FRNº 25Restaurants & Dining

UK hospitality faces three deposit return schemes with 12 months to go

Three UK deposit return schemes launch in 12 months, with a 20p deposit, divergent take-back rules and Welsh glass inclusion. Five recyclers appointed as operators weigh opt-outs and cash flow.

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Is hospitality ready for DRS?
Is hospitality ready for DRS?Defence Images / Openverse

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  1. First course

    Three separate deposit return schemes launch across the UK in 12 months, with a 20p deposit on in-scope drinks containers.

  2. Second course

    England and Northern Ireland's scheme costs £632m to set up and £1.1bn annually to run, against £1.6bn in claimed annual benefits.

  3. Third course

    Suez, Cirqlr, Re.Group, Bywaters and Re-Gen were appointed last week to deliver DRS infrastructure across 10 UK regions.

UK hospitality operators have 12 months to prepare for not one but three deposit return schemes, with a 20p deposit applying to in-scope drinks containers and divergent rules on take-back obligations across England and Northern Ireland, Scotland and Wales.

A July briefing from the House of Commons library confirmed the official position: "three schemes" across the UK, one for England and Northern Ireland, one for Scotland and one for Wales. The scheme has been delayed eight years and will arrive four years later than promised. The Starmer government considered a further delay earlier this year to keep shopping baskets "affordable", but the launch date stands.

For hospitality, the mechanics differ sharply by nation. In England and Northern Ireland, venues selling drinks for on-site consumption can choose: charge the 20p deposit and collect no containers, or register as an "opt-out" venue and ask customers to leave empties for collection — risking the loss of the 20p deposit already paid to the supplier on each unreturned container. In Scotland, containers from drinks consumed on site must be collected by the venue and returned to the scheme administrator, raising what UKHospitality calls practical concerns around food safety, space and cash flow.

Wales adds glass to the scope, alongside PET plastic, steel and aluminium containers of 150ml to 3 litres covered in England, Northern Ireland and Scotland. Miles Beale, chief executive of the Wine and Spirit Trade Association, has been vocal in opposition. "The inclusion of glass will have a huge impact on the hospitality sector as it will add another layer of complexity and costs to the day-to-day running of their pubs and restaurants," he says. "It will mean extra staff training, finding storage space, managing waste collections and IT changes to incorporate new barcodes."

Exchange for Change (EfC), the industry-led administrator for all three schemes, will begin communications with hospitality businesses next year. Venues hosting return points will receive free collections, with containers counted and verified before deposits are reimbursed. EfC is still discussing with Scottish ministers whether the flexibility offered in England and Northern Ireland — letting businesses choose whether to apply the deposit at point of sale for drinks consumed on site — can extend north of the border.

UKHospitality continues to push for a "pragmatic approach" in Scotland allowing businesses to opt out of take-back entirely. "It's imperative that the final scheme minimises any administrative and cost burdens on hospitality businesses that are already under pressure from all sides and we will continue to push for this," says Jack Quick, UKH policy manager. UKH and WSTA have just published the latest iteration of their joint DRS guidance for the sector. Quick confirms UKH lobbying secured the decision not to designate hospitality businesses as mandatory return points in England and Northern Ireland, and says supplier conversations on deposit cash flows have been "happening for some time".

Awareness remains a weak point. Veronica Chambers, quality and technical manager at glass packaging manufacturer Croxsons, says awareness across hospitality "still appears surprisingly low" and communication will be critical. Her bigger concern is "what this means in practice day after day across potentially thousands of transactions".

The scale is significant. Of the 25 billion single-use drinks bottles and cans used annually in the UK, 6.5 billion go unrecycled. The Government puts the England and Northern Ireland scheme's set-up cost at £632m and annual running cost at £1.1bn, against claimed annual benefits of £1.6bn from reduced litter, lower emissions and material revenue. Latvia's scheme halved drinks containers found on its Baltic coastline within two years of launch.

Infrastructure moved forward last week with the appointment of five recycling providers — Suez, Cirqlr, Re.Group, Bywaters and Re-Gen — across 10 UK regions to collect and process returned containers. Exact return point locations remain unfixed, and the House of Lords secondary legislation committee has called for "a comprehensive network".

Venues must now train staff, store empties, integrate new barcode and EDI data, and reclaim deposits from EfC before go-live — while UKH and EfC continue negotiations over Scottish flexibility.

via packagingeurope.com (Original)

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Elena Vasquez

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News editor covering marketplaces and e-commerce at Eurotables Report.

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