Preparing for the Deposit Return Scheme in England

9th Sep 2026

Only one year remains for English retailers to prepare ahead of the launch of the Deposit Return Scheme on 1st October 2027. This guide focuses on the practical steps that retailers can take now so they’re in the best possible position to benefit from the opportunities presented by the DRS.

What is the Deposit Return Scheme (DRS)?

England's Deposit Return Scheme (DRS) encourages shoppers to recycle by charging a small refundable deposit on eligible single-use PET plastic drinks bottles, steel cans and aluminium cans. The deposit paid is reclaimed by the person who returns the container to a participating outlet, which may or not be the same person who bought it originally.

How will the Deposit Return Scheme affect retailers in England?

Grocery retailers are likely to feel the greatest impact from the launch of scheme however, those offering bottled or canned drinks as add-on purchases will also need to be mindful of the changes that are coming. Afterall, eligible cans and bottles don't have to be returned to the same retailer that sold them which makes the decision about how your business participates in the scheme an important one in terms driving potential extra footfall and sales to your store.

Will the Deposit Return Scheme influence shoppers in England?

Shoppers in England feeling the pinch due to the cost-of-living crisis are likely to be attracted by the prospect of receiving money-off coupons by actively participating in the DRS scheme. Already familiar with collecting cans and bottles in their household recycling bins, the switch to recycling outside the home with an added financial incentive is likely to make the scheme popular. As a result, many predict that the scheme will have a huge impact on how and more importantly where consumers choose to shop.

Reverse Vending Machines: Key Retailer Considerations

When considering installing a self-service reverse vending machine in a convenience store, hospitality outlet or petrol forecourt, retailers must evaluate several commercial, physical and operational factors before the scheme goes live next October.

1. Physical Considerations

Floor space

Retailers considering a standalone reverse vending machine need to calculate if they have enough space on their shopfloor for the equipment. Prime shopfloor space is already in high demand due to the rollout of coffee machines and parcel drop-off points so businesses need to assess if adding a reverse vending machine to the mix could create additional footfall. For safety, you will need to find a level surface with an electrical supply nearby that doesn't block emergency exits. Those with limited space or low single-serve beverage sales are likely to opt for a manual over-the-counter scan and return system instead.

Provisions for waste storage and segregation

Whilst most reverse vending machines feature an integrated waste compaction system, the returned cans and bottles will still take up space at your premises ahead of being collected and transported to a recycling facility. In the Irish deposit return scheme, waste storage is at the discretion of the retailer so England's retailers are likely to find themselves in the same boat. As part of their duty of care, businesses in England must store commercial waste securely at their premises so you may need to review your recycling arrangements to accommodate the additional waste you'll receive from customers returning their containers to you. Retailers in England with little or no free space in their warehouse may need to re-asses how they store other types of shop waste (such as cardboard) to make more space for cans and bottles.

2. Commercial Considerations

Machine costs and availability

Businesses considering a reverse machine at their premises should start contacting reputable suppliers of recycling equipment now to register their interest. Select your supplier carefully, those with experience in supplying waste balers and compactors to businesses will already have the infrastructure in place to deliver and service the equipment competently. Those wishing to install a reverse vending machine but don't have capital required or want to put it to the test before deciding should consider hire as an alternative.

Strategic Equipment Positioning

Installing a reverse vending machine near your impulse-buys maximises the chance that a customer will buy something from your store after receiving their voucher. However, queues of people waiting to return containers may block or deter regular customers with bigger basket spends. Putting a machine at the back of your shop forces customers to carry their used containers around your store but this may impact on the amount of browsing they do (and the goods they can pick up). Every option has a trade-off and the ideal spot for a DRS machine will vary depending on the layout of your store which is why booking a free shop survey is recommended.

Manual vs. Automatic Systems

Retailers can add a DRS take-back service by either implementing a manual collection system (an over-the-counter service) or installing an automatic collection system known as Reverse Vending Machine (RVM). Retail outlets should review their sales data of single-serve drinks now to work out if their workers could manage this task at the tills or if you'll need to take the plunge and choose an automatic RVM system. Unfortunately, nobody can accurately forecast how many containers you'll get returned because it'll depend on your customer demographics and local competition. But as a guide, the rate of recycling of this type of container has jumped to over 90% in Ireland according to organisers Re-Turn.

3. Operational Considerations

RVM maintenance and repairs

Even though it is a self-service kiosk, your shopfloor team still need to complete tasks to keep it working properly such as:

Emptying the machine of cans and bottles when it is full
Replacing the receipt rolls
Moving bagged waste to a secure location for storage

If you encounter a problem and need in-person support, a RVM supplier with a nationwide team of technicians is likely to deliver the fastest response times. You’ll also need to consider who can help you with RVM servicing and routine preventative maintenance. When selecting a supplier, check their credentials, customer reviews and certification.

Container eligibility

Some types of bottles (for example milk bottles) and cans don’t qualify for payment under the DRS scheme. Although qualifying containers will display clear labelling, to minimise potential issues stores should have an alternative bin located nearby and ensure the details of a 24/7 customer service hotline are displayed prominently. Some bottles and cans classed as ‘low-volume products’ because they’re produced in quantities of less than 5000 units per year so don’t qualify for DRS but still need to be recycled responsibly in line with your business waste ‘duty of care’.

Staff training

Hands-on training helps your store team use a RVM confidently. To minimise disruption to your operations, check the training sessions include how to use it, maintain it and fix common issues. Whilst people may have seen similar equipment abroad, first-time users in England are likely to need help so you may need to reflect this in your shift patterns. Although they are easier to maintain compared to an instore coffee machine, you'll still need to account for the time needed to keep it running correctly in your staff rotas.

Automated Reverse Vending Machine (RVM) Operational Pros vs. Cons

Businesses in England can get an insight into the store implications of installing an automated reverse vending machine by learning from European countries that have already implemented the machinery.

Factors	RVM Operational Advantages (Pros)	RVM Operational Disadvantages (Cons)
Staff workload	Automates the process of scanning bottles/cans over the counter which reduces staff hours.	Confused customers may still interrupt your staff for help.
Customer footfall	Machines may attract new customers to your store which may result in increased sales.	If placed in a narrow aisle, queuing customers waiting to use the machine can cause bottlenecks.
Shopfloor utilisation	Machines can occupy under-utilised space in foyers alongside other click-and-collect hubs.	High-margin products merchandised in the space occupied by the equipment could deliver more revenue per square foot.
Cleaning	The machine reduces staff manual handling of individual containers being returned.	The floor around the RVM will need extra monitoring and cleaning due to escaping liquids.
Retail waste management	Like a baler, an RVM compacts the recyclable waste to a fraction of its original size.	Customers are more likely to deposit higher number of cans using this mechanical system of return so you may receive a larger amount of recycling to store back of house.

RVM FAQ's

1. Should I install an RVM inside or outside our store?

It'll be easier for your team to monitor and service an indoor RVM but unless you've got space going spare, you'll need to make some changes to your current store layout to accomodate it. Check any agreements you have with existing providers of coffee machines or click-and-drop equipment before you make any layout changes. Outdoor RVM's preserve indoor merchandising space but you need to ensure you choose a machine with an appropriate IP rating.

2. How big is a RVM?

The size of RVM varies with the smallest units being the same size as a filling cabinet to larger units being the same size as a parcel delivery locker. Retail businesses need to balance the cost of a large RVM that may only need emptying once a day compared to a cheaper, smaller machine that needs emptying more frequently.

3. Are reverse vending machines mandatory?

No, retailers may opt for either manual return or for self-service collection using a reverse vending machine (RVM).

Let's talk

If you want to find solutions for retail waste contact QCR. The team at QCR have over 25 years of experience of supplying recycling equipment and waste compaction equipment to retail businesses. QCR are SafeContractor™ certified for additional reassurance that you're dealing with industry professionals.