Deposit Return Scheme

Deposit Return Scheme

The UK Deposit Return Scheme (DRS), named Exchange for Change, is coming into effect in October 2027 and will require certain businesses to take part.

The scheme aims to encourage greater recycling of single-use plastic bottles and metal drinks cans by adding a refundable deposit to each container, which customers can reclaim when they return it.

The Deposit Management Organisation (DMO), now known as Exchange for Change, is responsible for the roll out and operation of the scheme throughout 2026, 2027 and beyond. Details of the scheme are still being decided and worked through. Recorra has created this guide based on the information currently released by Exchange for Change. We will continue to update this page and notify clients as new information becomes available.

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What Is the Deposit Return Scheme?

Exchange for Change is the UK’s Deposit Return Scheme for single‑use PET plastic bottles and aluminium or steel cans between 150ml and 3L in volume.

A refundable deposit (expected to be 20p) is added to the price of each eligible container. Customers can reclaim the deposit by returning the container to a designated return point, typically a participating retailer or reverse vending machine.

What Is the Purpose of a Deposit Return Scheme?

Exchange for Change aim is to encourage greater capture of on-the-go drinks containers. This is to:

  • Increase recycling rates of plastics and aluminium cans
  • Reduce litter and pollution
  • Improve the quality of materials collected for recycling
  • Support the circular economy by keeping resources in use

Exchange for Change aim to achieve target return rates of 90 per cent of containers within three years.

Will the Deposit Return Scheme Apply to My Business?

Businesses are included in the scheme if they sell single-use PET plastic bottles and metal cans drinks between 150ml to 3L and will be required to apply the refundable deposit. Providing return points and refunds will be based on size and other eligibility criteria. 

Providing return points and refunds:

All businesses included in the scheme over 100m² must provide a return point and 20p refund by October 2027, unless exempt.  

Applying the refundable deposit:  

All businesses selling drinks in single‑use PET plastic bottles or metal cans between 150ml to 3L must apply the refundable deposit at the point of sale.
This includes:

  • Shops and supermarkets
  • Bars, cafés and hospitality venues
  • Online retailers supplying drinks
  • Campuses or venues that host retailers

The refundable deposit amount will be 20p per item.

Retailers

Retailers over 100m² are required to host return points unless exempt.

 

Retailers present on campuses are individually responsible for complying with Exchange for Change. However, these retailers may work together to provide joint return points.

 

Smaller venues may host return point voluntarily. Further details on exceptions are yet to be finalised, however Exchange for Change have released the below in a recent webinar.

Hospitality

Hospitality venues may opt out of charging deposits but must still collect containers.

 

Further details are yet to be released by Exchange for Change.

Campuses and venues

Campuses and venues hosting retailers are not responsible to the return points and refunds, the responsibility is on each individual business.

 

Retailers present on campuses are individually responsible for complying with Exchange for Change. However, these retailers may work together to provide joint return points. Campus providers may want to support their retailers by providing mutually agreed and strategic return points to help customers with convenient returns, without causing queues.

What does my business need to do?

01

Charge a deposit on eligible containers

Eligible containers include PET plastic bottles and aluminium or steel cans between 150ml and 3L. The exact deposit return scheme amount (likely 20p) will be confirmed by the DMO who run Exchange for Change.

02

Provide return points and pay back deposit for eligible containers

If your business is over 100m² and does not fit the exemption criteria, you will be required to provide a return point in line with the DMO’s yet-to-be-released requirements.

Return points may be operated manually or through automated collections.

Manual Returns

Under the Deposit Return Scheme, staff at participating locations accept eligible containers over the counter and provide customers with their refunds. Each return is carefully recorded using DMO systems, ensuring accurate tracking of deposits and returns. This process helps maintain transparency, supports compliance with the scheme’s regulations, and allows businesses to manage refunds efficiently.

Strengths
  • Low set up cost
  • Ideal for retailers with limited space
  • Flexible human verification
  • No reliance on machine uptime
  • Easy to scale in remote and rural areas
  • Accessible for people with disabilities, vulnerable users, and those less comfortable with technology
Weaknesses
  • Labour-intensive
  • Slower and less convenient, which may cause queues
  • Higher risk of fraud and human error
  • Storage and security challenges
  • Potential hygiene concerns
  • May discourage consumer participation

Automated Returns

Automated returns under the Deposit Return Scheme use Reverse Vending Machines (RVMs) that scan and collect containers and issue refunds automatically. RVMs will be central to the system, offering a quick, convenient return method. Machines meeting DMO specifications will record all returns in DMO systems, ensuring accurate tracking and efficient operations for businesses and consumers.

Strengths
  • Fast, consistent, and reliable processing
  • Reduces staff workload through automatic counting
  • Good consumer experience
  • Clean and secure storage
  • Strong data and audit capacity
  • Strong data and audit capacity
  • Suitable for larger volumes
Weaknesses
  • Labour-intensive
  • Slower and less convenient, which may cause queues
  • Higher risk of fraud and human error
  • Storage and security challenges
  • Potential hygiene concerns
  • May discourage consumer participation

Business Support

Return Handling Fees

Return Handling Fees are the mechanism that funds the take-back infrastructure in DRS, paying retailers a small amount per returned container to offset the real cost of operating return points. Details of what these will be and how it will work will be released in due course.

Small Retail Support for RVMs

Exchange for Change intends to support smaller businesses with a targeted grant scheme to help smaller retailers invest in Reverse Vending Machines when they are the most appropriate solution. The proposed grant level is £6,000 per site, to be paid in annual instalments of £2,000 for three years, starting three months after implementation. Exchange for Change has set aside £60m to fund these grants over the first three years of scheme operation. More details to come soon. 

Exemption support for smaller retailers

Exchange for Change wants to provide further support for smaller, independent retailers. This includes exploring additional conditions under which retailers will be able to apply for an exemption from hosting a return point, based on proximity to alternative local return points, difficulty hosting a return point and utility limitations. More details to come soon. 

Exchange for Change is in active conversations with regulators on the final details and know that clarity on grants, the Return Handling Fee and exemption criteria are crucial for retailers. More detail will follow in the coming weeks. 

Your Deposit Return Scheme Questions, Answered

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  • The Deposit Return Scheme is set to launch on 1ˢᵗ October 2027 in England, Northern Ireland, and probably Wales. Scotland is adjusting its schedule so the rollout happens across the UK at the same time.

  • The Deposit Return Scheme will cover all single-use PET plastic bottles and metal cans used for drinks ranging from 150 ml to 3 L, allowing consumers to return them and claim a deposit refund.

  • When a customer buys an in‑scope drink, they pay a deposit (expected to be 20p). This deposit sits within the Exchange for Change system, not with the retailer.

    When the customer returns the empty container, the return point (either a staffed counter or a reverse‑vending machine) gives the refund back to the customer.

    All money flows are managed by the Deposit Management Organisation (DMO) for Exchange for Change, which oversees deposit payments, refund processing and return‑point operating fees.

  • Whenever your return point accepts containers and refunds customers the deposit amount, the DMO reimburses you for the discrepancy if you have provided more refunded deposits than you have sold. It will also pay a handling fee to cover your operational costs (yet to be confirmed).

    Handling fees are designed to offset expenses such as staffing, storage space, machine operation, administration and reporting.

    This ensures businesses are not financially worse off for running a return point.

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