The drinks deposit return scheme starts on 1 October 2027, and the deposit, return point fees and exemption criteria are now set.
What is in scope and where
England, Scotland and Northern Ireland launch together. Exchange for Change, a not-for-profit body, runs the scheme in all three. It covers single-use drinks containers from 150ml to 3 litres in PET plastic, steel or aluminium, but not glass. In April 2026 it confirmed a flat 20p deposit on every in-scope container.
Wales has its own scheme from the same date. It includes glass bottles, but glass carries a zero deposit and no labelling requirement until 30 September 2031.
The deposit runs through the supply chain. Retailers pay it to the producer or wholesaler when buying in-scope drinks and charge it to the shopper at the till. Online sellers must charge it too but need not take containers back, so marketplace sellers should ask how their platform will add the 20p. In England and Northern Ireland, shelf and online prices must show the deposit separately as well as the total.
Who has to take containers back
The return point duty falls on groceries retailers. The England and Northern Ireland regulations define these as supermarkets, grocery stores, convenience stores and newsagents, and Scotland takes the same approach. A gift shop or health and beauty store with a small drinks fridge still charges the deposit but is not on that list.
Small urban shops are exempt automatically. With under 100 square metres of retail space in an urban area, you do not host a return point, though you still charge the deposit. Exchange for Change says urban shops with 100 to 199 square metres of sales area and rural shops under 200 square metres can apply for an exemption, as can sites limited by proximity, listed building status, access or utilities. Approval depends on local return point coverage, with application details due in the third quarter of 2026.
Return points are paid per container. The handling fee is 3p per container at a manual, over-the-counter return point. Reverse vending machines earn 5p for up to 225,000 items a year and 1.3p above that. Small independents installing a machine can get a £6,000 grant per site, paid in three annual instalments of £2,000.
Preparing the shop
Space and staff. At a manual return point, staff check containers at the counter, bag and tag them, and store them for collection. Work out where full bags can sit without blocking an exit, and who handles returns at busy times.
Cash flow. A case of 24 in-scope cans will cost £4.80 more in deposits when you buy it, recovered only as the cans sell. Return points also hand out refunds before being reimbursed, so avoid tying cash up in slow drinks lines.
Stock that straddles launch. In England and Northern Ireland, drinks first supplied in the UK before 1 October 2027 fall outside the scheme and carry no deposit. Existing barcodes on in-scope drinks are also changing, so expect old and new versions of the same product. Check your till can tell them apart, and avoid overbuying drinks in September 2027.
What to do now and what can wait
- Now: measure your retail space and check if your site counts as urban, as that decides automatic exemption.
- Now: sign up for Exchange for Change updates to hear when applications open.
- Now: ask your EPOS provider how it will handle deposit charges, price displays and new barcodes.
- Can wait: choosing a reverse vending machine, until grant eligibility details are out.
- Can wait: staff training and signage, until closer to launch.
None of this touches the personal care, health and hygiene lines we supply at Deal Direct Trade, but deposits and bagged empties will compete with them for cash and stockroom space. Our guide to protecting retail margins covers the wider squeeze.