There will be a flat 20p deposit value for the UK deposit return scheme (DRS) fee when it is introduced from October 2027, according to the programme operator.
Exchange for Change announced last week that consumers will be able to claim back the 20p when recycling the aluminium, steel or PET plastic containers included in the DRS.
The 20p deposit will be applied to all single-use drinks in PET plastic, steel and aluminium containers between 150ml and 3 litres at the point of purchase, and will be fully refundable to consumers when the containers are returned to a drop-off recycling point. Reverse vending machines and other collection points are set to be deployed across the UK – including in and outside many retail stores – to help support the scheme.
Exchange for Change’s announcement follows a period of extensive consultation with industry and analysis of existing DRS operations across the rest of the world. This work looked at different deposit values and variable approaches to consider the most effective way to ensure the deposit provides a sufficient behavioural incentive for consumers to return containers, is proportionate and simple to understand and is workable for producers and retailers.
Based on market research on consumer behaviour, deposit levels below 15p are unlikely to provide sufficient incentive to help achieve target return rates of 90% of containers within three years, while it was found that a 30p level could result in a disproportionate consumer cost exposure at the point of purchase.
Variable deposit structures are in place in some countries which run their own DRS, but Exchange for Change’s analysis concluded this often results in consistently lower return rates on smaller containers.
The move to announce the fee now is intended to support producers and retailers in their planning – and it is Exchange for Change’s role to ensure there is a smooth roll-out.
Russell Davies, Exchange for Change CEO, remarked: “The deposit value is a pivotal part of how the DRS will work in practice.
“That’s why we’ve engaged widely with industry, undertaken extensive market research and in-depth analysis on how schemes work in other countries. This work has identified that a flat 20p deposit is the most proportionate and sustainable amount for the UK.”
He added: “Confirming this now, with just under 18 months to go until the DRS is live, will help producers and retailers with their planning and preparation for the scheme, and we will continue to support them closely throughout this process.”
Earlier this month, a panel discussion hosted at the National Convenience Show in Birmingham and attended by Green Retail World provided some insights on the DRS from different stakeholders.
Coca Cola Europacific Partners strategic lead for DRS, Samantha Walker, said the “number one priority” is to get Wales involved in the UK scheme. At present, Wales is set to run its own DRS, while England, Scotland and Northern Ireland’s is all under one banner.
[image credit: Exchange for Change]
