DRS handling fees confirmed ahead of 2027 launch
Return point operators across England, Scotland and Northern Ireland have been given greater clarity on the financial framework underpinning the Deposit Return Scheme ahead of its October 2027 launch.
Exchange For Change has confirmed the return handling fees that will be paid to operators participating in the Deposit Return Scheme (DRS) across England, Scotland and Northern Ireland.
Following industry consultation, manual return points will receive 3p per container returned under the scheme.
For operators using reverse vending machines (RVMs), a tiered structure will apply. Return points processing up to 225,000 in-scope containers annually will receive 5p per container, while volumes above that threshold will attract a fee of 1.3p per container.
The announcement provides retailers with greater certainty over the economics of participating in the scheme ahead of its scheduled launch on 1 October 2027.
Clarity for retailers
Travis Way, managing director at EcoVend, part of circular economy specialist Reconomy, said the announcement represented another important milestone in preparations for the scheme.
“The confirmation of Return Handling Fees is another important milestone for businesses preparing for the introduction of the UK Deposit Return Scheme,” he said.
“For retailers, having greater clarity on the financial framework now will help support investment decisions and operational planning ahead of the scheme’s launch in 2027.”
Way welcomed the differentiated structure for manual and automated returns, arguing that it reflects the realities faced by retailers operating at different scales.
“It is encouraging to see a tiered approach that recognises the different realities facing retailers of varying sizes and return volumes,” he said.
“Reflecting the distinction between manual return points and reverse vending machine operators should help ensure the scheme remains practical and accessible across a diverse retail landscape.”
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Reviews planned before launch
Exchange For Change has also committed to reviewing the fee structure before the scheme launches and on an ongoing basis thereafter.
Way said this flexibility would be important as businesses gain practical experience of operating within the system.
“The commitment to review fees before launch and on an ongoing basis will also be important,” he said.
“As businesses gain experience of operating within the scheme, it is vital that the fee structure continues to reflect real-world costs and supports high levels of participation, helping to deliver the strong return rates needed to create a more circular economy.”
Part of wider UK preparations
The announcement comes as governments and industry continue preparations for the introduction of deposit return systems across the UK.
As previously reported by the drinks business, Wales approved legislation for its own Deposit Return Scheme in March 2026 ahead of the same October 2027 launch date.
Under the Welsh model, consumers will pay a refundable deposit on eligible drinks containers, reclaiming the money when empty containers are returned for recycling.
However, Wales has chosen to include glass within the scope of its scheme, creating a significant point of difference from arrangements planned elsewhere in the UK and prompting concerns from drinks industry bodies over cross-border complexity.
Industry organisations including the Wine and Spirit Trade Association, the Society of Independent Brewers and Associates and the National Association of Cider Makers have argued that consistent rules across all four nations would reduce costs and simplify compliance for producers and retailers operating across multiple markets.
Despite those concerns, supporters of DRS maintain that higher collection rates and improved recycling performance will help create a more circular economy while reducing litter and increasing the supply of recycled materials.
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