Understanding the UK Deposit Return Scheme (DRS)

The UK is preparing for one of the most significant shifts in packaging and recycling policy in decades: the introduction of a national Deposit Return Scheme (DRS). A DRS requires consumers to pay a small, refundable deposit when purchasing selected single-use drinks containers. This deposit is returned when the packaging is brought back for recycling, encouraging higher return rates and reducing litter.

As the UK government aims to introduce a DRS for England and Northern Ireland from October 2027, with Scotland and Wales planning similar schemes, businesses across the value chain will need to prepare for new responsibilities, costs, and operational changes. These reforms sit alongside other major legislation, including Extended Producer Responsibility (pEPR) and Simpler Recycling, all designed to increase recycling rates and shift the burden of waste management onto producers.

Valpak’s latest report examines what a successful DRS must achieve in the UK and draws on international evidence, data, and operational learnings from established schemes across Europe, including Ireland’s 2024 rollout. The paper explores three critical themes that will determine whether the UK can deliver a high-performing system:

• Finance – Ensuring long-term financial sustainability and a fair distribution of costs

• Convenience – Creating a return system that consumers can and will use

• Materials – Capturing high-quality recyclate at scale while reducing litter and resource use

A well-designed DRS has the potential to deliver higher recycling rates, cut greenhouse gas emissions, reduce reliance on virgin materials, and encourage more environmentally conscious consumer behaviour. This report highlights the considerations policymakers and industry stakeholders must balance to achieve a system that is financially viable, socially accepted, and environmentally beneficial.