England & Northern Ireland DRS: Overview
- DRS launches on 1 October 2027 with a 20p deposit on eligible containers
- PET bottles and aluminium and steel cans will be included
- Manufacturers must update packaging, labelling and barcodes.
- Producer fees are set at zero until the end of 2028
- Businesses should start planning packaging and operational changes now
Drinks businesses in England and Northern Ireland have less than a year to prepare for the introduction of a Deposit Return Scheme (DRS), which will bring new packaging, labelling and compliance requirements ahead of its October 2027 launch.
Due to come into effect on 1 October 2027, the scheme will introduce a 20p refundable deposit on eligible drinks containers, which consumers can reclaim by returning empty packaging to designated collection points.
It will cover single-use polyethylene terephthalate (PET) plastic bottles and steel and aluminium cans between 150ml and three litres.
For drinks manufacturers, the changes will extend beyond the deposit itself, requiring preparations around packaging specifications, product identification, registration and producer fees.
What will the Deposit Return Scheme involve?
The scheme aims to increase recycling rates, reduce packaging litter and support a circular economy by making it easier to collect used drinks containers and recycle them into new packaging.
Deposit return schemes have achieved high container return rates in other European markets. Germany has a reported return rate of 98% for eligible single-use drinks containers, while Lithuania saw its rate rise from below 34% to 92% within two years of introducing its scheme in 2016.
Exchange for Change has published material specifications for PET plastic, aluminium and steel containers in England, Scotland and Northern Ireland. These set out design requirements intended to ensure packaging can be identified, accepted by reverse vending machines and processed efficiently.
Wales will also include glass drinks containers in its scheme, with transitional arrangements planned between 1 October 2027 and 30 September 2031.
What will DRS mean for drinks manufacturers?
Preparing for the scheme will require manufacturers to review their packaging, labelling and production processes. Eligible containers will need to meet the relevant material specifications and carry a DRS logo and registered barcode so they can be identified and processed through the collection system.
This could mean updating packaging artwork and barcodes, adjusting production schedules and coordinating with packaging suppliers and co-packers to ensure compliant containers are available ahead of launch. Manufacturers will also need to consider existing packaging stocks and products moving through the supply chain.
Producer fees will be set at zero for the first 15 months of the scheme, from October 2027 to December 2028. Exchange for Change has proposed fees of 0.6p per aluminium or steel container and 2.3p per PET container from January 2029 to December 2032. These rates are due to be reviewed and reconfirmed in May 2027.
Although the initial fee period will reduce one element of the immediate financial burden, manufacturers will still need to account for the work involved in updating packaging and meeting compliance requirements. Producers must register with Exchange for Change and report information about the eligible containers they place on the market.
What should manufacturers do now?
Manufacturers should review their packaging portfolios against Exchange for Change’s material specifications, establish their registration requirements and identify the product information needed for registration and reporting. They should also assess changes to packaging artwork and production lines, and speak to suppliers and co-packers about lead times for compliant packaging.
Businesses should monitor the latest transition guidance as well. Exchange for Change has outlined provisional arrangements under which finished drinks containers manufactured and filled before 1 October 2027 can continue to be sold after launch without DRS labelling or fees. However, arrangements for some unused, non-compliant packaging remain subject to regulatory agreement, making it important for manufacturers to follow further updates.
