Exchange For Change, the industry-led organisation delivering the Deposit Return Scheme (DRS) across the UK, has today (Sept 2) announced the intended producer fees for the scheme, which will launch in October 2027.
Producer fees are the charges that drinks producers will pay to help cover the costs of operating the scheme. The announcement of producer fees follows extensive consultation and engagement with industry over several months.
To minimise costs for businesses at the scheme’s outset, the producer fee will be set at 0p for the first 15 months of the DRS’s operation (October 2027-December 2028).
Based on current data, it is anticipated that producer fees then will be 0.6p per unit for aluminium and steel containers and 2.3p per unit for PET containers, projected to take effect from January 2029 to December 2032. This will be reviewed, validated and reconfirmed in May 2027.
Exchange For Change will continue to review the producer fee as further cost forecasts, contractual pricing and operational data becomes available, and will reconfirm the fees following another validation process in May 2027. Producer fees will then continue to be reviewed annually once the scheme is launched, and adjusted if required.
A wide-ranging consultation on the fees saw responses from across the drinks supply chain, representing producers and retailers of all sizes, which directly informed Exchange For Change’s approach to setting the producer fee structure and levels.
Russell Davies, Exchange For Change Chief Executive, said: “Publishing the producer fees is another major milestone delivered as we move towards the launch of the deposit return scheme in October 2027, and will help businesses in their preparation and planning. Our approach to setting the producer fees has been founded on collaborative and constructive engagement with industry, and I would like to thank all of those whose contributions helped to inform and guide the outcome.
“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.”
The announcement of producer fees is the latest milestone in Exchange For Change’s delivery plan and follows confirmation of the 20p deposit in April, alongside confirmation of the Return Handling Fee, return point exemptions processes and grants for small independent retailers in recent months.