Preparing for the UK Deposit Return Scheme: What Businesses Should be Doing Now (Not in 2027)

The UK DRS is set to reduce plastic waste from entering our environment. Providing the infrastructure for a circular economy.

The UK’s Deposit Return Scheme (DRS) is rolling out on the 1^st of October 2027, and whilst that date may seem distant, it introduces changes that businesses will need to make. The upcoming legislation isn’t just a recycling policy, but represents a shift in logistics, infrastructure, and material tracking through the economy.

This isn’t something to react to at the last minute. Preparation isn’t about ticking boxes; it’s about implementing a system smoothly to ensure it is resilient and works for everyone. The DRS is a shift towards circular systems built on accountability and data transparency; a change that businesses need to start planning for now.

Key Takeaway:

• The UK DRS is not just a recycling policy; it represents a shift towards a circular economy.

• Early planning, audits, and reviews give businesses time to adapt smoothly rather than under pressure in 2027.

• Digital infrastructure will be essential for efficient tracking, reporting, and scaling - helping businesses remain compliant.

How Will the Deposit Return Scheme Work?

The UK’s Deposit Return Scheme is being rolled out under the Deposit Management Organisation (DMO), which has recently announced the identity of the DRS as ‘Exchange for Change’. The organisation is responsible for managing the scheme and is rolling out information and soon-to-be guidance for businesses to ensure smooth operations ahead of the 1^st of October 2027.

The DMO is sending out how to use the new logo on packaging and systems in the upcoming months | Source: UK DMO

Under the scheme, consumers pay a small deposit when purchasing a drink under the DRS, which is refunded upon a successful return to an approved collection point. Whereas businesses that produce or sell drinks across England and Northern Ireland, with Scotland and Wales providing separate guidance.

The scheme will cover a range of drink containers, including PET plastic bottles and steel or aluminium cans, with a capacity between 150 millilitres and 3 litres. By understanding how the scheme works, businesses can start preparing and allow enough time to implement a system that works for them.

We’ve previously discussed the doors that a nationwide DRS opens for a circular economy; check it out here.

What will the UK DRS change for Operators?

The UK Deposit Return Scheme will bring a significant shift in responsibilities for businesses that produce or sell eligible drink containers. According to the UK government, DRS introduces new operational requirements that many organisations will need to build into their standard processes.

Responsibility	What It Means
Registration	Businesses must register with the scheme administrator before selling drink containers.
Return Points	Retailers must host consumer return points (unless exempt).
Deposits & Reconcilliation	Producers and retailers must charge deposits, refund consumers and reconcile payments accurately.
Storage & Handling	Returned containers must be stored appropriately until collected by logistics partners.
Oversight & Guidance	Exchange for Change manages compliance, guidance and operational infrastructure for the scheme. Ensure you stay-up-to-date with them to find out the latest updates.

The UK DRS will affect core operational functions, such as customer service, logistics, financial systems, and data reporting. For many, this means reviewing existing processes early and considering how to integrate new workflows into day-to-day activities.

Why Waiting Until 2027 is Risky

Although the UK Deposit Return Scheme won’t launch until October 2027, businesses that delay preparation may face several avoidable challenges. Planning early gives operators the time to integrate new processes smoothly, rather than responding reactively at the last minute.

Infrastructure is a key consideration: reverse vending machines, collection points, and storage solutions will be in high demand as the launch approaches. Early investment and planning can help avoid potential shortages and ensure that systems are installed and tested well in advance.

Staff readiness is another important factor. Introducing new workflows for handling returns, managing deposits, and reporting data requires training and practical embedding.

Early preparation allows businesses to pilot and optimise their systems, identifying potential bottlenecks or inefficiencies before the scheme goes live. Waiting for 2027 risks rush implementation, higher costs, and operational disruption. However, planning ahead positions businesses for a smoother transition and better long-term results.

What Businesses Should Do Now

While the DMO (operating as Exchange for Change) will be releasing more detailed guidance in the coming months, there are steps businesses can already take.

1. Start thinking about current operations: Consider how your current workflows and operations might be affected by the scheme.

2. Conduct and audit: Review your premises, storage capacity and processes for selling drinks ready for when detailed guidance is released.

3. Explore potential infrastructure needs: Understand what is out there, and how it might work for your businesses.

4. Stay-up-to-date with the latest updates from the DMO to ensure you are aware of changes that will impact you.

   
   

Taking these steps allows businesses to approach the DRS strategically rather than reactively. Even without full guidance yet, early planning builds confidence, reduces risk, and positions operators to implement systems efficiently once more details are published.

Why Digital Infrastructure Matters

Digital infrastructure will be key in managing the UK Deposit Return Scheme. From tracking deposits and verifying returns to issuing refunds, technology will enable smooth operations when the right systems are in place.

Integrating deposit return systems with existing point-of-sale and inventory software will help businesses manage returns efficiently while allowing consumers to receive refunds quickly. Tracking and reporting technology can highlight process gaps, enabling timely adjustments and system improvements.

Preparing digitally now not only ensures compliance but also positions businesses to scale efficiently and gain insights that support wider sustainability goals.

Circulayo technology provides a circular system for reusable packaging and can be scaled depending on business requirements.

With the UK Deposit Return Scheme approaching, having a partner like Circulayo can help implement the right technology that scales with your business needs, streamline operations and be ready for 2027.

The UK Deposit Return Scheme is a major shift for businesses, affecting operations, logistics, and data management. Waiting until 2027 to prepare risks disruption and missed opportunities to optimise workflows.

Starting early allows businesses to manage returns efficiently and gain insights into material flows, supporting circular economy goals.

Circulayo partners with businesses to simplify DRS readiness, providing technology and operational support to ensure smooth implementation. Get in touch today to start preparing for 2027 and turn DRS compliance into a strategic advantage.