Consumers will pay a flat rate 20p deposit for all containers in scope of the deposit return scheme which launches next year, it was confirmed today.
Exchange for Change, the not-for-profit, industry-led organisation running the scheme across England, Scotland and Northern Ireland, said the fee would be applied on all in-scope containers when the scheme launches in October 2027.
The move, which is described as a “major milestone”, follows a consultation with industry and economic analysts and studies of deposit levels in DRS systems across the world.
The body said 20p was seen as a “sufficient behavioural incentive” for consumers to return containers, was proportionate and simple to understand, and was workable for producers and retailers.
The fee will apply to all single-use drinks in PET plastic, steel and aluminium containers between 150ml and three litres at the point of purchase, and will be fully refundable to consumers when the containers are returned.
The 20p deposit is the same as that announced for the the ill-fated Scottish scheme by Roseanna Cunningham, the Scottish environment secretary, in May 2019.
Exchange for Change used behavioural market research to test consumer response to deposit levels ranging from 10p to 30p.
It said it showed that deposit levels below 15p were unlikely to provide sufficient incentive to help achieve target return rates of 90% of containers within three years, while 30p could result in a disproportionate consumer cost exposure at the point of purchase.
“The deposit value is a pivotal part of how the deposit return scheme will work in practice” said Exchange for Change CEO Russell Davies. “That’s why we’ve engaged widely with industry, undertaken extensive market research and in-depth analysis on how schemes work in other countries.
“This work has identified that a flat 20p deposit is the most proportionate and sustainable amount for the UK. Confirming this now, with just under 18 months to go until the DRS is live, will help producers and retailers with their planning and preparation for the scheme, and we will continue to support them closely throughout this process.”
Plans for the DRS in Wales to launch in October next year were plunged into doubt earlier this month when the Welsh government rejected Exchange for Change’s bid to run the scheme, even though it was the only bid on the table.
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