The UK's Deposit Return Scheme (DRS) has had a long and complicated journey toward implementation. But with the recent confirmation from Exchange for Change of a flat 20p deposit across PET, steel, and aluminium containers applicable from October 2027, a critical piece of the UK's circular economy infrastructure has been locked in.
The 20p figure might seem arbitrary but it isn't. It's the product of careful behavioural research and understanding the reasoning behind it tells us a great deal about how effective circular systems are actually designed.
The Goldilocks problem of deposit levels
Exchange for Change's research tested deposit levels from 10p to 30p and found a delicate optimal zone, one that's worth understanding in detail.
Below 15p, the financial incentive wasn't strong enough to reliably drive consumer behaviour change. The 90% return rate target (the level at which the scheme becomes genuinely effective at capturing materials) was unlikely to be achieved at lower deposit levels. People would simply forget, or not bother, or factor the small loss into their cost of convenience.
Above 25–30p, a different problem emerged: disproportionate financial burden at the point of purchase, particularly for lower-income consumers buying multiple drinks. A deposit that's too high risks making the scheme feel punitive rather than incentivising and risks political and consumer backlash that could undermine the whole programme.
At 20p, the research found a level that's memorable, meaningful enough to motivate action and low enough not to feel like a tax on everyday purchases. It's a genuinely elegant piece of applied behavioural economics!
Simplicity is a feature, not a compromise
The decision to apply a flat 20p across all container types rather than varying the deposit by material or size is equally deliberate. Simpler systems have higher compliance rates. When consumers have to remember different deposit values for different container types, cognitive load increases and return rates fall.
A flat rate that applies consistently across PET bottles, steel cans, and aluminium cans means the consumer experience is straightforward: every drink container comes with a 20p deposit, every container can be returned for 20p. That simplicity is valuable both for consumer uptake and for retailer implementation.
Infrastructure and data: the next challenge
At Reath, we've always argued that successful circularity isn't just about good intentions, it requires infrastructure and clarity. The 20p confirmation provides the regulatory certainty that the industry needs to move from pilots and trials to permanent, nationwide systems.
The announcement also marks a shift in the challenge. Now that the deposit level is confirmed, attention turns to implementation: how do we manage the data and logistics to ensure every container and every 20p is accounted for?
This is not a trivial question. The DRS will require robust track and trace infrastructure, reliable container identification systems, and data reporting that can demonstrate scheme performance to regulators. For brands, it adds another layer of packaging data management to an already complex landscape that includes EPR, RAM, the Plastic Packaging Tax, and (for those selling into the EU) PPWR.
The countdown to 2027 begins now
October 2027 may feel distant, but the experience of EPR, where many brands arrived underprepared despite years of advance notice, suggests that early action is strongly advisable.
Brands that begin building their container data infrastructure now, that start understanding which of their products will fall within scope and that begin working with their packaging suppliers on DRS-compatible design, will be significantly better positioned than those that wait for the deadline to approach.
The 20p deposit is confirmed. The direction of travel is clear. The question now is whether your data infrastructure is ready to support it.
Reath helps brands prepare for EPR and the full landscape of UK packaging regulation with the data infrastructure they need. Learn more at reath.id