Exchange for Change has announced a stepped producer fee structure for the UK's Deposit Return Scheme (DRS), with fees for all eligible drinks containers set at 0p for the first 15 months of operation.

The industry-led scheme administrator said the measure is intended to reduce costs for businesses during the early stages of the DRS, which is scheduled to launch in October 2027.

Producer fees are paid by drinks manufacturers to help cover the costs of operating the scheme. Under the proposed structure, no producer fee will apply between October 2027 and December 2028.

Based on current forecasts, fees are then expected to rise to 0.6p per unit for aluminium and steel containers and 2.3p per unit for PET containers from January 2029 to December 2032.

The proposed fees will be reviewed, validated and reconfirmed in May 2027 as further cost forecasts, contractual pricing and operational data become available. Once the scheme is operational, fees will be reviewed annually and adjusted where necessary.

Exchange for Change said the fee structure was developed following consultation with drinks producers and retailers of varying sizes across the supply chain.

Russell Davies, chief executive of Exchange for Change, said the publication of the fees would give businesses greater clarity as they prepare for the scheme’s launch.

“We recognise the breadth of work being undertaken by industry to prepare for launch in October 2027,” Davies said. “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.”

He added that, as a not-for-profit organisation, Exchange for Change would seek to keep producer fees “as low as possible” while ensuring the scheme remains financially sustainable.

The announcement follows several other DRS developments in recent months, including confirmation of a 20p deposit in April, as well as details of return handling fees, return point exemptions and grants for small independent retailers.