Drinks producers will not pay a producer fee during the first 15 months of the UK Deposit Return Scheme (DRS), under fee rates announced by Exchange For Change.
The industry-led organisation responsible for delivering the UK-wide scheme has confirmed that the producer fee will be set at zero pence per container when the DRS launches in October 2027.
The 0p rate will remain in place until the end of December 2028, with fees then expected to be introduced from January 2029.
Exchange For Change said the initial zero-fee period would help limit costs for businesses as the scheme gets underway.
Russell Davies, Chief Executive of Exchange For Change, said: “We recognise the breadth of work being undertaken by industry to prepare for launch in October 2027. Setting a 0p producer fee for the first 15 months of the scheme is intended to support businesses in the early stages of the scheme."
“As a not-for-profit organisation, we are committed to ensuring that producer fees always remain as low as possible, while supporting the long-term financial sustainability of the scheme.”
What is the producer fee?
Producer fees are intended to contribute towards the cost of running the DRS.
Based on current projections, the fee is expected to rise to 0.6p per aluminium and steel container and 2.3p per PET container from January 2029. These rates are currently forecast to remain in place until December 2032.
Exchange For Change stressed that the figures are not final, with the proposed fees due to be reviewed and validated in May 2027, ahead of the DRS launch.
The fees will also be subject to annual reviews once the scheme is operational, with changes possible as more information becomes available on costs, contracts and the performance of the system.
Exchange For Change said it had developed the proposed fee structure following consultation with businesses across the drinks supply chain.
Responses were received from producers and retailers of varying sizes, with the organisation saying the feedback had helped shape both the proposed rates and the approach to setting them.
The announcement follows confirmation from Exchange For Change that a flat 20p deposit will apply to all drinks containers covered by the scheme.
Consumers will pay the deposit when purchasing an in-scope container and receive the full 20p back when the empty container is returned.
