The government confirmed yesterday that the long-awaited deposit return scheme (DRS) will launch in England and Northern Ireland in October 2027.
Once the scheme launches, consumers will be offered a small financial incentive to return empty plastic and metal drink containers from 150ml to three-litre to a collection point, such as at their local supermarket, so that the bottle or can is recycled.
Circular Economy Minister Mary Creagh said: “This government will clean up Britain and end the throwaway society.
“This is a vital step as we stop the avalanche of rubbish that is filling up our streets, rivers and oceans and protect our treasured wildlife. Turning trash into cash also delivers on our Plan for Change by kickstarting clean growth, ensuring economic stability, more resilient supply chains, and new green jobs.”
The Scottish Government is expected to align its DRS to match the one backed by Westminster MPs. The Welsh Government pulled out of the UK-wide approach last year over its insistence that glass should be part of the scheme.
DRS is used in more than 50 countries worldwide, with the average return rate in Europe being around 90%. However, retailers in the UK have warned that the scheme will add considerable cost to their operations at a time when they are being squeezed by higher taxes and other environmental measures.
Last week, Shadow business secretary Andrew Griffith highlighted that the government’s own impact assessment showed the scheme would have a net cost to business per year of around £288m. He said: “That’s a £2.8bn indirect cost over the 10-year appraisal period. That would be another unsustainable cost heaped on to business, which would be an unwelcome addition to the growing headwinds on enterprise that this government has created.”
Griffith stated that consumers would have to “bear the burden”, adding: “It’s a highly regressive cost burden that would disproportionately hit those on the lowest income.”
A Deposit Management Organisation will be launched in April this year to act as administrator for the scheme and will be a not-for-profit, industry-led body. The government claims that its overall plans for collection and packaging reforms will support 21,000 new jobs and create more than £10bn in investment over the next decade.
Reacting to the implementation of the legislation, Stephen Moorhouse, General Manager of Coca-Cola Europacific Partners (CCEP) GB said: “We’ve been supportive of launching a DRS across the UK for a number of years as they are a proven way of increasing recycling, reducing waste and tackling litter. Therefore, we welcome the clarity provided by the regulation for England and Northern Ireland and are encouraged by recent developments that will ensure an aligned scheme with Scotland, despite wider challenges around a UK-wide approach.
“Delivering to the timelines will be challenging but achievable, and now is the time for industry to roll up its sleeves to create a well-designed system that works for businesses, shoppers and the environment.”
James Lowman, Chief Executive of the Association of Convenience Stores (ACS), added: “We are pleased to have certainty on the DRS regulations so local shops can start to prepare for October 2027 and our communities can realise the benefits of reduced litter and higher quality recycled materials.
“Now the real work begins to make the deposit return scheme a success through cross-industry partnership and a planned network of return points that work for customers.”
NAM Implications:
- Anything approaching a 90% return rate will be deemed successful in terms of efficiency.
- The fact remains that the cost burden will inevitably impact shelf prices.
- Fingers crossed…
