Scottish deposit return scheme finalised as Wales continues consultation

Under the regulations, 1 October 2027 will be the full implementation date for Scotland’s DRS scheme, bringing it in line with England and Northern Ireland, where similar regulations were enacted earlier this year and are also expected to take effect in October 2027.  

The DRS will require consumers of single-use drinks containers in Scotland to pay a small deposit that can later be refunded in exchange for returning empty plastic bottles and metal cans. The containers can then be reused or recycled.  

As with England and Northern Ireland, the premise behind Scotland’s DRS is to improve recycling rates, reduce litter and help society tackle climate change. Like the other two nations, single-use drinks containers made of glass will not form part of Scotland’s DRS. 

The Deposit and Return Scheme for Scotland Regulations 2020 were originally approved by the Scottish Parliament in May 2020 and were due to take effect on 16 August 2023. However, in April 2023, then first minister Humza Yousaf said the implementation date would be pushed back until March 2024, citing concerns from business and the lack of a UK government decision on excluding the DRS from the scope of the UK Internal Market Act (UKIMA) as a contributing factor to the delay.  

Following discussions on a UKIMA exclusion for its DRS, the Scottish government confirmed on 7 June 2023 its intention to align with the introduction of deposit return schemes in other parts of the UK.  

In April 2024, in a joint policy statement the Scottish government alongside the previous UK (Conservative) government, Welsh government and the Department of Agriculture, Environment and Rural Affairs (DAERA) in Northern Ireland, pledged to work together to introduce parallel schemes across the UK in October 2027. 

However, in November 2024, the Welsh government announced it would not proceed with the four-nation joint DRS process. The Welsh government had wanted to include glass in its scheme, which would have required an exclusion under the UKIMA. It is currently undertaking a formal consultation on its proposed scheme and plans to publish its findings and next steps in spring 2026.  

Commenting on the new draft regulations in Scotland, regulatory expert Zoe Betts of Pinsent Masons said: “Alignment with England and Northern Ireland will be a relief to those selling in Scotland. However, the challenge of a different scheme in Wales remains.” 

Under the new Scottish regulations, a new scheme administrator (SA), UK Deposit Management Organisation Limited, has been appointed to oversee the DRS in Scotland. The SA will be subject to obligations, including operating in accordance with its approved operational plan, collecting empty scheme packaging from return points and refunding deposits and meeting collection targets. 

Hannah Burton of Pinsent Masons said both producers and retailers would need to be mindful of the SA’s core functions. “It is to be responsible for deciding on the deposit level, which may be a variable or flat rate depending on the size of the container, and determining the scheme logo to appear on all scheme articles,” she said. “It will also be responsible for registering producers, groceries retailers – both those operating return points and those which apply for an exemption – voluntary return points and takeback service providers,” she said.  

Producers wishing to sell in Scotland must register with the SA by 1 October 2027. All registered producers will have new obligations to pay the SA any producer registration fees which the SA may charge and the amount of the deposit for each scheme article that they market, offer for sale or sell in Scotland. Producers will no longer be required to pay an annual registration payment. Collection targets will also be imposed on the SA, rather than on producers. The scheme is targeting a 70% return rate of eligible drinks containers by the end of 2028 – the first full year of operation. 

Retailers will only be permitted to sell scheme articles which are marked with a label and a scheme code indicating that the drink falls within the scope of the DRS. However, while the previous rules required all retailers of scheme articles unless exempt to act as return points, groceries retailers – in effect supermarkets, convenience stores and newsagents – whose premises are less than 100m² and in an urban area will be automatically exempt from this requirement

A groceries retailer otherwise in scope can apply for an exemption from operating a return point if there is an alternative return point within reasonable proximity, or if the location, layout, size, design or construction of the retail premises does not permit, or cannot reasonably be altered to permit, the operation of a return point. 

Retailers and groceries retailers who sell scheme articles online will no longer be required to provide a takeback service, but any person can apply to be registered as a takeback service provider.

The sizes of scheme articles within the scope of the DRS has changed. Only those between 150ml and 3 litres will be included. The existing legislation included containers between 100ml and 3 litres.

Producers of low-volume drink products may elect to notify the SA if they have product lines that will not exceed more than 5,000 units placed on the market across the UK, or 6,250 in the first 15 months of operation. This is a change from the existing legislation which specified a threshold of 5,000 units placed on the market only in Scotland.  

In keeping with the Scottish government’s previous policy, these low-volume drink products will not be included in the definition of “scheme articles” and so exempt from many of the requirements of the legislation.

However, producers of low-volume drink products will still be required to register with the SA and report the number of containers placed on the market for each product. They must also alert customers that the low volume drink products fall outside the DRS and cannot be returned in exchange for a refunded deposit.

This exemption has been incorporated to help support producers with very specialist or low-volume sales products, such as products that are sold at farm shops or markets, who might otherwise find the DRS requirements disproportionately burdensome to their business.