Deposit Return Schemes

A deposit return scheme (DRS) involves slightly increasing the cost of particular packaging products — typically beverage containers — and having the extra cost refunded when you return it to a specific location.

Most DRSs in Europe were introduced over a decade ago, before kerbside systems were developed. In the UK, we have a mature kerbside collection scheme and strong recycling rates for some packaging products. For example, in 2023, the collection rate for PET containers was 76%.[1]

In the UK, waste management is a devolved responsibility, so England, Scotland, Wales, and Northern Ireland are in theory able to design and develop their own DRS. However, for a DRS to be completely successful in the UK, it must be implemented nationwide, while providing a convenient way of returning containers used both ‘on the go’ and in consumers’ homes. At the same time, it must not undermine or inconvenience consumers recycling packaging at their kerbside.

All governments within the UK have committed to introduce a DRS in October 2025 but Scotland had planned to launch their system earlier. Due to legal challenges and issues with the internal markets act, this has now been delayed, aligning with the proposed introduction in the rest of the UK. The current situation is that all countries will collect plastic and aluminium beverage containers, while Scotland and Wales will collect glass bottles as well.

Currently, the four governments within the UK are working together to ensure the DRSs within each country are interoperable.

In conclusion…

The design of a DRS for the UK should ideally be consistent across all nations to ensure there is a simple system for businesses and consumers and to reduce the risk of fraud. As a DRS is a form of producer responsibility, it should be introduced at the same time as the reform of EPR so that businesses have time to adapt to the new systems.

A DRS should only have a single fee to make it simpler and easier for the consumer. However, consideration should be given to whether multipacks should be subject to a separate charge due to the disproportionate cost impact this may have on the consumers who buy them.

Any DRS implemented should also minimise inconvenience to consumers who recycle at their kerbside. A DRS would best complement the kerbside system if it focused on packaging typically consumed outside of the home, so should cover all beverage packaging types that are consumed ‘on the go’ to maximise recycling and minimising littering. Coordinated campaigns will still be required to improve collection rates of other non-beverage bottles that tend to be recycled less.

A DRS scheme should be introduced in the most cost-effective way that is convenient for consumers and ensures the least disruption to existing collection and recycling schemes. For this reason, smart technology should be considered in the design of the scheme. The BPF is aware of on ongoing discussions regarding potential digital DRS systems and are supportive of more research in this area.

Any policy intending to increase recycling in the UK should be developed from a holistic viewpoint and should aim to increase overall recycling rates and not just those of single product categories.

Sources

1) RECOUP UK Household Plastic Packaging Survey 2023

Originally published June 2019

Last reviewed and updated July 2024