All in-scope containers will have 20p deposit included
EXCHANGE for Change has confirmed that a flat 20p deposit will be applied to all in-scope containers as part of the upcoming deposit return scheme (DRS).
The organisation in charge of delivering DRS for Scotland, England, Wales and Northern Ireland said that the 20p deposit will be applied to all single-use drink containers in the scheme consisting of PET plastic, steel and aluminium containers between 150ml and three litres.
This deposit will be added on to the containers from the point of purchase and will be fully refundable to consumers when the containers are returned.
This latest announcement marks another key step towards the delivery of the DRS across the UK as the firm aims to be ready for the go-live date in October 2027, just under 18 months away.
Exchange for Change said it made the decision on a 20p deposit following behavioural market research that tested consumer responses to deposit levels ranging from 10p to 30p.
The not-for-profit body said results found that deposit levels below 15p were unlikely to provide sufficient incentive for consumers to achieve its target return rate of 90% of containers within three years. Meanwhile, the 30p level was thought to result in disproportionate consumer cost exposure at the point of purchase.
The analysis also considered a variable deposit amount dependent on the container size or material, though it was found that other countries that run this as part of a DRS had consistently lower return rates on smaller containers.
This news follows the recent announcement around retailer exemptions as well as a new grant scheme to help support store owners to introduce return systems to their stores.
Russell Davies, chief executive at Exchange for Change, said: “The deposit value is a pivotal part of how the deposit return scheme will work in practice. That’s why we’ve engaged widely with industry, and 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.”
