U.K. Sets 20p Deposit for Drink Containers

The organization overseeing the United Kingdom’s planned deposit return scheme said on Monday that shoppers will pay a flat 20p deposit on eligible drinks containers when the program begins in England, Scotland and Northern Ireland in October 2027.

Exchange for Change said the charge will apply to single-use containers made of PET plastic, steel and aluminum, with sizes ranging from 150ml to 3 liters. Consumers will get the full 20p back when they return qualifying containers.

The decision follows consultations with industry groups and a review of deposit return systems in Europe and other markets. Exchange for Change said it examined different deposit levels and pricing models to find an approach that would be easy for consumers to understand while still giving producers and retailers a workable system.

The group said it chose to announce the deposit level now, with just under 18 months before launch, so businesses can begin preparing for the scheme. The timing matters for beverage makers, packaging suppliers, retailers and waste operators that will need to adjust labeling, collection systems and store operations before the rollout.

As part of its review, Exchange for Change tested consumer reactions to deposits from 10p to 30p. It said deposits below 15p were unlikely to achieve a target return rate of 90% of containers within three years. It also said a 30p deposit could create too much upfront cost for shoppers.

The organization also looked at variable deposits based on container size or material. It said those systems are used in some countries but can lead to lower return rates for smaller containers.

Russell Davies, chief executive of Exchange for Change, said the deposit amount is central to how the scheme will work in practice. He said the group had consulted widely with industry and studied how similar programs operate abroad before settling on what it considers the most proportionate amount for the United Kingdom.

The deposit return scheme is part of a broader effort by governments and industry to raise recycling rates and reduce litter from drinks packaging. For beer, soft drinks and bottled water companies, the flat fee will affect packaging design, pricing strategy and logistics across the supply chain ahead of the October 2027 start date.