A flat rate 20p deposit will apply to all drink containers in scope of the UK’s Deposit Return Scheme when it launches next year.
Anyone purchasing single-use PET plastic, steel and aluminium drinks containers between 150ml and 3 litres will pay the 20p fee at the point of purchase, which is refundable when the empty container is returned at an approved return point.
Exchange for Change, the not-for-profit, industry-led organisation operating the scheme in England, Scotland and Northern Ireland, said the fee was a sufficient behavioural incentive, simple to understand, and workable for producers and retailers.
The confirmation of the 20p deposit came after a consultation with industry and economic analysts, as well as studies on the deposit levels in DRS systems globally.
The analysis included behavioural market research to test consumer response to deposit levels ranging from 10p to 30p.
Exchange for Change said it found that deposit levels below 15p are unlikely to provide ‘sufficient incentive’ to help achieve the 90% return rate target over three years. However, it also found that a 30p level could result in a ‘disproportionate consumer cost exposure’.
The analysis also considered the potential of applying a variable deposit value depending on the size of container or material but found this often results in consistently lower return rates on smaller containers.
Russell Davies, Exchange for Change of CEO, said: “The deposit value is a pivotal part of how the DRS will work in practice. That’s why we’ve engaged widely with industry, undertaken extensive market research and in-depth analysis on how schemes work in other countries.”
“Confirming this now, with just under 18 months to go until the DRS is live, will help producers and retailers with their planning and preparation for the scheme, and we will continue to support them closely throughout this process.”
Commenting on the announcement, Travis Way, managing director at EcoVend, called confirmation of a flat 20p deposit a ‘helpful step forward’ for businesses.
“A flat rate also brings practical benefits for businesses by simplifying implementation, reducing administrative complexity and supporting more consistent system design across retailers, producers and return operators,” Way continued.
“A simple, uniform deposit should also support consumer understanding and mirror other well-established European schemes.”