UK DMO begins work to deliver Deposit Return Schemes

UK Deposit Management Organisation Ltd (UK DMO) has been announced as the operator of the new Deposit Return Schemes for single use plastic and metal drinks containers in England, Northern Ireland and Scotland.

The appointment has been made by the UK government and DAERA. In Scotland, Scottish Ministers have also decided that UK DMO should be designated as the DRS scheme administrator.

UK DMO is a business led, not for profit organisation created to deliver one of the most significant environmental infrastructure programmes in a generation across England, Northern Ireland and Scotland. Once launched, the Deposit Return Schemes will cut litter, boost recycling and reduce carbon emissions.

According to a report from The Countryside Charity, introducing DRS is expected to create up to 4000 jobs across the UK and will bring significant investment in infrastructure required to deliver the scheme including storage, logistics, and reprocessing.

UK DMO will now begin engaging with partners including the three governments, business, including drinks producers and retailers, consumer and environmental groups to design and operate a scheme which works for everyone. Producers, retailers and other interested parties are encouraged to visit the UK DMO website and register their interest in getting updates at https://ukdmo.co.uk

UK DMO is governed by a board that brings together voices from across the drinks and retail sector across all three nations. Members have been nominated by trade associations representing both large and small producers, major supermarkets, small convenience stores and wholesalers from across England, Northern Ireland and Scotland. Recruitment is also underway for an independent chair and non executive directors.

The board includes highly experienced figures from companies including Shepley Spring, Radnor Hills, Coca-Cola Europacific Partners, Heineken UK, Lidl, Tesco and Co-op. Many of the board members bring experience working in international markets where deposit return schemes are already in place.

UK DMO is responsible for designing and operating the systems that make the scheme work – from producer registration to logistics, finance, fraud prevention and public communications.

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 is fair, efficient and easy to use. Our work is already underway, and we will be working closely with governments, businesses of all sizes, environmental groups and consumer bodies to move forward as quickly as possible.’

UK DMO has been tasked by the three governments with delivering a Deposit Return Scheme to go live in October 2027. From that date, when people buy drinks containers made from PET plastic, steel and aluminium between 150 ml and three litres, they will pay a small deposit – which they will get back in full when they return the empty container for recycling.

Every year, 6.5 billion drinks containers are discarded across England, Scotland and Northern Ireland, contributing to 43% of all litter. The scheme aims to reduce this significantly while increasing recycling rates and reducing emissions.

British Soft Drinks Association director general, Gavin Partington, said: 

‘The British Soft Drinks Association welcomes the UK government’s appointment of UK Deposit Management Organisation Ltd as scheme administrator for its Deposit Return Scheme. This appointment marks a key milestone in realising the opportunities of a more circular economy, driving £1.13 billion of industry investment over the next three years and creating more than 4000 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.’

British Retail Consortium director of food and sustainability, Andrew Opie, said: ‘A well designed Deposit Return Scheme (DRS), 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 Deposit Management Organisation (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.’

Natural Source Waters Association general manager, Kinvara Carey, said: ‘We at the Natural Source Waters Association and our members have been working hard with UK and devolved governments, alongside other trade associations, drinks producers and retailers to get to this significant milestone. This announcement is great news for all involved. The DMO will have a clear focus on developing the most efficient and effective scheme to reduce littering and enable more drink containers to stay in the loop and be given another life.’

Association of Convenience Stores chief executive, James Lowman, said: ‘This is a major step towards the delivery of a Deposit Return Scheme for the UK. For the scheme to deliver a step change in recycling rates, local shops will need to play an integral part, offering a convenient network of return points both for local residents and people consuming drinks on the go.

‘We are looking forward to working with the newly formed Deposit Management Organisation to ensure that the scheme is operationally viable and attractive for retailers to take part in. With less than two and a half years before launch, it is vital that retailers can make informed choices about how to take part in the scheme, and we are committed to providing the information and advice they need.’

British Beer and Pub Association chief executive, Emma McClarkin, said:

‘Our sector is committed to sustainable packaging and a more circular economy and we are proud to have been involved in the development of an industry led, not for profit, organisation to run the Deposit Return Scheme. The ambition now is to deliver a complex scheme that requires very significant investment in challenging times with major changes to operations, in a way that is as cost effective as possible, while furthering environmental goals.’

The Federation of Wholesale Distributors and the Scottish Wholesale Association jointly said: ‘The wholesale sector welcomes the announcement of the appointment of the Deposit Return Scheme Deposit Management Organisation. This is a significant step forward in progressing a workable and effective DRS across the UK.

‘We are pleased the wholesale sector is represented on the DMO board, ensuring our voice and the interests of wholesalers operating across the UK, is heard at the highest level. Our engagement will be constructive and grounded in the operational knowledge and experience of our members.

‘It is vital that the unique challenges faced by wholesale businesses, as both distributors, producers and as retailers are recognised and addressed in a practical and proportionate manner by the DMO. Our priority remains ensuring a DRS that is both environmentally effective and commercially workable for our sector.’

Northern Ireland Food and Drink Association executive director, Michael Bell, said: ‘Food and drink manufacturers want to see the smoothest possible operation for consumers, for industry, and for delivering for the environment. In Northern Ireland we have seen how DRS has developed in the Republic of Ireland and we have been working with government and industry colleagues on the development of a similar scheme for the UK. We look forward to working with the Deposit Management Organisation as the delivery of the scheme progresses.’

Scottish Grocers’ Federation chief executive, Dr Pete Cheema, said: ‘SGF understands how important DRS will be for our members and for promoting sustainability across Scotland and the UK. That is why we worked closely with the Scottish Government and stakeholders throughout the development of the Scottish DRS.

‘Our engagement with DEFRA and the advisory council to establish the DMO has been positive, and we look forward to working closely with the new administration team in the coming months and years. Now that the DMO is in place, it provides an important opportunity for our members to address any concerns they have as early as possible and help build confidence in the scheme. Making sure that retailers have all the information they need about the options available to them.

‘SGF will also continue to meet with the DRS team in the Scottish Government, and our colleagues across the Scottish sector, to support the delivery of a fully fit for purpose scheme that works for all parts of the supply chain.’

Also commenting on this development, David Gudgeon, head of external affairs at Reconomy Connect, said: ‘The appointment of UK Deposit Management Organisation Ltd as scheme administrator for the government’s Deposit Return Scheme is an important milestone ahead of it coming into effect in October 2027. Once operational, the scheme has the potential to address the depletion of natural resources and help close the vast circularity gap through encouraging the return of empty containers which can be reused and recycled back into the economy. By working together, industry stakeholders can help ensure the scheme’s success which will reduce plastic pollution and carbon emissions while driving job creation and investment.’

Tom Giddings, executive director at aluminium packaging recycling organisation Alupro, shared: ‘The DMO appointment is a great next step towards the operational launch of DRS in the UK. DRS presents a great opportunity to capitalise on the progress industry has made so far in increasing beverage can recycling rates through programmes such as Every Can Counts, whilst securing a high quality stream of valuable aluminium material for recycling.

‘Alupro looks forward to working alongside the DMO to scale and deliver a UK focused DRS that helps to increase the capture and recycling rates of beverage packaging.’