UK Deposit Management Organisation Ltd (UK DMO) has on Tuesday been announced as the operator of the new deposit return schemes (DRS) for single-use plastic and metal drinks containers in England, Northern Ireland and Scotland.
The appointment has been made by the UK government and the Department of Agriculture, Environment and Rural Affairs of Northern Ireland. In Scotland, Scottish Ministers have also decided that UK DMO should be designated as the DRS scheme administrator.
UK DMO is a business-led, not-for-profit organisation created to deliver one of the most significant environmental infrastructure programmes in a generation across England, Northern Ireland and Scotland.
According to a report from The Countryside Charity, introducing DRS is expected to create up to 4,000 jobs across the UK and will bring significant investment in infrastructure required to deliver the scheme including storage, logistics, and reprocessing.
UK DMO will now begin engaging with partners including the three governments, business, including drinks producers and retailers, consumer and environmental groups to design and operate a scheme which works for everyone. Producers, retailers and other interested parties are encouraged to visit the UK DMO website and register their interest in getting updates at ukdmo.co.uk.
UK DMO is governed by a board that brings together voices from across the drinks and retail sector across all three nations. Members have been nominated by trade associations representing both large and small producers, major supermarkets, small convenience stores and wholesalers from across England, Northern Ireland and Scotland. Recruitment is also underway for an independent chair and non-executive directors.
The board includes highly experienced figures from companies including Shepley Spring, Radnor Hills, Coca-Cola Europacific Partners, Heineken UK, Lidl, Tesco and Co-op.
Co-op’s Rebecca Oliver-Mooney represents small store operators in the board, after nominated by the three trade bodies in the sector, Association of Convenience Stores, National Federation of Retail Newsagents, and Scottish Grocers Federation.
UK DMO is responsible for designing and operating the systems that make the scheme work - from producer registration to logistics, finance, fraud prevention and public communications.
“DRS is an opportunity to deliver a transformational step forward in the circular economy in the UK and the appointment of the DMO is a major milestone in that journey. We don’t underestimate the scale of the challenge, but our aim is simple - to build a system that’s fair, efficient and easy to use,” the UK DMO board said in a joint statement.
“Our work is already underway, and we’ll be working closely with governments, businesses of all sizes, environmental groups and consumer bodies to move forward as quickly as possible.”
UK DMO has been tasked by the three governments with delivering a deposit return scheme to go live in October 2027. From that date, when people buy drinks containers made from PET plastic, steel and aluminium between 150ml and 3 litres, they will pay a small deposit - which they will get back in full when they return the empty container for recycling.
Every year, 6.5 billion drinks containers are discarded across England, Scotland and Northern Ireland. contributing to 43% of all litter. The scheme aims to reduce this significantly while increasing recycling rates and reducing emissions.
“This is a major step towards the delivery of a Deposit Return Scheme for the UK. For the scheme to deliver a step change in recycling rates, local shops will need to play an integral part, offering a convenient network of return points both for local residents and people consuming drinks on the go,” James Lowman, Association of Convenience Stores chief executive, said.
“We are looking forward to working with the newly-formed Deposit Management Organisation to ensure that the scheme is operationally viable and attractive for retailers to take part in. With less than two-and-a-half years before launch, it is vital that retailers can make informed choices about how to take part in the scheme, and we are committed to providing the information and advice they need.”
Scottish Grocers’ Federation chief executive Pete Cheema added: “SGF understands how important DRS will be for our members and for promoting sustainability across Scotland and the UK. That is why we worked closely with the Scottish Government and stakeholders throughout the development of the Scottish DRS.
“Our engagement with DEFRA and the Advisory Council to establish the DMO has been positive, and we look forward to working closely with the new administration team in the coming months and years. Now that the DMO is in place, it provides an important opportunity for our members to address any concerns they have as early as possible and help build confidence in the scheme. Making sure that retailers have all the information they need about the options available to them.
“SGF will also continue to meet with the DRS team in the Scottish government, and our colleagues across the Scottish sector, to support the delivery of a fully fit for purpose scheme that works for all parts of the supply chain.”
The Federation of Wholesale Distributors and the Scottish Wholesale Association, who have nominated Richard Booth, formerly of Bestway Wholesale, to the board, jointly said: “The wholesale sector welcomes the announcement of the appointment of the Deposit Return Scheme Deposit Management Organisation. This is a significant step forward in progressing a workable and effective DRS across the UK.
“We are pleased the wholesale sector is represented on the DMO Board, ensuring our voice and the interests of wholesalers operating across the UK, is heard at the highest level. Our engagement will be constructive and grounded in the operational knowledge and experience of our members.
“It is vital that the unique challenges faced by wholesale businesses, as both distributors, producers and as retailers are recognised and addressed in a practical and proportionate manner by the DMO. Our priority remains ensuring a DRS that is both environmentally effective and commercially workable for our sector.”
