UK Deposit Return Scheme to Launch in October 2027
From October 2027, returning empty bottles and cans will become part of everyday life across England and Northern Ireland. Under the UK’s new Deposit Return Scheme (DRS), customers will pay a small refundable deposit when buying certain drinks, and get that money back when the container is returned.
Major supermarkets including Tesco, Asda and Morrisons are expected to play a central role, hosting return points for bottles and cans as part of the government’s wider push to reduce litter and improve recycling rates.
The scheme, introduced by the Department for Environment, Food and Rural Affairs (Defra), is designed to cut down the growing volume of drinks packaging ending up on streets, in countryside areas and in marine environments.
While the system affects everyone who buys bottled or canned drinks, the legal and operational responsibilities sit primarily with businesses across the drinks supply chain. This includes producers, importers, wholesalers, retailers and many hospitality venues.
From manufacturing and labelling through to storage, take-back, refunds and collections, DRS introduces new compliance duties that businesses must understand well in advance of the 2027 start date.
For organisations selling drinks, whether through retail premises, hospitality venues, vending machines or online channels, preparation will not simply be administrative. It will involve changes to waste handling, storage space, internal processes and collection arrangements.
What is the Deposit Return Scheme?
The Deposit Return Scheme applies to single-use drinks containers sold in England and Northern Ireland.
When a customer buys an in-scope drink, they will:
- pay a refundable deposit at the point of purchase
- receive that deposit back when returning the empty container
The scheme will officially come into force on 1 October 2027.
Which drinks containers are included?
The deposit applies to containers that:
- are made mainly from PET plastic, aluminium or steel
- have a capacity between 150ml and 3 litres
- are designed for single use or short-term use
Containers are still included even if the lid is made from a different material.
The scheme does not apply to:
- reusable containers
- HDPE containers (such as standard milk bottles)
- containers used for liquid medicines
- flavour enhancers or syrups added to drinks
The role of supermarkets and major retailers
Large retailers sit at the heart of the scheme.
Under the regulations, supermarkets, grocery stores, convenience stores and newsagents selling in-scope drinks must:
- charge the deposit to customers at the till
- pay the deposit to producers or wholesalers when purchasing drinks
- host a return point for empty containers (unless exempt)
Return points may be:
- manual (over-the-counter)
- automated, using reverse vending machines
This means supermarkets such as Tesco, Asda and Morrisons etc will become key locations where customers reclaim deposits on bottles and cans.
Retailers must also:
- register with the deposit management organisation
- refund deposits at the point of return (cash, card or voucher)
- store returned containers securely for collection
- display clear information explaining how the scheme works
Which businesses can host return points?
Not only supermarkets will be involved.
Other organisations may apply to host voluntary return points, including:
- hospitality venues
- food-to-go outlets
- schools and colleges
- gyms and leisure centres
- community or sports facilities
- mobile caterers
- businesses operating vending machines
Small retailers in urban areas may qualify for exemptions if their retail space is under 100m², although they can still choose to participate voluntarily.
Responsibilities across the drinks supply chain
The Deposit Return Scheme affects every stage of the supply chain, not just retailers.
Suppliers and wholesalers
Anyone selling filled drinks containers must:
- charge the deposit when supplying drinks
- only supply containers registered under the scheme
- ensure scheme labelling is present
The deposit does not apply when selling unfilled containers.
Producer responsibilities
A business is classed as a producer if it:
- manufactures branded drinks
- imports drinks into the UK
- fills and seals drinks to order (for example crowlers in hospitality venues)
From October 2027, producers must:
- register with the deposit management organisation
- pay producer fees based on container volumes
- apply deposits to all in-scope containers
- transfer collected deposits through the supply chain
- report the number of containers placed on the market
Low-volume product lines (under 5,000 units per year) qualify for limited exemptions, although registration and reporting are still required.
Selling drinks for consumption on premises
Cafes, pubs, hotels and restaurants selling drinks for immediate on-site consumption may opt out of charging the deposit at the till.
In these cases:
- customers leave containers on site
- containers are stored for collection
- deposits are refunded back through the scheme
Clear signage must be displayed so customers understand that deposits are not charged and containers should not be taken away.
Where drinks are sold both for on-site consumption and takeaway, deposits may apply only to takeaway items.
Takeback services for online sales
Businesses offering drinks through online or delivery channels can register as takeback service providers.
This allows empty containers to be collected from customers at delivery, with deposits refunded at the same time, an option particularly relevant for e-commerce and subscription models.
Enforcement and compliance
Compliance will be monitored by:
Non-compliance may result in enforcement action under:
The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025
What this means in practice
For consumers, the scheme introduces a clear financial incentive to return bottles and cans.
For businesses, particularly retailers, hospitality venues and drinks producers, it represents a major operational shift – affecting:
- point-of-sale systems
- storage space
- collections and logistics
- staff training
- waste handling procedures
Preparation well ahead of 2027 will be essential.
Affordable Waste Management provides regular commercial waste collection for UK businesses, with scheduled collections and the correct paperwork in place. If your operations are likely to see changes in waste volumes or container handling as new recycling rules roll out, we can keep your collections consistent and compliant, without disruption to day-to-day trading.
Get a waste collection quote suited to your business.