This week saw a landmark announcement on the journey to launching the first ever UK deposit return scheme (DRS) for drinks containers as scheme administrator, Exchange For Change, confirmed the fee businesses will receive for handling returned containers across England, Scotland and Northern Ireland (Wales is pursuing its own approach).
Businesses offering manual return points will receive 3p for each in-scope single-use container – those with a capacity of 150ml to 3 litres made wholly or mainly from PET plastic, aluminium, or steel. Fees for automatic return points, whereby businesses install a reverse vending machine on their premises, will operate on a tiered basis with 5p per container up to 225,000 in-scope items returned annually and 1.3p for returns in excess of 225,000.
Due to launch in October 2027, DRS represents a seismic shift in how packaging for drinks consumed both in and out of the home is managed as part of government plans to create a more circular economy. Retail store operators are most heavily impacted by DRS, however there are major implications too for those operating restaurants, pubs, coffee shops and other out of home venues.
Although hospitality and foodservice businesses are not required to operate a return point –
only grocery retailers are mandated to do so under the regulations – operators will still have to pay a deposit for each in-scope container to product suppliers such as drinks distributors and wholesalers. Those that are confident drinks will be consumed on site have the option to designate their venue as closed-loop meaning they don’t have to pass the deposit onto customers, which has been set at a flat rate of 20p per container. If the deposit is not passed on, the operator will forfeit the deposit value unless the containers are returned to Exchange for Change or other suitable collection arrangements are made.
Hospitality venues that have a high-level of takeaway traffic, however, can choose to operate a return point and apply the deposit to customer purchases of in-scope containers. This is meant to remove the risk of businesses losing out financially should a customer take the bottle or can off site and not return it.
Exchange for Change, the not-for-profit, industry-led organisation delivering DRS across England, Scotland and Northern Ireland, said it had taken onboard a wide range of feedback when setting the handling fee.
“The network of return points across the UK will be extensive, and the nature of collections will range from small convenience stores manually collecting and returning a small amount of containers, through to large multinational supermarket chains operating multiple reverse vending machines that collect several thousand containers each week at every store. The RHF [retail handling fee] reflects this diversity in our retail sector, and delivers a fair scheme for all,” said Russell Davies, Exchange For Change CEO.
Fee levels will be reviewed early next year prior to the scheme going live in the autumn and will continue to be reviewed annually to take account of new data available from producers and retailers, as well as to consider other relevant factors.
While details of the scheme across England, Scotland and Northern Ireland are gradually becoming clearer, there remains significant uncertainty over the nature of DRS in Wales. The Welsh Government has stuck determinedly to its decision to include glass within its own scheme, despite protests from business groups who claim UK-wide alignment is vital to delivering a successful DRS that grows the circular economy for plastic bottles and metal cans. Wales has also yet to appoint a scheme operator, despite Exchange for Change having applied to fulfill the same function it is performing across the rest of the UK.
Small Bites
Food a blind spot in UK carbon budget
The UK Government’s latest carbon budget offers no credible plan to transform food and farming, according to campaigners. This week, the government confirmed its proposed level for the seventh carbon budget, setting a target to reduce emissions by around 87% in the period 2038-42 from 1990 levels. This is in line with the advice of the Climate Change Committee and is designed to keep the UK on-track to achieve net-zero greenhouse gas emissions by 2050. The Department for Energy Security and Net Zero marked the announcement by issuing a press release highlighting the government’s clean energy and climate plans including investment in renewable and nuclear energy, and support for home insulation. However, food and farming campaigners have pointed to a blind spot where land use sector decarbonisation is concerned with food production on track to become the UK’s largest source of emissions by 2050, according to Sustain. The charity pointed out that the government’s impact assessment for the seventh carbon budget contains no meaningful support for a green transition for the food system. “Farmers are on the frontline of the climate emergency, yet they are being left behind,” said Ruth Westcott, climate and nature emergency campaign manager at Sustain. “Food is set to become our biggest source of emissions, but the government has no plan to support farmers to grow more of the healthy, sustainable food we need, like British vegetables, pulses and legumes.”
Regen ag improves tolerance to drought
Farmers adopting regenerative practices are making themselves more resilient to drought, a study has shown. Consultancy Soil Capital has released early findings from an analysis of independently verified field data taken from across 1,262 farms in France between 2021 to 2024. It found farms adopting more regenerative practices consistently outperformed more conventionally farmed holdings during drought conditions, both in terms of yield and profit stability. Yields fell by 22% on average on the least regenerative farms following the droughts experienced across France in 2023, compared with just an 8% decline on the highly regenerative farms. Across cereal crops specifically, 82 of France’s 96 departments (regions) experienced significant drought during the period and, within these, regenerative practices reduced drought-related yield losses by at least 10% in around 85% of cases. Soil Capital said the results showed the growing financial materiality of measures to improve on-farm resilience. “For the first time, we are moving beyond anecdote or modelling to show, through large-scale independently verified field data, how regenerative agriculture can help protect production,” said Andrew Voysey, chief impact officer at Soil Capital.
Net-zero jobs hit new heights
The UK’s net-zero economy now underpins the jobs of more than a million UK workers, who together generate £105bn in gross value added (GVA) for the economy, new analysis has found. From solar panel installers to electric car production line engineers, 1.1 million people are now directly involved in the net-zero economy, generating £119,300 in economic value per full-time job, around 1.5 times the national average. The findings were revealed in a report by the Energy and Climate Intelligence Unit (ECIU) with analysis provided by CBI Economics and The Data City. At an average of £43,142, net-zero jobs also earn 11% more than the current national average of £39,039. Yorkshire and the Humber region lead the way in generating GVA from net-zero jobs. “Reaching net-zero emissions is scientifically the only way to bring the climate back into balance and stop climate change but it’s now become a major part of the UK economy,” said Peter Chalkley, director of the ECIU. The hospitality and foodservice sector has become a significant supporter of net-zero jobs as businesses look to invest in on-site renewable energy and shift vehicle fleets to electric in order to achieve their own net-zero ambitions.
Chef’s Special
How do you like your eggs? “Often” and “for breakfast” is seemingly the answer for the many Brits responsible for a recent surge in demand. A report by the British Egg Industry Council (BEIC) has revealed UK egg consumption reached 209 per person in 2025, up 27% over the past 20 years. Breakfast’s share of total shell egg occasions rose from 38.2% in 2021 to 47.3% in 2024, thanks in no small part to out-of-home venues where the breakfast and brunch opportunity is described as “one of the fastest-growing areas of hospitality” by BEIC. Demand is being driven by younger adults who are ordering dishes like eggs benedict and shakshuka in restaurants and cafes and then recreating them at home. Market research firm Mintel has also highlighted the rising popularity of Asian-inspired savoury porridge made with egg. Eggs are often seen as a healthy option given they contain choline, folate, vitamin D, iodine, B vitamins and are a source of natural protein. Meanwhile in breaking, ahem, egg news, Sainsbury’s has made headlines this week with its decision to transition its range from brown eggs to white eggs laid by white feathered hens. The retailer explained “these hens are known for their gentle, more docile nature, which helps support better health and welfare outcomes by reducing behaviours such as feather pecking”. It added that white feathered hens also tend to have a longer laying life and require less feed for the same egg output, contributing to over 12% reduction in carbon emissions compared to brown hens.
Last Orders
Tom Kerridge is the face of a new campaign to cut VAT to 10% for the hospitality sector. The chef, restauranteur and consultant is heading up a campaign positioned as supporting high street and community businesses like pubs, restaurants and hotels, and protecting local jobs. A reduction in VAT to 10% would bring the UK into line with European levels. Last month, Chancellor Rachel Reeves announced plans to temporarily cut VAT to 5% during the summer holidays for days out including children’s meals in restaurants, kids’ tickets to cinemas and theatres, and entry to a range of attractions. Kerridge’s campaign is pushing for a permanent cut to help safeguard the future of businesses and jobs. “We know that the key to unleashing hospitality’s potential to grow and thrive into the future comes through a VAT cut. We’re making sure government knows that too,” said Kerridge. The campaign is also being supported by trade bodies including UKHospitality and the British Beer and Pub Association.
