Exchange For Change has agreed an extension to the Deposit Return Scheme’s (DRS) exemption criteria to support small stores.
While stores in urban areas with a retail footprint of less than 100m² are automatically exempt, those with a sales area of 100–199m² and rural retailers with a sales area of less than 200m² can now apply for an exemption.
Additional exemptions may also be granted on the basis of proximity, heritage or listed building restrictions, site access or lack of utilities.
In addition, Exchange For Change is making £60m available in grant funding to help up to 10,000 small, independent retailers meet the cost of installing Reverse Vending Machines (RVMs) across Scotland, England and Northern Ireland.
Russell Davies, Exchange For Change CEO said:
“Retailers will play a fundamental role in transforming how we increase recycling and reduce litter in every corner of the UK through the Deposit Return Scheme.
“This package of support has been developed following extensive consultation with industry and intended to help retailers of different sizes make the best choice for their business, whether that’s installing an RVM or applying for an exemption.
“Together with the Return Handling Fee, the extension to exemptions and the provision of grants for small, independent retailers is another significant milestone in our work to deliver a scheme that is fair for business and accessible and easy to use for all consumers.”
Today’s news follows the announcement last week of the Return Handling Fee (RHF), which has been structured into tiers to take account of the diversity in the UK’s retail landscape:
Manual return points
- 3p per container
Automatic return points
- Tier 1 – 5p per container, up to 225,000 in-scope items returned annually
- Tier 2 – 1.3p per container, for annual in-scope returns in excess of 225,000.
The RHF is designed to help cover costs involved in purchasing equipment for the collection and storage of beverage containers, along with items such as staff training and rental value of the floor space or any other part of the premises used to collect or store returnable containers.
The extension of exemption criteria is intended to allow more retailers to make a choice about whether they wish to be part of delivering the DRS by operating a return point. It will be contingent on there being sufficient local provision of return points, and Exchange For Change will act as the body providing approval for exemptions.
While groceries retailers with a retail space above 200m² may apply for an exemption based on size, the new criteria will uphold a presumption against granting an exemption to those greater than or equal to 200m².
Further details on how to apply for exemptions and detailed eligibility criteria for grants will be made available in Q3 2026.
