Deposit Return Scheme

What is DRS 

A Deposit Return Scheme (DRS) for single-use drink containers is a circular economy initiative aimed at ensuring materials are recycled into new containers. Consumers pay a small deposit when buying a drink, which is refunded upon returning the empty container. The UK plans to implement DRS by October 2027, with PET plastic bottles, aluminium, and steel cans (150ml to 3L) in the scheme. Eligible containers will be marked with a scheme logo.

Drinks containers not included in DRS will be included in packaging Extended Producer Responsibility (https://www.daera-ni.gov.uk/topics/waste/packaging ) and should still be recycled.

Why a DRS

Many countries have successfully used Deposit Return Schemes (DRS) to boost recycling rates of drink containers, often reaching 90% or higher. In contrast, the UK’s current rate is around 70%, leaving 120 million plastic bottles and 75 million cans unrecycled annually in Northern Ireland. These containers often end up in landfill or incineration, contributing to greenhouse gas emissions and increasing demand for virgin materials. A DRS would help by creating cleaner, separated waste streams, supplying high-quality materials for closed-loop recycling (e.g., bottle-to-bottle or can-to-can)

The Litter Composition Analysis Report 2022/23 highlights that around 12 million pieces of litter pollute Northern Ireland’s streets at any time, with just four producers responsible for 50% of all branded litter. The report underscores the severity of the litter issue and the need for legislation to support a circular economy. It includes:

• A list of the top 25 litter-producing companies
• Analysis of public bin waste
• An overview of estimated litter items
• Recommendations for tackling litter

This report is part of a DAERA-funded project aimed at reducing waste, especially from single-use plastics.

Appointment of Exchange for Change formerly (UKDMO) 

The UK Deposit Management Organisation Ltd (UK DMO was appointed as the official operator of the Deposit Return Scheme (DRS) for England and Northern Ireland in May 2025. Exchange for Change (EfC) the brand was officially launched in January 2026 helping to strengthen the scheme’s identity across the UK.   In June 2025, Exchange for Change was designated as the scheme operator in Scotland.

 Exchange for Change is a business-led, not-for-profit organisation responsible for administrating  and running the DRS, including producer registration, logistics, financial oversight, and public engagement. It is governed by a board representing major drinks and retail companies.

The scheme is set to launch in October 2027, requiring deposits on single-use plastic and metal drinks containers (150ml–3L), refundable upon return. 

The DRS aims to reduce litter, increase recycling, cut carbon emissions, create up to 4,000 jobs, and drive £1.13 billion in industry investment over three years.

Exchange for Change Responsibilities

The EfC is tasked with:

• Achieving the collection targets set out in legislation
• Designing and delivering the infrastructure required to enable the scheme
• Managing and overseeing the scheme’s operations, including both material and financial flows
• Developing and sharing technical guidance to help businesses prepare for the scheme
• Collaborating with key stakeholders to support the scheme’s design
• Promoting public awareness and understanding of the scheme
• Providing a straightforward process for users to submit queries

For further details, exchangeforchange.co.uk.

Policy development and related information

For more information about the scheme, read:

• guidance on drinks producer and retailer responsibilities for the DRS
• The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025
• The Deposit Scheme for Drinks Containers (England and Northern Ireland) Regulations 2025 - Impact Assessment
• DRS on the Scottish Government website

For background on policy development of the scheme, read the:

• response to the 2021 consultation
• 2021 consultation: Introducing a Deposit Return Scheme in England, Wales and Northern Ireland
• response to the 2019 consultation
• 2019 consultation: Introducing a Deposit Return Scheme in England, Wales and Northern Ireland

For more information about the separate Welsh Government scheme, read:

• their written statement on the development of a Deposit Return Scheme for Wales, published on 18 November 2024; or
• Welsh Government deposit return scheme – UK Internal Market Act exclusion policy paper