Exchange for Change has announced the DRS return handling fees (RHF) and confirmed £60m in Reverse Vending Machine (RVM) grant funding for small indies.
Deposit Return Scheme (DRS) administrator Exchange for Change has set the RHF to be paid to return point operators across Scotland, England and Northern Ireland ahead of the scheme’s launch in October 2027.
The 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 an 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 RVMs.
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.
In addition, Exchange for Change has confirmed that it will make £60m available in grant funding to help up to 10,000 small independent retailers meet the cost of installing Reverse Vending Machines (RVMs).
Grants of £6,000 will be available per qualifying site, paid in three annual instalments of £2,000, beginning three months after RVM installation.
An extension to the DRS exemption criteria has also been agreed. While stores in urban areas with a retail footprint of less than 100sq m are automatically exempt, those with a sales area of 100–199sq m and rural retailers with a sales area of less than 200sq m 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.
Russell Davies, Exchange for Change CEO, says: “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.”
The Scottish Grocers’ Federation and Association of Convenience Stores have raised concerns that the fee will not fully cover the expense of running an RVM for some convenience stores.
However, Stephen Stothard, Business Development Manager at Aco Recycling UK, begs to differ. With over 30 years’ experience working in existing and emergent schemes, Stothard has handled RVM installations at numerous Tesco stores in Ireland.
“In Ireland, with a far lower [RVM] handling fee [2.6 cents, approx. 2.24p], most machines were paid for in full in year one,” he states.
“The grant funding and very high and generous handling fee is perfect.”
