Government appoints operator to run DRS schemes

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The UK DMO is a not-for-profit organisation appointed by the UK Government to develop and ultimately deliver the DRS. While the government determines the scheme’s timescales and container inclusion criteria, the DMO will be responsible for creating and managing the necessary infrastructure in line with regulations across England, Northern Ireland, and Scotland.

Its operational responsibilities include registering drinks producers and overseeing their compliance with scheme obligations, while managing the financial ecosystem of the scheme - including deposit collection from consumers, reimbursement processes, and producer fees.

It will coordinate the return point network, handling arrangements with retailers and operators to ensure convenient access for consumers. The organisation will also develop fraud prevention and anti-counterfeit measures, including approved labelling and barcoding systems.

The UK DMO will monitor its performance against statutory targets, including container return rates, and report annually to the government on progress.

In a joint statement, the UK DMO board commented: “DRS is an opportunity to deliver a transformational step forward in the circular economy in the UK and the appointment of the DMO is a major milestone in that journey.

“We don't underestimate the scale of the challenge, but our aim is simple – to build a system that's fair, efficient and easy to use. Our work is already underway, and we'll be working closely with governments, businesses of all sizes, environmental groups and consumer bodies to move forward as quickly as possible."

The Scottish Government has confirmed that the UK DMO will also serve as its designated scheme administrator, creating a unified approach across the three nations.

Claire Shrewsbury, Director of Insights and Innovation at the Waste and Resources Action Programme (WRAP), emphasised the importance of proper implementation: “It is critical the DMO convenes the right parties to deliver an effective and engaging DRS system that people will want to use. A significant behaviour change campaign based on the insights around existing recycling engagement and from other countries must support its introduction."

Trade association nominees form foundation of scheme governance

The UK DMO has stated that its board has been structured to represent organisations directly impacted by the scheme. Board members have been nominated by trade associations representing businesses across the drinks and retail sectors.

Current board members include representatives from drinks producers Shepley Spring, Radnor Hills, Coca-Cola Europacific Partners and Heineken UK, alongside retail representatives from Lidl, Tesco, and Co-op.

Andrew Opie, British Retail Consortium Director of Food and Sustainability commented: “A well-designed Deposit Return Scheme (DRS), with retail at its heart, will be an important contribution to delivering a circular economy in the UK.

“Retailers and the BRC have been central to the DMO’s development, committing significant funding, time and resource to get to this point and we are pleased that our voice will continue to be heard as the initiative progresses.”

Dr Pete Cheema OBE, Scottish Grocers’ Federation Chief Executive, added: “Our engagement with DEFRA and the Advisory Council to establish the DMO has been positive, and we look forward to working closely with the new administration team in the coming months and years. Now that the DMO is in place, it provides an important opportunity for our members to address any concerns they have as early as possible and help build confidence in the scheme.”

To ensure stakeholder input, the board is supported by an advisory group that will incorporate a wider range of perspectives into the DMO’s work. The organisation is currently recruiting for an independent chair and non-executive director to complete its governance structure.

Sarah Horner, UK And Ireland Director at Reloop, welcomed the appointment: “We are delighted that the vital Deposit Return Scheme has reached an important milestone with the appointment of the Deposit Management Organisation, moving us one step closer to achieving the environmental benefits and circular economy opportunities offered by DRS.

“There is a strong mandate behind the scheme, with around 70 per cent of the public backing it and with continued support from politicians across the political spectrum. The Deposit Return Scheme will play an important role in reducing litter in our rivers, seas, streets and trails by incentivising the return of drinks containers."

David Gudgeon, Head of External Affairs at Reconomy Connect, a brand by Reconomy, added: "The appointment of UK Deposit Management Organisation Ltd as scheme administrator for the government’s Deposit Return Scheme is an important milestone ahead of it coming into effect in October 2027. Once operational, the scheme has the potential to address the depletion of natural resources and help close the vast circularity gap through encouraging the return of empty containers which can be re-used and recycled back into the economy."

The current directors of the DMO Board are listed below:

Industry reactions

The scheme is expected to deliver significant environmental and economic advantages. According to Biffa's Head of Partnerships, Carla Brian, "It is estimated DRS will save 263,600 tonnes of CO2e per year – about the same amount of carbon produced by 35,000 UK homes each year."

Brian also highlighted the economic potential: "DRS will need a national network of counting and sorting centres, reverse vending machines, logistics and collection systems, and digital infrastructure. This demand will create opportunities throughout the UK including an estimated 4,000 jobs and is projected to generate a net benefit of £554.6million to the UK economy per year."

Alice Rackley, CEO of Polytag, described the appointment as "a positive and much-needed step forward for the UK's Deposit Return Scheme." She noted: "With the announcement of a board made up of digital-focussed organisations such as Co-op, Tesco and Coca-Cola, it's clear we are on the path towards a flexible, accessible model that can include a digital component. These organisations have already demonstrated a strong interest in digital solutions."

However, some organisations have raised questions about implementation details. The National Association of Waste Disposal Officers (NAWDO) noted there remain "many unanswered questions on how local authorities will interact with the DRS, how they will be funded for drinks containers they continue to manage, what will be done to address a loss of local authority income from the sale of collected recyclate, and how any negative street cleansing impacts caused by 'bin raiding' by scavengers will be addressed."