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England moves forward with Deposit Return Scheme, set for October 2027 rollout

The House of Commons has approved a Deposit Return Scheme (DRS) for England and Northern Ireland, set to begin in October 2027. 

The initiative, which aims to reduce plastic waste and boost recycling, has been praised for its environmental benefits but has also raised significant concerns among alcohol producers. These businesses, particularly smaller breweries and distilleries, fear added costs and logistical challenges as they prepare to adapt to the scheme’s requirements.

Decade-long wait for action

The initiative has been years in the making. Initially proposed by the Environmental Audit Committee in 2017, chaired at the time by Labour MP Mary Creagh, the DRS faced repeated delays. “Previous Governments promised that such a scheme would be put in place, yet here we are,” Creagh said, highlighting that “the Conservatives recycled Ministers at the Department for Environment, Food and Rural Affairs up to seven times, but they did little to reduce the millions of empty plastic containers littering our high streets, washing up on our beaches and polluting our rivers.”

The scheme’s approval comes after an earlier postponement last April, pushing the start date to 2027 from its original timeline.

How the DRS will work

Consumers will pay a deposit on drinks containers at purchase, redeemable when the container is returned to a designated collection point. While plastic, aluminium, and steel are included, glass containers are notably absent due to what Creagh described as “considerable up-front costs.”

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The DRS will be centrally managed by an industry-led, not-for-profit Deposit Management Organisation (DMO), responsible for overseeing collection targets, paying return point operators, and ensuring recycling compliance.

Regional challenges

The UK-wide roll-out faces challenges posed by varying regional policies. The Welsh Government, which advocates for including glass in its DRS, withdrew from the joint scheme last year. Meanwhile, Scotland, initially planning to launch a separate scheme, is now expected to align with the 2027 timeline.

Northern Ireland’s involvement also sparked debate, with DUP MP Jim Shannon questioning the extent of consultation. Creagh assured MPs that her department had been in regular dialogue with Northern Irish officials, noting that DEFRA (Department for Environment, Food and Rural Affairs) was responsible for delivering the scheme in the region.

A double-edged sword for alcohol producers

Despite its environmental promise, the DRS has sparked anxiety among alcohol producers, many of whom feel sidelined by the scheme’s design. While the exclusion of glass reduces costs for some businesses, it also leaves a significant gap in addressing waste from glass bottles — a staple of the alcohol industry. Meanwhile, smaller producers face potential cost increases and logistical headaches, particularly if future adjustments bring glass into scope.

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