detailed guidance for businesses and set the deposit amount.
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Drinks containers included in the scheme
The deposit will apply to all single-use drinks containers that:
- are made wholly or mainly from aluminium or steel, or polyethylene terephthalate (PET) plastic
- have a capacity of between 150 millilitres and 3 litres
- are likely to be used only once or for a short period of time
Containers with a lid made from other materials are still included.
The deposit will not apply to containers if they are:
- not single use
- made from high-density polyethylene (HDPE) – this is the material used to make milk bottles, for example
The scheme does not include containers used for liquid medicines (such as cough syrup) or flavour enhancers or sweeteners to add to drinks (such as syrups or hot sauce).
Supplier responsibilities
Everyone in the drinks supply chain must charge the deposit to their buyers when they sell filled drinks containers included in the scheme. This includes drink producers, importers, wholesalers and retailers.
Businesses must only supply filled drinks containers that have been placed on the market by a registered scheme producer and carry the scheme labelling.
The deposit does not need to be charged when supplying unfilled containers.
Producers and retailers also have additional responsibilities.
Producer responsibilities
Under the scheme you have producer responsibilities if you:
- are a manufacturer of in-scope drinks (typically the brand owner)
- import drinks to the UK
- fill and seal drink containers to order, for example a hospitality venue supplying crowlers
Producers who are based in the Republic of Ireland and supply drinks to the Northern Ireland market should register with the scheme as a producer and meet the relevant responsibilities.
From 1 October 2027, producers must:
- be registered with the deposit management organisation – your producer fee will be based on the number of containers you place on the market
- apply the deposit to all containers included in the scheme
- pay the deposits collected to the deposit management organisation when containers are sold to the next business in the supply chain
- comply with scheme labelling requirements
- report the number of drinks placed on the market
The deposit management organisation will provide detailed guidance on how to comply.
Exemption for low-volume products
‘Low-volume products’ are those with product lines with less than 5,000 units per year.
If you produce or import low-volume products you will not need to pay producer fees, apply deposits or carry scheme labelling for those product lines.
You will still need to register with the deposit management organisation and report the number of containers you place on the market.
Retailer responsibilities
All retailers selling drinks included in the scheme must:
- pay the deposit to producers or wholesalers when purchasing the drinks
- charge the deposit to consumers at the point of sale
Return points
Supermarkets, grocery stores, convenience stores and newsagents that sell drinks in the scheme must host a return point for drinks 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
- 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
Exemptions from hosting a return point
Retailers in urban areas are exempt from hosting a return point if they have a retail space of less than 100m2. They can still apply to be a voluntary return point. The deposit management organisation will provide guidance on exemptions and how to apply.
Other types of organisations that sell drinks can apply to host a voluntary return point. Examples include:
- hospitality venues
- food-to-go stores
- schools, gyms, sports or community centres
- mobile caterers
- businesses with vending machines
If you are not automatically exempt you can apply for an exemption if either:
- your business is close to another return point
- it is 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 for online customers
You can register with the deposit management organisation as a takeback service provider. This means you can recover empty containers from online customers at the point of delivery to refund the deposit.
Selling drinks for consumption on premises
If you sell drinks for immediate consumption on the premises you can choose not to charge the deposit at the point of sale. For example, in cafes, restaurants and pubs.
You should collect and store these drinks containers. The deposit management organisation will collect them and refund the deposit.
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
The deposit management 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
Find out more about the role of the deposit management organisation.
Enforcement authorities
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.