Exchange for Change Confirms Retailer Support Package for UK Deposit Return Scheme

Exchange for Change has confirmed a package of retailer support measures ahead of the launch of the Deposit Return Scheme (DRS) in England, Scotland and Northern Ireland.

They include exemption routes for some retailers, alongside £60 million of grant funding to support the installation of reverse vending machines (RVMs) in smaller stores.

The UK DRS is due to launch in October 2027 and will apply to eligible drinks containers. Retailers will have a key role in the scheme, either by operating a return point or, where applicable, applying for an exemption.

Under the DRS regulations, retailers in urban areas with a retail footprint below 100m² are automatically exempt from providing a return point.

Exchange for Change has now confirmed further size-based exemption options. These will apply to:

• urban retailers with a sales area between 100m² and 199m²
• rural retailers with a sales area below 200m²

Additional exemption routes have also been agreed where specific practical constraints apply. These include proximity to another return point, restrictions linked to heritage or listed buildings, access limitations, and lack of access to utilities.

The exemptions are intended to help retailers assess how they are best able to participate in the scheme, taking into account the size, location and practical circumstances of individual sites.

Exchange for Change has also confirmed that £60 million will be made available to support smaller retailers with the cost of installing reverse vending machines.

The funding is expected to support up to 10,000 small, independent retailers across England, Scotland and Northern Ireland.

Eligible retailers will be able to receive £6,000 per site. This will be paid in three annual instalments of £2,000, with payments expected to begin around three months after the RVM has been installed.

The grant funding is designed to help with the upfront costs of installing RVM equipment and will be provided in addition to the Return Handling Fee.

The support package follows confirmation of the Return Handling Fee (RHF), which will be paid to retailers operating return points.

Manual return points will receive 3p per eligible container returned.

For retailers using reverse vending machines, the fee will be paid on a tiered basis:

• 5p per container for up to 225,000 eligible containers returned each year 1
• 3p per container for volumes above 225,000 eligible containers per year

The RHF is intended to contribute towards the costs associated with running a return point. This may include collection equipment, storage space, staff training and the use of retail floor space.

The package provides further detail on how retailers may be supported under the DRS framework.

Retailers will need to consider whether they are required to provide a return point, whether they may qualify for an exemption, and whether installing an RVM is appropriate for their site.

For smaller retailers, the combination of exemption options, grant funding and the Return Handling Fee may help inform decisions ahead of the scheme’s launch in October 2027.

Businesses affected by DRS should continue to monitor guidance from Exchange for Change and the relevant regulators as further operational details are confirmed.