Government considered delaying DRS to ease burden on supermarkets

The proposal is contained in an official document dated 23 April 2026, which formed park of a leaked bundle of around 50 pages of presentations, strategy ideas and policy submissions reportedly circulated around Number 10 and parts of the civil service, which was leaked to Sky News last week.

Under a section titled ‘Keeping an essentials basket of food affordable’, the document says the government was working with Defra and HM Treasury on the terms of a potential deal to keep the price of essential groceries down,

It said the government could “temporarily easy regulatory burdens” in return for a commitment from supermarkets not to increase the price of a basket of essential groceries over a fixed period.

Among the measures suggested as part of the offer was “delayed/pausing the Deposit Return Scheme”.

The leaked document does not state that a decision had been taken to delay or pause the DRS.

While Defra did not respond to requests for comment, the scheme administrator Exchange for Change confirmed that DRS is on track to go ahead next year as planned.

The Financial Times reported in May that Treasury officials had been discussing voluntary price caps on staple products with major supermarkets, with possible regulatory incentives including easing packaging rules and delaying other requirements.

The leaked document appears to provide further detail on the possible regulatory concessions being considered, including DRS.

Deposit Return Scheme

DRS is currently scheduled to launch in October 2027 across England, Scotland and Northern Ireland. The Welsh scheme is also set to launch on the same date.

The scheme will apply to single-use drinks containers between 150ml and three litres made from PET plastic, steel and aluminium. Consumers will pay a refundable deposit of 20p when purchasing an in-scope drink and will be able to reclaim it by returning the empty container to a designated return point.

Exchange for Change, formerly the UK Deposit Management Organisation, was appointed to operate the scheme in England and Northern Ireland in May 2025 and designated as the scheme administrator in Scotland in June 2025.

It was announced last month that it would also be the scheme administrator for Wales.

The scheme administrator commented: “Regulations in England, Scotland, Northern Ireland and Wales all require the DRS to be introduced from October 2027 and Exchange for Change has been appointed to deliver the scheme across the UK.

“The Deposit Return Scheme is fully on track, with significant industry backing from retailers and producers, and a clear programme plan that is being delivered on schedule.

“We look forward to continuing to work with industry, stakeholders and the four UK governments to deliver a scheme that will transform how we recycle drinks containers, preventing billions of bottles and cans from polluting our rivers, beaches, towns and countryside every year, and helping protect our environment for generations to come.”