The UK’s aluminium packaging recycling organisation (Alupro) has voiced concerns following the announcement that the UK’s Deposit Return Scheme (DRS) will adopt a flat-rate deposit fee, warning of potential market distortion.

Scheme administrator Exchange for Change confirmed at the end of April that a uniform 20p deposit will be applied to all in-scope beverage containers when the scheme launches in 2027. The decision follows an industry-wide consultation which evaluated various models, including variable rates and different price points.

While a 15p deposit was considered too low to incentivise returns and a 30p fee was deemed a financial risk to consumers, the administrator ultimately rejected a variable model—where larger containers carry higher deposits—citing concerns over consumer complexity.

Tom Giddings, executive director of Alupro, expressed disappointment at the move, noting that the organisation has long advocated for a variable rate to maintain a level playing field across different packaging formats.

“While we understand and respect the arguments for and against each model, our members’ international experience shows that a DRS with a variable deposit rate would deliver optimum results by incentivising returns without encouraging consumers to change their consumption behaviour,” Giddings said.

Giddings pointed to the Republic of Ireland’s recently launched DRS as a successful example of a variable model in a market similar to the UK. He cautioned that a flat fee could inadvertently drive consumers away from smaller, highly recyclable formats—like aluminium cans—towards larger plastic bottles to avoid the cumulative cost of deposits on multipacks during a cost-of-living crisis.

“In the long term, this could lead to fewer numbers of containers in the DRS overall, which will itself impact the revenue streams of the scheme,” he warned.

Despite the setback, Alupro remains committed to the scheme’s success, urging the administrator to monitor market shifts closely and focus on the “once-in-a-generation” opportunity to bolster the circular economy.

Giddings emphasised that the DRS should be viewed as more than a litter reduction strategy, but as a mechanism to maximise high-quality material capture for closed-loop recycling.

“We need to see the implementation of a national DRS as a defining moment in efforts to maximise post-consumer packaging capture volumes and return material to the businesses that have the opportunity to turn it back into cans and bottles,” he added.

As the 2027 rollout approaches, Alupro is calling for clear, engaging communication to win over the public, citing its own successful ‘Every Can Counts’ and ‘MetalMatters’ campaigns as benchmarks for industry-led engagement.

“Awareness is key, but the flavour can’t be dry and boring,” Giddings concluded. “DRS is not just about increasing recycling rates; it’s about tangible climate outcomes, security of supply, energy savings and carbon reductions.”