Defra, Welsh Government, and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland have published the long-awaited government response on introducing a Deposit Return Scheme.

You can access the document here

Key announcements

  • Introduction of a DRS in England, Wales and NI is confirmed, expected start date for the scheme is 1 October 2025 – “This is a stretching target date”
  • All three governments are committed to working together to deliver a DRS and find solutions so that effective, workable DRSs can be established across the nations.
  • Cost of living impact: Governments are ware of rising cost of living but anticipated that minimal costs will be passed on by the producers of drinks containers to consumers.
  • A 90% collection target in regulations to be achieved within 3 years of the operation of the scheme.
  • Glass is IN for Wales but OUT for England and NI
  • Size of containers in scope: 50ml – 3l across England, Wales and NI
  • Labelling: intend to mandate the use of both a mark to identify the product as part of a DRS and the use of an identification marker such as a barcode or QR code to enable the container to be recognised at the return point (specific details and design of these markings will be decided by deposit management organisation (DMO)
  • DRS governance: an industry-led scheme, the DMO will be appointed via an application process, which will start in the coming months, once DRS Regs are published.
  • Retailers obligations: retailers selling in scope containers will be obligated to host a return point, with exemption applications made to the DMO.
  • Online purchases of in-scope drinks containers: retailers to ensure a takeback service is offered in respect of online purchases, particularly by large online grocery retailers, from day 1.
  • Retail Handling Fee: the following criteria would be taken into account
    • costs of purchase, lease, maintenance or upkeep of any collection/storage infrastructure, including any vehicle used for collections
    • costs of materials for collection/storage of containers
    • space requirements of return point
    • staffing
    • utility costs of operating the return point (for example electricity)
  • Exemptions from hosting a return point: legislation will require any retailer exempted from hosting a return point, regardless of the reason for the exemption, to display signage indicating the exemption, information on how to contact the DMO and where the nearest return point can be found.
  • Planning permission for hosting a reverse vending machine: permitted development rights will be brought forward in each nation, including nation-specific conditions and limitations to manage local impacts and protect local amenity.
  • VAT and DRS deposits: issue unresolved at this stage
  • Digital DRS: not considered at this point as too much uncertainty remains.

Governments intend to manage the implementation of the DRS in phases. The next step will be to work through development of the legislation.

  • Phase 1: government activity up to DMO appointment
  • Phase 2: DMO set up
  • Phase 3: DRS rollout

Governments are aiming for the DRS regulations to be in force by end of 2023 and the DMO appointed by summer 2024.

BRC Comment on DRS consultation response:

Andrew Opie, Director of Food & Sustainability at the British Retail Consortium, said:

“The retail industry is committed to increasing rates of recycling throughout the UK. Whilst we believe an effectively designed deposit return scheme (DRS) could help to deliver this, in the current economic environment we believe they would be best met through including drinks containers in a well-implemented, effective Extended Producer Responsibility (EPR) Scheme.“Retailers’ experience of establishing a Scottish DRS shows that implementation is immensely more expensive and complex than anticipated, which would make a 2025 launch incredibly challenging. We question whether this approach is truly sustainable, as the significant investment required by the scheme would create immediate and large costs for retailers, increasing inflationary pressures at a time when many households are already struggling.“If the UK Government is to press ahead, it must ensure the scheme is aligned with the devolved nations, allowing efficiencies of scale to reduce the costs and complexity which will face consumers. They must also ensure the scheme is cost-neutral for retailers by committing to a fair retail handling fee.”