Confirmation gives producers and retailers 18 months to plan labelling, pricing and returns logistics before the UK Deposit Return Scheme launches in October 2027.
Exchange for Change, the industry-led body delivering the UK Deposit Return Scheme across England, Scotland and Northern Ireland, has confirmed a flat 20p deposit on all in-scope drinks containers when the scheme launches in October 2027.
Single-use PET plastic, steel and aluminium drinks containers between 150ml and 3 litres will carry the charge at the point of purchase, refundable in full when consumers return empty containers to approved return points.
The announcement gives producers and retailers just under 18 months to build the deposit into labelling, pricing and point-of-sale systems before launch.
Exchange for Change said behavioural market research had tested consumer response to deposit levels between 10p and 30p. Levels below 15p were unlikely to provide sufficient incentive to hit the scheme's Year 3 target of a 90 per cent return rate, the organisation found, while a 30p level risked disproportionate consumer cost exposure at the till.
The analysis also considered variable deposits weighted by container size or material, a structure used in some other European schemes. Variable systems often produce consistently lower return rates on smaller containers, the organisation said, and Exchange for Change has opted for a single flat rate across the three nations.
Russell Davies, chief executive of Exchange for Change, said the research had "identified that a flat 20p deposit is the most proportionate and sustainable amount for the UK" and that confirming the figure now would help producers and retailers with planning and preparation for launch.
The scheme will run under separate legislation in Scotland from the system covering England and Northern Ireland but will be operated by the same organisation. Exchange for Change is the trading name of UK DMO, the body designated to deliver the scheme across the three nations.
Wales is pursuing a separate DRS on a parallel October 2027 timeline, with a wider scope that includes glass drinks containers. Exchange for Change has applied to operate the Welsh scheme as well.
Several design questions remain open, including handling fees for retailers, reimbursement timescales and the treatment of cross-border returns between the Welsh system and the England, Scotland and Northern Ireland scheme. Industry bodies have flagged these as among the core unresolved issues the scheme operator must still resolve.
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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.