Exchange for Change has announced the return handling fees (RHFs) that retailers will receive for collecting beverage containers under the UK’s forthcoming Deposit Return Scheme (DRS).
According to the scheme administrator, the fee model was developed through a six-month process involving industry consultation, stakeholder engagement, and detailed technical assessment with retailers, producers, and trade organisations.
The RHF is designed to reimburse retailers for the costs incurred when accepting empty drinks containers returned by consumers through the DRS.
These payments are intended to offset expenses such as purchasing collection equipment, storing returned containers, training employees, and allocating retail space to support the scheme when it launches across England, Scotland, and Northern Ireland in October 2027.
Tiered Payment Structure Introduced
Exchange for Change confirmed that retailers operating manual return points will receive 3p for every eligible container returned.
Businesses using reverse vending machines (RVMs) will be compensated through a tiered fee structure.
Automatic return points will earn 5p per container on the first 225,000 eligible items collected each year. Any returns above that volume will attract a reduced fee of 1.3p per container.
The organisation explained that the payment framework was created to accommodate the wide range of retail formats across the UK, recognising that operating costs and collection volumes differ significantly between small stores and larger retailers.
Russell Davies, CEO of Exchange for Change, commented: “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 compared to other nations.
“This means the network of return points across the UK will be extensive, and the nature of collections will range from small convenience stores manually collecting and returning a small amount of containers, through to large multinational supermarket chains operating multiple reverse vending machines that collect several thousand containers each week at every store.”
Davies added that the fee model has been designed to reflect these differences and provide an equitable approach for retailers of all sizes.
Financial Framework for the Deposit Return Scheme
The announcement provides additional clarity on the funding structure of the DRS. It follows recent confirmation that consumers will pay a standard 20 pence deposit on all eligible drinks containers and that the scheme will operate under the Exchange for Change brand.
Exchange for Change also stated that the RHF levels will be reviewed before the scheme becomes operational and reassessed annually thereafter.
Future evaluations will use real operational data gathered through the DRS, allowing assumptions and cost calculations to be adjusted as more evidence becomes available.
The organisation believes this process will help ensure the fee structure remains appropriate and responsive to the experiences of producers, retailers, and scheme operators.
