Exchange for Change Confirms Return Handling Fees for UK Deposit Return Scheme

Exchange for Change, the Deposit Management Organisation (DMO) responsible for delivering the Deposit Return Scheme (DRS) across England, Scotland and Northern Ireland, has announced the Return Handling Fees (RHF) that will be paid to retailers operating return points when the scheme launches on in October 2027.

The fees are designed to compensate retailers for the costs associated with collecting, storing and managing returned drinks containers under the scheme.

Return Handling Fees Confirmed:

The newly announced fee structure applies to both manual return points and automated return points using reverse vending machines (RVMs).

Retailers accepting containers manually will receive:

• 3p per returned container

For retailers operating reverse vending machines, a tiered fee structure will apply:

• Tier 1: 5p per container for the first 225,000 eligible containers returned annually
• Tier 2: 1.3p per container for returns exceeding 225,000 containers per year

The tiered approach reflects the differing operational costs associated with handling varying volumes of returned containers across the UK retail sector.

According to Exchange for Change, the fee structure has been developed following extensive engagement with retailers, producers and industry bodies.

The organisation says the approach recognises the diversity of the UK retail market, which ranges from small independent convenience stores manually collecting containers through to large supermarket chains operating multiple reverse vending machines.

The Return Handling Fee is intended to help cover costs such as:

• Collection and storage equipment
• Staff training
• Operational administration
• Floor space used for container returns and storage

Exchange for Change has confirmed that the Return Handling Fee will be reviewed before the scheme becomes operational and will continue to be assessed annually thereafter.

Future reviews will use real operational data generated by the scheme, helping refine assumptions and ensure fees remain appropriate as return volumes and operational costs become better understood.

The announcement provides further clarity for retailers and producers preparing for the introduction of DRS in October 2027.

Retailers considering whether to operate a return point will now be able to begin assessing the potential financial implications of participation, while producers gain greater visibility over one of the cost components that will ultimately be funded through the scheme.

The confirmation of Return Handling Fees represents another important milestone in the ongoing development of the UK Deposit Return Scheme, following the appointment of Exchange for Change as the scheme operator and the publication of scheme branding requirements earlier this year.

Businesses placing drinks containers on the market should continue monitoring DRS developments throughout 2026 and 2027, as further details are released on producer fees, registration requirements and operational guidance ahead of launch.

Clarity’s comprehensive Guide to the UK’s Deposit Return Schemes explains how DRS will operate across England, Scotland, Northern Ireland and Wales, including producer obligations, labelling requirements, exemptions and key implementation timelines.