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Government Appoints Operator For Deposit Return Schemes

It was announced today that the UK Deposit Management Organisation Ltd (UK DMO) will operate the new Deposit Return Schemes (DRS) for single-use plastic and metal drinks containers in England, Northern Ireland and Scotland.

Lidl-DRSThe appointment has been made by the UK Government and DAERA. In Scotland, Ministers also decided that UK DMO should be designated as the DRS administrator.

The business-led, not-for-profit organisation has been created to deliver the environmental programme, which aims to cut litter, boost recycling and reduce carbon emissions.

According to a report from The Countryside Charity, introducing DRS is expected to create up to 4,000 jobs across the UK and will bring investment in infrastructure required to deliver the scheme, including storage, logistics, and reprocessing.

UK DMO will now begin working with the three governments, business, including drinks producers and retailers, consumer and environmental groups to design and operate a scheme “which works for everyone”. Producers, retailers and other interested parties are being encouraged to visit the UK DMO website and register their interest in getting updates.

UK DMO is governed by a Board that brings together voices from across the drinks and retail sector in all three nations. Members have been nominated by trade associations representing both large and small producers, major supermarkets, small convenience stores and wholesalers. Recruitment is also underway for an independent Chair and non-executive directors.

The Board includes experienced figures from companies such as Shepley Spring, Radnor Hills, Coca-Cola Europacific Partners, Heineken UK, Lidl, Tesco and Co-op.

UK DMO will be responsible for designing and operating the systems that make the scheme work – from producer registration to logistics, finance, fraud prevention and public communications.

In a joint statement, the UK DMO Board said: “DRS is an opportunity to deliver a transformational step forward in the circular economy in the UK and the appointment of the DMO is a major milestone in that journey.

“We don’t underestimate the scale of the challenge, but our aim is simple – to build a system that’s fair, efficient and easy to use. Our work is already underway, and we’ll be working closely with governments, businesses of all sizes, environmental groups and consumer bodies to move forward as quickly as possible.”

UK DMO has been tasked by the three governments with delivering a Deposit Return Scheme to go live in October 2027. From that date, when people buy drinks containers made from PET plastic, steel and aluminium between 150ml and 3 litres, they will pay a small deposit, which they will get back in full when they return the empty container for recycling.

British Soft Drinks Association Director General, Gavin Partington, commented: “This appointment marks a key milestone in realising the opportunities of a more circular economy, driving £1.13bn of industry investment over the next three years and creating more than 4,000 jobs across England, Scotland and Northern Ireland. The British soft drinks industry looks forward to playing our part in ensuring successful delivery of a DRS by October 2027.”

British Retail Consortium (BRC) Director of Food and Sustainability, Andrew Opie, added: “A well-designed Deposit Return Scheme (DRS), with retail at its heart, will be an important contribution to delivering a circular economy in the UK. We welcome today’s appointment of the Deposit Management Organisation (DMO) to oversee the DRS. Retailers and the BRC have been central to the DMO’s development, committing significant funding, time and resources to get to this point, and we are pleased that our voice will continue to be heard as the initiative progresses.

“The DMO must now get to work to ensure the smooth delivery of a DRS that works for businesses and consumers. We look forward to engaging with them and the government to ensure that DRS makes a meaningful difference to recycling across the UK.”

James Lowman, Chief Executive of the Association of Convenience Stores (ACS), said: “This is a major step towards the delivery of a Deposit Return Scheme for the UK. For the scheme to deliver a step change in recycling rates, local shops will need to play an integral part, offering a convenient network of return points both for local residents and people consuming drinks on the go.

“We are looking forward to working with the newly-formed Deposit Management Organisation to ensure that the scheme is operationally viable and attractive for retailers to take part in. With less than two-and-a-half years before launch, it is vital that retailers can make informed choices about how to take part in the scheme, and we are committed to providing the information and advice they need.”

Meanwhile, Elise Seibold, Chief Operating Officer, Suntory Beverage & Food GB&I, commented: “The appointment of the UK DMO is another significant step towards a circular economy for drinks containers. Through cross industry collaboration, we show our commitment to delivering a scheme that works for everyone – drinks producers, consumers and retailers. As well as long-term benefits such as reduced litter and increased recycling rates, an October 2027 DRS is also a critical step for businesses, and the UK, to achieve net zero. Together we can create a scheme that reduces waste, fosters sustainable habits and sets a global standard for environmental leadership.”