FAQ
The questions retailers actually ask
Grouped by topic. Where the answer depends on your nation, your store size or your sales channel, that is called out explicitly.
General
What is a Deposit Return Scheme?
A DRS increases the amount of plastic, aluminium and steel drinks containers collected for recycling. A refundable deposit is added to in-scope drinks at the point of sale and returned when the empty container is handed back. More material is recycled, and less ends up as litter on streets, in waterways and on beaches.
How much is the deposit?
A flat 20p. It was confirmed in April 2026 as a single level for all in-scope containers, rather than different rates by material.
Which containers are in scope?
Containers made wholly or mainly from PET plastic, aluminium or steel, in a volume between 150ml and 3 litres. That covers the large majority of single-use drinks containers sold in the UK.
Is glass included?
Not in England, Scotland and Northern Ireland. The Welsh scheme does include glass, but no deposit is applied to glass containers in Wales until October 2031.
Who runs the scheme?
Exchange for Change, the trading name of the UK Deposit Management Organisation (UK DMO), is the scheme administrator. It is a business-led, not-for-profit body, separate from and not connected to the UK Debt Management Office.
Return points
Which retailers must operate a return point?
Groceries retailers — supermarkets of any size, grocery stores, convenience stores and newsagents that sell groceries — are the primary return points. Unless exempt, they must register and operate either a reverse vending machine or a manual return point.
What is a groceries retailer?
A retailer that is a supermarket of any size, a grocery store, a convenience store or a newsagent, and which sells groceries.
What is the difference between a manual return point and an RVM?
A manual return point has staff accepting containers over the counter and issuing refunds manually. Containers are checked, bagged, tagged and stored ready for collection. An RVM takes returns directly from the customer, scans and validates each product, issues redeemable deposit vouchers automatically, and compacts the containers ready for collection.
How do I choose an RVM?
The first list of accredited machines is published in October 2026. Weigh up the machine footprint, the space available in your store, and the expected volume of returned containers. Published RVM specifications are available from the scheme administrator.
Do I have to be a return point to sell in-scope drinks?
No. Every store must charge the deposit on in-scope containers, even if exempt from hosting a return point. Consumers can return containers to any return point of their choice. If you sell online you are not obligated to be a return point, but you must still charge deposits.
Exemptions
Are all stores under 100m² automatically exempt?
No — only stores under 100m² in an urban area are automatically exempt. Other stores may apply and have their application assessed against specific criteria.
What is the extended exemption criteria?
Agreed with regulators in June 2026. Urban retailers with a sales area between 100m² and 199m², and rural retailers with less than 200m², may apply for a size-based exemption. Further allowances exist on grounds of proximity, heritage or listed building restrictions, site access, or lack of access to utilities.
Is there a size limit above which I cannot be exempt?
Yes. Groceries retailers above 200m² may apply on size grounds, but the criteria uphold a presumption against granting an exemption to stores at or above 200m².
How do I apply for an exemption?
Exchange for Change approves exemptions and publishes the full application process and detailed eligibility criteria. The process is intended to be light touch. Sign up to scheme communications to be notified when applications open.
Fees and grants
What is the Return Handling Fee?
A fee paid to return point operators to help cover the costs of collecting and storing containers, staff training, and the rental value of the floor space used. It is structured in tiers to reflect the diversity of the UK retail landscape.
What are the handling fee rates?
Manual return points receive 3p per container. Automatic return points receive 5p per container for the first 225,000 in-scope items returned annually, and 1.3p per container thereafter in the same year.
Is there funding available for smaller retailers?
Yes. £60m of grant funding is available to help up to 10,000 small, independent retailers install reverse vending machines across England, Northern Ireland and Scotland. Grants are £6,000 per site, paid in three annual payments of £2,000, with the first paid three months after installation.
Will operating a return point be profitable?
It varies substantially by store. The handling fee is designed to offset direct costs, but throughput, floor space, labour and equipment all matter. Use the calculator on this site to model your store — and get grant funding into the mix if you are a qualifying independent.
Producers
Do I need a new barcode and logo?
All in-scope products must carry a DRS-compliant barcode registered with the scheme administrator, plus the UK Deposit Return Scheme logo. The barcode links the product to the scheme Article List, confirms the deposit and producer fee have been applied, and allows automated acceptance at RVMs and identification at counting and sorting centres. Products without a registered barcode will not be accepted for return.
When can producers start using the new barcode?
In-scope containers with DRS-specific barcodes and the scheme logo must not be sold to consumers before 1 October 2027. Using them early would signal that a deposit and producer fee have been applied when they have not.
Are there exceptions for small producers?
Low volume producers — those placing fewer than 5,000 units per SKU per year, or 6,250 units in the first 15 months — are exempt from the logo and barcode requirements and from producer fees. They must still register and report volumes to the scheme administrator.
What producer fees apply?
Producer fees for all drinks containers are set at 0p for the first 15 months of the scheme, following extensive industry consultation. They will be reviewed, validated and reconfirmed in May 2027.
Am I a producer if I sell own-brand drinks?
Only if you place own-brand drinks on the market in the relevant nation. Packaging manufacturers are not included.
Hospitality
Do hospitality venues have to operate a return point?
No. Hospitality venues are not required to operate return points under the regulations.
When must hospitality venues charge a deposit?
It depends where the drink is consumed. For off-site sales such as takeaways, the deposit must be charged. For on-premise consumption in Scotland, where consumption will definitely take place on-site, a deposit should not be charged — where consumption may occur off-premise there is an option to charge. In England and Northern Ireland there is an option to charge on-premise.
What if I sell both on and off premise?
Drinks sold for off-premise consumption must include a deposit. On-premise sales are optional. Where you cannot guarantee the container will remain on-premise, applying the deposit is recommended.
Do I have to collect containers consumed on site?
In Scotland, yes: premises can opt out of passing the deposit to the consumer, and containers consumed on-site must be collected and stored for collection managed by the scheme administrator. In England and Northern Ireland this is optional — premises can opt out of passing the deposit on, and containers can go to a registered return point or a collection partner appointed by the scheme administrator. Full operational detail follows the logistics tender in Q3 2026.
VAT and tax
How is VAT handled on deposits?
From the commencement of the schemes, expected Autumn 2027, the scheme administrator will account for VAT on deposits that are not refunded. Businesses in the supply chain will no longer account for VAT on the deposit element of the price at each stage. Primary legislation is being introduced in Finance Bill 2026-27, with detailed accounting regulations to follow.
Still unanswered?
This is an independent summary and it will never be as authoritative as the scheme administrator. For anything that affects a financial decision, check Exchange for Change directly, or ask your trade body.
Put it to work on your own store
The calculator models your volumes against the published fee rates. The exemption checker tells you which route applies to your floor area.