The Deposit Return Scheme (DRS) that was due to be implemented in Scotland in 2025 has been delayed until 2027 and will be aligned across all four nations across the UK. The UK government and devolved administrations in Scotland, Wales and Northern Ireland have confirmed that it will be launched across the UK in October 2027 and that there will be three separate schemes: one covering England and Northern Ireland, and others in each of Scotland and Wales.
The update has also confirmed that hospitality will no longer be required to act as a return point, but venues can voluntarily host a return point.
Following the announcement, Leon Thompson, Executive Director of UKHospitality Scotland, said, “This announcement is a clear signal that the Scottish Government has listened to our concerns and learnt lessons from its previous attempts to introduce a Deposit Return Scheme.
“Scottish hospitality businesses understood how costly and challenging it would be to act as return points and I’m pleased that this has moved to businesses being able to opt-in, rather than being forced to take back drinks containers.”
Kate Nicholls, Chief Executive of UKHospitality, said, “I’m pleased that all governments across the UK have listened to the concerns of UKHospitality and will be pursuing schemes that ensure maximum alignment and interoperability across the UK.
“The collaboration between governments to reach this point has been positive to see and should act as a blueprint of how to work together on other common areas of concern.
“We support the delay until 2027 and it is recognition of the significant amount of work that still needs to take place to make these schemes work.
“I’m delighted to see this new phase begin with changes that are good for hospitality businesses, most notably not requiring hospitality venues to host a return point. This was a key ask of UKHospitality and such an approach will avoid unnecessary complexity and cost for businesses.
“Hospitality already has one of the best recycling records in the economy and we can do even more, so I hope all governments across the UK will continue to work with us to make these schemes work for businesses, consumers and all of our sustainability objectives.”
Michael Kill CEO NTIA commented, “The decision to delay the implementation of the Deposit Recovery Scheme underscores the necessity for further consultation on its nuances, particularly concerning its impact on businesses. It is imperative to ensure that the scheme caters to the needs of small independent businesses while serving consumers effectively.
“Alignment across the UK is crucial, with consistent rules and materials adopted simultaneously. The disparity in materials, exemplified by Wales’ inclusion of glass, presents a significant challenge, penalising small businesses and potentially impacting, disrupting or placing businesses at a trading disadvantage.
“This discrepancy not only increases costs but also limits the choice and availability of independent products, detrimentally affecting both businesses and consumers alike. We welcome the government’s engagement at all stages of implementation to address these issues comprehensively, ensuring that the Deposit Return Scheme functions equitably for all stakeholders involved.”
The timeline, announced today is as follows:
Phase 1: Regulation and Deposit Management Organisation(s) (DMO) appointment – by Spring 2025
Regulations in place in all administrations, and DMO(s) appointed.
Phase 2: Deposit Management Organisation (DMO) set-up – Spring 2025 to Spring 2026
This phase allows time to establish the DMO(s) as an organisation that is capable of running DRS on behalf of industry in each administration and providing businesses with the information needed to prepare for DRS launch.
This will include:
- securing funding and appointing key delivery partners
- appointing CEO, leadership team and staff
- procuring IT and logistics or collection partners
- designing and publishing decisions on key operational areas, including deposit level, labelling, proposed producer fees, approach to cutover, and RVM specifications
- developing a delivery plan and operational blueprint for obligated businesses
Phase 3: Roll out – Spring 2026 to Autumn 2027
This phase allows time for businesses to make the changes required for DRS.
It includes:
- the DMO(s) establishing the necessary national collection infrastructure, including counting and sorting centres, equipment and collection vehicles, recruiting staff and planning logistics routes
- the DMO(s) setting up the necessary digital and IT infrastructure for the registration and reporting of over 20 billion containers
- retailer activity to make decisions on return point locations and design, procurement and installation of reverse vending machines (including securing planning permissions and reconfigure stores), and training staff,
- producer activity to develop labelling and artwork; make preparations for collecting data; make changes to invoicing systems
- system-wide testing and readiness support
- commencement of consumer engagement campaigns
October 2027: DRS launch
Deposit Return Schemes across the UK are operational. Deposits are applied to in scope drinks containers, which can be redeemed upon return of the container for recycling.
Governments across the UK have committed to pursuing aligned schemes and have removed hospitality from the list of mandatory return points.