Last reviewed: 13 October 2026
A London restaurant pays deposits on a case of eligible drinks. Some containers are emptied at tables; others leave with takeaway customers. That difference will shape what the customer pays and whether the venue has an empty container available for recovery.
The Deposit Return Scheme (DRS) is due to launch on 1 October 2027. Exchange for Change, the scheme administrator, has confirmed a refundable 20p deposit for eligible PET, aluminium and steel containers in England, Northern Ireland and Scotland. Our DRS overview for pubs, bars and restaurants explains the wider scheme. The hospitality stock guide covers affected formats; this article follows the deposit through an English venue.
The venue pays the deposit before service
Under the current England and Northern Ireland model, a supplier charges the deposit when supplying a deposit item. A venue therefore pays upstream before deciding how to treat it at the point of sale. Registered producers separately pay Exchange for Change an equivalent amount for each deposit item they supply. This does not mean every supply-chain business sends another identical payment to the administrator.
Under the England and Northern Ireland regulations as originally made, the venue’s decision depends on where the drink will be consumed.
On-site, takeaway and mixed sales in England
| Service route | Customer deposit treatment | What it means for the empty container |
|---|---|---|
| Immediate consumption on the premises | The venue may charge the deposit or choose not to. | If it absorbs the deposit, retaining eligible empties provides a route towards recovery, subject to acceptance and collection arrangements. |
| Takeaway or other off-premises consumption | The venue must charge the deposit. | The customer can take the container to an appropriate return point to seek the refund. |
| A venue offering both | Apply the appropriate treatment to each sale. | Make the service route clear when the sale is made. Check current guidance where the place of consumption is uncertain. |
If an England or Northern Ireland venue chooses not to charge the deposit for immediate on-site consumption, it must display information clearly and accessibly where customers choose the items. In paraphrase, the notice must explain that the retailer is not required to charge the deposit for an item consumed immediately on the premises and ask customers not to remove the empty containers.
A £200 illustration
Suppose a venue buys 1,000 eligible containers. At 20p each, the deposit component is:
1,000 × £0.20 = £200
This is a hypothetical illustration of deposit value, not a Champers invoice, fee, VAT calculation or accounting instruction.
If the venue charges customers, they can take eligible containers into the return system. If the venue absorbs the deposit for on-site service, keeping eligible empties within an accepted return or collection route matters. Containers that leave may reduce the value the venue can recover. Do not assume every container bought will generate an automatic credit.
Keeping your own empties is different from accepting public returns
An ordinary pub, bar or restaurant in England is not automatically a public return point. The mandatory duty applies to defined groceries retailers; that definition excludes hospitality venues such as bars, restaurants and clubs selling for consumption on the premises.
Keeping your own empties is different from accepting containers brought in by consumers. A venue may seek authorisation to run a voluntary return point. A mixed business with a grocery-retail operation should check its actual activities.
Scotland uses a different on-site model
Under current SEPA guidance, a Scottish hospitality retailer should not charge the consumer deposit when a scheme drink is definitely consumed on the premises. The venue retains the packaging for Exchange for Change to collect. For collected packaging, the administrator reimburses an amount equal to the deposits the retailer paid.
Scottish takeaway sales carry the deposit, and the retailer must display redemption information. Where consumption may take place off site, check the latest guidance before applying the definite on-site rule.
What still needs to be confirmed before launch
Confirm the following against current national guidance and your agreed arrangements before building a final workflow:
- how hospitality collection or another accepted return route will be set up;
- which container conditions and acceptance rules will apply;
- whether collection volumes or other requirements apply; and
- when and how reimbursement will take place.
Welsh hospitality arrangements need a separate national check; do not assume this process applies there.
Frequently asked questions
Must a London pub charge 20p on a drink consumed at the table?
Not necessarily. For immediate on-site consumption, an English venue may opt out. It must display the required information where customers choose the items, including a request that empty containers remain.
Must a takeaway drink carry the deposit?
Yes, if the drink is in an eligible container. The customer must be charged the deposit for takeaway or other off-premises consumption.
Does retaining my own empty containers make my venue a return point?
No. Keeping your own empties is distinct from accepting public returns. An ordinary hospitality venue is not automatically a return point, although mixed businesses should check their activities.
What happens if an empty container leaves the premises?
If the customer paid the deposit, they can seek the refund through an appropriate return point. If the venue absorbed it, a container that leaves is unavailable to the venue’s return or collection route, so the venue may not recover that value.
Map the route before setting the process
Separate on-site service from takeaway and identify where empties are likely to remain. The venue preparation guide covers systems, storage and staff planning. Champers customers can discuss affected stock and future product and deposit information, without assuming a collection or credit process.
Group
