Fed Monitors the Development of DRS

30/12/2025

The Fed has been busy working to assist the development of the Deposit Return Scheme (DRS) for recycling scheme – which is due to launch in October 2027 with the aim of boosting recycling rates of bottles made of Steel, Aluminium and Plastic (PET) and the Fed will be sharing more information in the New Year about how they might start preparing for the scheme’s launch.

There is plenty still to be decided about how the scheme will be administered, but these are the main points to be aware of at the moment:

• Many of the logistical details of DRS still need to be finalised but customers looks set to be charged an additional 20p for buying a bottle which can then be reclaimed as an incentive for customers to return their bottles for recycling.
• Similar schemes are in place in a range of countries including Norway, Germany,  The Netherlands and Denmark.
• Some Fed already have first-hand experience of DRS given that it is already in place in the Republic of Ireland – and a delegation of the Fed’s senior leadership visited the Republic of Ireland in March 2025 to find out how the scheme was being administered in practice. According to some estimates, DRS in Ireland has led to an increase in recycling from 49% to over 90%.
• In the UK, The Fed currently serves on the advisory board of the Deposit Management Organisation (DMO) which will administer the scheme – the DMO is a partnership involving Government officials and a range of business representatives, as well as other stakeholders.
• Bottles can be returned to businesses at a return receptacle like a manual box or in what is called a Reverse-Vending Machine (RVM) which compresses larger bottles and retailers will receive a small fee of a few pennies which could add up to a large value (in the Republic of Ireland it is  2.6 cents a container) or Reverse Vending Machine (RVM) collection (around 2.2 cents a container). The fee for the UK is set to be decided in 2026 and the Fed will be calling for the introduction of a high rate which is fair to our members.
• Not all Fed members will necessarily need to participate as they can apply for an exemption if their property has 100 square metres in size.
• However, retailers in the Republic of Ireland have commented that they have opted to instal a return location or RVM – even if they qualify for an exemption – because many customers value the convenience of returning bottles to small shops, rather than big supermarkets, and were losing out on footfall.
• Fed members will be aware that Scotland had planned to roll-out DRS in 2024 – but this was put on hold and now plans to join England and Northern Ireland (though Wales looks likely to introduce its own DRS scheme).
• Last year’s National President – Mo Razzaq – has been very supportive of DRS and conducted a trial showing how it could work, last winter (2024-2025).
• The Fed will be sharing more information about DRS in the New Year, but if you have any questions at this stage, please get in touch at douglas.oliver@nfrn.org.uk