A flat 20p deposit level is being proposed for the UK Deposit Return Scheme that is due to launch in October 2027, regardless of the container material or size.
Below is a summary by the Association of the Exchange for Change Board’s considerations and recommendations for establishing the deposit structure and levels to meet statutory targets.
Deposit Level and Scheme Success Factors
The Board recognizes that deposit value alone does not determine scheme success, emphasizing the importance of return point coverage and convenience for participation.
- Deposit value is one of multiple factors influencing scheme success.
- Stakeholder feedback and consumer research highlight return point coverage and convenience as critical.
- Proximity, visibility, and reliability of return points may impact return rates more than deposit level.
Example:
Ireland expanded return points in city-centre bins to target on-the-go containers.
Consumer survey:
- 50% of 1,651 respondents cited lack of convenient return locations as a main barrier.
- Respondents willing to travel no more than 10 minutes for returns.
Scheme design will incorporate these insights to ensure coverage and accessibility. Achieving 90%+ return rates depends on deposit level and a convenient return infrastructure.
Recommended Deposit Level and Rationale
The majority of the Board recommends a 20p deposit level, balancing effectiveness, sustainability, and consumer affordability.
- International benchmarks:
20–25p deposit levels achieve 90%+ return rates in comparable systems. - Higher deposit levels would increase upfront costs, especially affecting lower-income households and multipack buyers.
- Price sensitivity analysis and stakeholder feedback support 20p as optimal.
- Long-term stability and public trust are prioritized to avoid frequent adjustments.
- 20p deposit aligns with statutory return rate goals, financial sustainability, operational feasibility, and consumer affordability.
Full Recommendations and BSA Response