The UK Government has announced that from 1st October 2027 consumers in England and Northern Ireland will pay a deposit when purchasing drinks in plastic or metal containers. Consumers will then have a financial incentive to return empty containers to a collection point, such as at their local supermarket, where the deposit will be returned and the container recycled[i].
A deposit management organisation will be appointed in April 2025. They will provide more detailed guidance for businesses and set the deposit amount. From 1st October 2027, producers must:
DRS schemes are already used in more than 50 countries worldwide to boost recycling rates, with the average return rate for European countries currently at 90%, according to NGO Reloop. Market leader Germany has an impressive return rate of 98%[iii].
Highlighting the problem, the UK Government estimates 6.5 billion single-use containers go to waste in England, Scotland and Northern Ireland annually[iv], and research by the Marine Conservation Society showed 97 percent of surveyed UK beaches were polluted with drinks-related items in 2023.
Circular Economy Minister Mary Creagh said: “This Government will clean up Britain and end the throwaway society. This is a vital step as we stop the avalanche of rubbish that is filling up our streets, rivers and oceans and protect our treasured wildlife. Turning trash into cash also delivers on our Plan for Change by kickstarting clean growth, ensuring economic stability, more resilient supply chains, and new green jobs.”[v]
Allison Ogden-Newton OBE, Chief Executive of environmental charity Keep Britain Tidy, has said:
“A Deposit Return Scheme really is a silver bullet that will get plastic drinks bottles and aluminium cans out of our parks, off our streets and away from our rivers and seas. Depressingly we litter, burn or bury millions of drinks containers each and every day. This legislation will end all that, save the taxpayer millions in clean-up costs and give recycling a real shot in the arm.”[vi]
However, some criticism of plans has arisen, with claims of ‘a lack of joined up thinking’, where England and Northern Ireland will impose separate guidelines to Scotland and Wales, the former nations will also see only plastic and metal collected, not glass as is being proposed in Scotland. Wales previously withdrew from plans for an aligned DRS scheme across the UK, and the Scottish Government is set to introduce separate legislation and issue its own guidance.
In addition, the BRC (British Retail Consortium) has written to environment secretary Steve Reed stating that the proposed October 2027 start date is “not feasible” given the threat to food inflation and high infrastructure costs, it added that the decision by the Welsh government to pull out of a joined-up UK launch risked the scheme not being effective[vii].
“We support the delivery of a deposit return scheme, but the government needs to listen to legitimate concerns about implementation rather than just ploughing ahead,” said Andrew Opie, director of food and sustainability at the BRC[viii].
“The current approach risks running into the problems we saw in Scotland, which everyone wants to avoid. It is particularly disappointing the government has not taken us up on our offer last year to sit down with retail experts, understand our concerns and work together towards a feasible implementation date which avoids disappointment for consumers on day one of a DRS.[ix]”
Scotland was previously forced to ditch its plans for a pioneering DRS system in 2023, leading to the collapse of administration body Circularity Scotland. Talks over setting up a scheme administrator, or DMO, in England and Northern Ireland will now take place, with bids for the DMO due to be submitted by 3rd February and approved by April.
[i] Government to clean up communities with deposit return scheme for plastic bottles and cans - GOV.UK
[ii] Ibid
[iii] reloopplatform.org/wp-content/uploads/2022/11/RELOOP_Global_Deposit_Book_11I2022_P1.pdf
[v] Government to clean up communities with deposit return scheme for plastic bottles and cans - GOV.UK
[vi] Ibid
[vii] Supermarket chiefs call for 2027 deposit return scheme start date to be scrapped - Retail Gazette
[viii] MPs accused of ignoring DRS fears as Tories withdraw support | The Grocer
[ix] Ibid
Lauren has extensive experience as an analyst and market researcher in the digital technology and travel sectors. She has a background in researching and forecasting emerging technologies, with a particular passion for the Videogames and eSports industries. She joined the Critical Information Group as Head of Reports and Market Research at GRC World Forums, and leads the content and data research team at the Zero Carbon Academy. “What drew me to the academy is the opportunity to add content and commentary around sustainability across a wealth of industries and sectors.”
