The government has confirmed it has appointed an industry coalition called the UK Deposit Management Organisation (UK DMO) to run the £1.13bn deposit return scheme, which is due to launch in October 2027.
Bosses from across the industry said it was vital for the DMO and the government to work together to ensure the “smooth running” of the “landmark” new regime, which covers single-use plastic and metal drinks containers in England, Northern Ireland and Scotland.
The appointment was made by the UK government and Defra. Ministers in Scotland, where a pioneering DRS collapsed in 2023, have also decided that the UK DMO should be designated as the DRS administrator.
The DMO is a not-for-profit organisation created to deliver what was billed as one of the most significant environmental infrastructure programmes in a generation across England, Northern Ireland and Scotland – and one that has already proved controversial.
The Grocer revealed last month that Defra was poised to give the go-ahead for the body, which is headed by senior executives from companies including Tesco, Coca-Cola, Heineken and Co-op.
Defra had set the end of April as the deadline for appointing the DMO, but the announcement was delayed because of the local elections.
Major doubts have been raised over the future of DRS by the Welsh government’s shock decision to pull out of a UK-wide scheme, in November.
But today different sectors rallied, at least publicly, behind the scheme and its potential 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 significant investment in infrastructure required to deliver the scheme including storage, logistics, and reprocessing.
The DMO’s responsibilities will include setting up and operating the RD in line with regulations in England, Northern Ireland and Scotland.
Its tasks include registering drinks producers and overseeing their compliance, managing the flow of deposits including collections from consumers, reimbursement, and producer fees, co-ordinating the return point network, and sorting and onward recycling of returned containers.
It will also be charged with developing fraud prevention and anti-counterfeit measures, including approved labelling and barcoding.
A scheme for all
UK DMO said it would now begin engaging with governments, businesses – including drinks producers and retailers – consumers and environmental groups to design and operate a scheme that “works for everyone”.
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.”
BSDA director general Gavin Partington said: “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.”
BRC director of food and sustainability Andrew Opie added: “A well-designed deposit return scheme, 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 DMO to oversee the DRS. Retailers and the BRC have been central to the DMO’s development, committing significant funding, time and resource 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.”
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