What is the Latest on the UK's Deposit Return Scheme?

A deposit return scheme (DRS) charges a small deposit on containers, like plastic bottles and cans, which is refunded when containers are returned empty at a designated collection point.

DRS are already in place in more than 50 countries and territories around the world and some these systems achieve a return rate of around 90%. 

The UK Government announced in April 2024 that a DRS for England and Northern Ireland was on the way for 2027 and Wales is set to be doing the same.

The Welsh Government issued an update on its DRS progress in July 2025 which may hint at what the scheme will look like across the UK.

Wales' government will work alongside the English UK Government-appointed Deposit Management Organisation (DMO) that was set out in April 2025 alongside engaging with businesses that produce eligible packaging.

Huw Irranca-Davies, Wales' Deputy First Minister And Cabinet Secretary For Climate Change And Rural Affairs, says: “Wales has a proud record of leading the way on recycling and our DRS is being developed to build on and not detract from this success.

“In planning these next steps, we are therefore focused on ensuring that it will complement the collective efforts households, businesses, local authorities and industry partners have made across Wales. 

“In doing so, we are drawing on the world’s best schemes, where reuse is already delivering real-world benefits for businesses and consumers alike.

"I am grateful for the positive and constructive collaboration we have with industry, which is helping to shape the scheme in a way that is both ambitious and practical.”

Why does Wales want a DRS?

A survey by Keep Wales Tidy in 2023-24 showed there was drinks-related litter on 43.6% of Welsh streets, with the presence of glass bottles more than doubling in four years.

There are health and safety concerns around broken glass being left in public areas, especially in parks, play areas and coastal locations.

The UK Government decided to exclude glass from its DRS plans, but Wales is looking to approach this differently.

Keep Wales Tidy said that it was important to get the DRS scheme in place as early as 2025.

“The prevalence of drinks litter is beyond frustrating when the solution, a comprehensive DRS, is within our grasp,” says Owen Derbyshire, Keep Wales Tidy's Chief Executive Officer.

“We're urgently calling on governments across the UK to prevent further delays and proceed with rolling out the scheme.”

The UK DMO says that DRS can stop millions of tonnes of carbon from entering the atmosphere by increasing recycling rates and improving the quality of material being recycled.

Huw says “with independent analysis setting out that moving to a circular economy could unlock £3.8bn (US$5bn) in savings for the Welsh economy, while creating green jobs, driving innovation and building resilience in key sectors.

“This is an important economic opportunity. 

“In bringing forward a scheme that supports the roll-out of reuse, we are not only ensuring our DRS is future-proofed and will deliver tangible benefits for the people of Wales, we will also continue to play an important role in helping to shape a more coherent and sustainable approach for the whole UK.”

The challenges of setting up a DRS

Nationwide Waste Services reports that the DRS scheme could present some challenges and barriers, specifically for small businesses:

• The initial investment that small businesses will have to put in for collection points and handling facilities may create financial strain
• Especially in urban areas, finding space for storage and infrastructure for collection points may be a struggle. To overcome this challenge, organisations may need to share resources and optimise space utilisation
• DRS success rides on consumer engagement and participation, so small businesses may struggle to educate consumers and encourage them to use the scheme. Public awareness campaigns, clear signage and effective communication from governments will be important to overcome this.

Allison Ogden-Newton OBE, Chief Executive at Keep Britain Tidy, says: “A Deposit Return Scheme really is a silver bullet that will get plastic drinks bottles and aluminium cans out of our parks, off our streets and away from our rivers and seas.  

“Depressingly we litter, burn or bury millions of drinks containers each and every day. This legislation will end all that, save the taxpayer millions in clean-up costs and give recycling a real shot in the arm.  

"Backed and paid for by producers, this method of retrieval and recycling is tried and tested the world over so at Keep Britain Tidy we are putting out the bunting that this government is committed to make it happen, for us all.”

Want to hear more? Fraser MacIntosh, Head of External Affairs and Sustainability at Suntory Beverage and Food GB&I will be delivering a keynote on the UK Deposit Return Scheme at Sustainability LIVE London 2025. Tickets are available here.