Exchange For Change has confirmed the fees to be paid to return point operators under the Deposit Return Scheme (DRS) across England, Scotland and Northern Ireland, ahead of its launch in October 2027.
The Return Handling Fee (RHF) will operate on a tiered basis across manual and automatic return points, covering a range of return volumes.
Following industry consultation, the fees have been set at 3p per container for manual return points. For automatic return points using a reverse vending machine (RVM), the structure is split into two tiers: 5p per container for up to 225,000 in-scope items returned annually, and 1.3p per container for volumes above that threshold.
The structure is designed to reflect differences in store size and return volumes across the UK retail landscape, from small convenience stores handling lower volumes manually through to larger operators using reverse vending machines.
The RHF will be reviewed ahead of launch and on an annual basis thereafter, using operational data from producers and retailers to refine assumptions and ensure the scheme remains balanced.
The confirmation of the handling fee follows Exchange for Change’s proposal of a £6,000 grant to help small, independent retailers cover the upfront costs of installing an RVM. The funding would sit alongside the RHF and be paid in three annual instalments of £2,000.
Russell Davies, CEO of Exchange For Change, said: “We have taken onboard a wide range of feedback provided by retailers, producers and trade bodies, and established a return handling fee that reflects the complexities of the UK retail landscape and ensures the scheme remains in balance.
“The UK’s retail landscape is unique in the world, spanning large supermarket chains, medium-sized franchises and a very high ratio of small and independent convenience stores comparative to other nations.
“The RHF reflects this diversity in our retail sector, and delivers a fair scheme for all.”
However, the Association of Convenience Stores (ACS) has raised concerns that some retailers may not be able to cover their costs if they host an RVM.
ACS modelling indicates that the fixed costs of providing an RVM are likely to exceed £10,000 annually. This means retailers would need to see returns of at least 4,000 containers a week, or 208,000 a year, to break even.
Exchange for Change recommends that businesses seeing more than 2,000 containers returned each week should opt for an RVM due to the complexities of manual handling at those volumes.
If the ACS cost estimates prove accurate, stores with return rates of between 2,000 and 4,000 containers a week would lose money each year as a result of participating in the scheme.
ACS Chief Executive Ed Woodall said: “Convenience retailers want to be part of the scheme and providing those services in their community, but they should not be financially punished for doing so. We hope that Exchange for Change will continue to look closely at the handling fees to optimise the network of return points for customers and all convenience retailers.”
This sentiment was echoed by the Scottish Grocers’ Federation. Chief Executive Pete Cheema said Exchange for Change “must look again at the fee and account for the full costs of staffing, cleaning, servicing, and loss of premium floor space for all retailers, to ensure they are getting a fair settlement”.
