Exchange for Change has announced a phased introduction of producer fees for the UK’s deposit return scheme (DRS), which will launch in October 2027.
The industry-led organisation delivering the DRS has revealed that the producer fee will be set at zero for the first 15 months of its operation to ‘minimise costs for businesses’.
As a consequence, producers are expected to not have to pay any fees until December 2028.
Producer fees are the charges that drinks producers will pay to help cover the costs of operating the scheme.
Based on current data, they are expected to be 2.3p per unit for PET containers, and 0.6p per unit for aluminium and steel containers.
This is projected to take effect from January 2029 to December 2032 and will be reviewed, validated and reconfirmed in May 2027, according to Exchange for Change.
Fees validation process
The body said it will continue to review the producer fee as further cost-forecasts, contractual pricing and operational data become available, and will reconfirm the fees following another validation process in May 2027.
They will then be reviewed annually once the scheme launches, and adjusted if required.
The fee structure and levels were set following a wide-ranging consultation that included responses from drinks industry producers and retailers of all sizes.
“Publishing the producer fees is another major milestone delivered as we move towards the launch of the DRS in October 2027, and will help businesses in their preparation and planning,” said Russell Davies, Exchange For Change chief executive.
“We recognise the breadth of work being undertaken by industry to prepare for launch in October 2027. Setting a zero producer fee for the first 15 months of the scheme is intended to support businesses in the early stages of the scheme.
‘As low as possible’
“As a not-for-profit organisation, we are committed to ensuring that producer fees always remain as low as possible, while supporting the long-term financial sustainability of the scheme.”
Travis Way, managing director at reverse-vending machine supplier at Reconomy-owned EcoVend, welcomed the news.
“For this scheme to achieve its intended purpose of reducing litter and transforming recycling rates of single-use containers, strong collaboration across the industry is crucial,” he said.
“Giving producers this additional breathing space should support a smoother implementation ahead of the October 2027 launch, and allow businesses to focus on putting the infrastructure and processes in place to encourage high levels of participation and deliver the return rates needed to support a more circular economy.”
In August, it emerged that DRS takeback rates had flatlined in some US states but surged in Connecticut.
