The UK Deposit Return Scheme (DRS) is scheduled to launch on 1 October 2027 in England, Scotland and Northern Ireland. Retailers selling eligible drinks in plastic bottles and cans should start preparing now to understand their responsibilities and organise their return facilities.
For supermarkets, convenience stores, petrol stations and other retailers, preparation involves checking exemption eligibility, registering with Exchange for Change UK, selecting a return-point method and training employees before the scheme begins.
This guide explains how UK retailers can prepare for DRS, what to consider when choosing between manual returns and reverse vending machines, and how to plan the necessary budget and store facilities.
Quick Answer
To prepare for the Deposit Return Scheme UK, retailers should check whether each store must provide a return point, establish whether an exemption applies, complete the required registration, choose a manual or automated return method, plan the budget and prepare staff before 1 October 2027.
Key Takeaways
The UK DRS is scheduled to launch on 1 October 2027, making early preparation important for retailers.
Businesses selling eligible drinks need to understand deposit collection and refund requirements.
Some smaller urban premises may qualify for automatic exemptions, while other stores may be eligible to apply for one.
Retailers can assess manual return points and reverse vending machines according to their operational needs.
Store size, return volumes, staffing, equipment costs and available space should influence the decision.
Planning ahead can help retailers organise installation, staff training and container collection before launch.
What Does the UK Deposit Return Scheme Mean for Retailers?
The Deposit Return Scheme introduces a refundable deposit on eligible drinks containers. Customers pay the deposit when buying an eligible drink and reclaim it when returning the empty container through an approved return process.
For retailers, the scheme brings several changes to normal store operations.
Charging deposits at checkout: Retailers selling drinks covered by the scheme need to apply the relevant deposit at the point of sale. Till systems, receipts and staff procedures should be prepared for the applicable requirements.
Accepting returned containers: Grocery stores, supermarkets, convenience stores and other retailers may need to provide a return point unless an exemption applies. Depending on the circumstances, this can be a manual counter or an automated reverse vending machine.
Processing refunds and storing containers: Retailers must understand the applicable refund arrangements and plan how returned containers will be stored before collection.
Providing customer information: Clear signage and trained staff can help customers understand where to return containers and how the refund process works.
Exchange for Change UK is the Deposit Management Organisation for the scheme. Retailers should check its latest guidance for registration, exemption applications and collection arrangements. Online retailers should also review the requirements that apply to distance sales.
For an overview of how the scheme operates, read the UK Deposit Return Scheme.
Does Your Store Need to Host a DRS Return Point?
Not every retail premises will have the same obligations. Retailers should review their store characteristics and confirm the applicable requirements before deciding how to manage returns.
1. Check Whether Your Store Is Automatically Exempt
Certain urban retail premises with a retail floor area of 100 m² or less may qualify for an automatic exemption from operating a return point.
Retailers should confirm that their premises meet the applicable criteria. Even where an exemption applies, a business may wish to offer a voluntary return point if it suits its customers and operating model.
2. Check Whether Your Store Can Apply for an Exemption
Some larger or rural stores may be able to apply for an exemption based on the proximity of another return point or circumstances relating to the premises.
Relevant considerations can include the store's location, layout, size, design and construction. Businesses should check the official eligibility rules, prepare supporting evidence and submit applications according to the required process.
Where an exemption has a limited duration, retailers should keep records of expiry dates and renewal requirements. Stores that are not hosting a return point should also check whether they must display information directing customers to another location.
3. Consider Whether a Voluntary Return Point Is Suitable
Some businesses that are not required to operate a return point may still decide to provide one voluntarily, subject to the applicable scheme arrangements.
Retailers should consider expected customer demand, available floor space, staffing requirements and the cost of managing returned containers before making this decision.
How to Prepare for DRS in 2027: A Seven-Step Retailer Checklist
A structured checklist can help retailers organise their preparation and make sure important tasks are not overlooked.
Step 1: Audit Every Store
Create a record of each retail location, including its floor area, whether it is urban or rural, the eligible drinks it sells and its busiest trading periods.
This information can help retailers identify stores that may need return points and estimate the likely volume of containers that customers will return.
Step 2: Review Exemption Eligibility Early
Identify stores that may qualify for automatic exemptions and assess whether other locations could meet the criteria for an application.
Gather the necessary supporting information, such as floor plans, photographs and details about nearby return points. Confirm the relevant conditions and deadlines before submitting an application.
Step 3: Register With Exchange for Change UK
Identify who will manage DRS registration and compliance for the business. Retailers should confirm the registration requirements that apply to their circumstances and complete the necessary steps within the required timeframe.
For businesses with multiple stores, assigning one person to manage registration details, applications and deadlines can make the process easier to coordinate.
Step 4: Choose a Return-Point Method
Assess whether each store would be better suited to a manual return point or a reverse vending machine.
Manual returns may be practical for some lower-volume stores, while automated equipment may be worth considering at locations with higher customer activity and container-return volumes.
The choice should reflect the individual store's requirements rather than assuming the same solution will suit every location.
Step 5: Build a Realistic Budget
Prepare a budget that includes equipment, installation, staff time, storage, maintenance and any necessary changes to the premises.
Retailers should also account for the applicable handling-fee arrangements when assessing the cost of operating a return point.
For more information about equipment pricing, read the reverse vending machine cost. The guide can help retailers understand the factors that affect equipment investment and ongoing expenses.
Step 6: Plan the Available Space
A return point should be accessible to customers without creating unnecessary disruption to normal store operations.
Assess the space required for customer queues, returned-container storage and collection access. For an automated machine, also consider its footprint, power supply and connectivity requirements.
A site inspection before purchasing equipment can help retailers identify practical challenges and avoid unexpected installation costs.
Step 7: Train Staff and Inform Customers
Prepare employees to explain the return process, answer customer questions and follow the appropriate refund procedures.
Retailers should also review till settings, deposit information, signage and container-handling arrangements. Testing these processes before launch can help identify problems and give staff time to become familiar with the new procedures.
A Suggested Timeline for Retailer Preparation
Retailers can divide their preparation into stages to make progress easier to manage.
PeriodRecommended preparationBy December 2026Complete store audits, identify potential exemptions and assign registration responsibilitiesJanuary–March 2027Progress exemption applications and choose a return-point method for each storeApril–June 2027Approve budgets, complete site inspections and arrange equipment ordersJuly–August 2027Prepare installations, update till processes and train staffSeptember 2027Test the return process, display relevant signage and confirm collection arrangements
These are suggested planning milestones, not official deadlines. Retailers should check the latest scheme guidance to confirm the requirements and timings that apply to their business.
Manual Return Point or Reverse Vending Machine?
Retailers need to decide how they will accept eligible containers and manage customer returns. Two approaches to consider are manual collection and automated reverse vending machines.
A manual return point involves employees receiving containers, checking them and following the appropriate refund procedure. A reverse vending machine automates parts of the process, allowing customers to return accepted containers through a dedicated machine.
ConsiderationManual return pointReverse vending machineSuitable locationsSome lower-volume stores with suitable counter spaceBusy stores and locations with regular return volumesStaff involvementEmployees handle individual containersStaff manage collection, maintenance and exceptionsCustomer queuesReturns may add work at the counterCustomers can use a separate return facilityCounting and recordsDepends on the manual processAutomated counting and records, depending on the systemOperating costsStaff time and storageEquipment, installation, maintenance and storageSpace requirementsCounter space and container storageDedicated machine space and storage
The most suitable approach depends on each store's circumstances. A multi-store retailer may decide to use automated machines at higher-volume locations and manual return points at smaller sites.
To understand the technology in more detail, read how reverse vending machines work.
What Will DRS Compliance Cost, and What Can Retailers Earn Back?
Preparing for DRS involves several potential costs. Retailers should consider equipment, installation, staffing, container storage, maintenance and the resources required to manage the return process.
The total cost will depend on the store's size, return volumes, selected equipment and operational arrangements.
Retailers operating eligible return points should also review the applicable handling fees. These arrangements can affect the financial calculation, so businesses should use current scheme information rather than assume that the same fee applies to every return method.
When assessing a reverse vending machine, retailers should compare the initial investment with ongoing operating expenses and the expected operational benefits.
For a more detailed assessment, read the reverse vending machine ROI . It explains how to consider equipment investment, operating costs, staff time and other measurable benefits when evaluating a potential return on investment.
How ENDLOS RVM UK Helps Retailers Get DRS-Ready
ENDLOS provides reverse vending machine solutions for businesses preparing their recycling and container-collection facilities.
The Earth Go, Earth Pro and Earth X range offers options for different store environments and operational requirements.
When evaluating a suitable machine, retailers should consider:
Site inspection and installation: Assessing the available space and requirements before equipment is installed.
Machine capacity: Matching the solution to expected container-return volumes.
Software and tracking: Understanding the available reporting and container-collection capabilities.
Maintenance and support: Reviewing the service arrangements needed to keep equipment operating.
Budget and payment options: Assessing the overall investment and available purchasing arrangements.
ENDLOS combines reverse vending machine hardware with software designed to support container collection and tracking. The appropriate configuration depends on the retailer's location, expected demand and operational needs.
Before purchasing any equipment, businesses should confirm that it meets the relevant scheme requirements and is suitable for the containers they intend to accept.
Conclusion: Start Your DRS Preparation Now
The UK Deposit Return Scheme is scheduled to begin on 1 October 2027. Retailers should use the preparation period to review each store, establish whether a return point is required, check exemption eligibility and complete the necessary registration steps.
The next priorities are to choose an appropriate return method, prepare the budget, assess the available space and train employees before launch.
Planning these tasks in advance can help businesses make informed decisions and reduce the risk of last-minute operational problems.
Retailers considering automated collection can explore suitable equipment and arrange a site assessment with ENDLOS to discuss the requirements of their stores.
Frequently Asked Questions
When does the UK Deposit Return Scheme start?
The scheme is scheduled to launch on 1 October 2027 in England, Scotland and Northern Ireland. Retailers should monitor official guidance for updates to the implementation requirements.
Which drink containers are covered by DRS in the UK?
The scheme covers eligible drink containers within its defined scope. Retailers should check the latest official guidance to confirm the materials, products and container sizes covered.
How much is the deposit under the UK DRS?
Retailers should confirm the applicable deposit amount through current official scheme guidance and ensure their till and refund procedures follow the requirements in force.
What is a DRS return point?
A DRS return point is a location where customers can return eligible empty drink containers to reclaim their deposits. Depending on the arrangements, the return process may be manual or automated.
Do all UK retailers have to host a return point?
No. Requirements depend on the type of premises, the applicable scheme rules and any relevant exemptions. Retailers should check the requirements for each location.
Do I need a reverse vending machine for DRS compliance?
Not every retailer necessarily needs an automated machine. Manual returns may suit some locations, while reverse vending machines may be appropriate for stores expecting larger return volumes.
How long does a DRS return-point exemption last?
The duration and renewal requirements depend on the applicable exemption rules. Retailers should confirm the conditions with the scheme operator and keep records of relevant deadlines.