Exchange for Change has unveiled a package of support measures designed to help retailers prepare for the introduction of the Deposit Return Scheme.

The deposit management organisation said the support arrangements, developed in collaboration with regulators in England, Scotland and Northern Ireland, aim to give retailers flexibility in deciding how they take part in the DRS.

Current regulations already exempt urban retailers with a retail footprint below 100 square metres from the requirement to provide a return point for eligible drinks containers. Exchange for Change has now confirmed that exemption eligibility will be widened.

Urban stores with sales areas between 100 and 199 square metres will be able to apply for size-related exemptions, while rural retailers with less than 200 square metres of selling space will also have access to the same route.

Further exemption criteria will cover circumstances such as being located close to another return point, operating from listed or heritage properties, having restricted site access, or lacking the utilities needed to support return infrastructure.

Russell Davies, Chief Executive of Exchange for Change, commented: “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.”

---

Grants to Hit 10,000 Small Retailers

Along with the revised exemption arrangements, Exchange for Change announced a £60 million grant programme to assist smaller retailers with the installation of reverse vending machines.

The funding pot is expected to benefit as many as 10,000 independent stores across England, Scotland and Northern Ireland.

Eligible retailers will be able to claim grants worth £6,000 for each participating site, with the money distributed in three annual payments of £2,000.

According to Exchange for Change, each payment will be issued three months after an RVM has been installed.

The grants are designed to offset the initial costs associated with introducing reverse vending technology and will sit alongside the Return Handling Fee (RHF) available to participating retailers.

Earlier this month, Exchange for Change confirmed the RHF rates that will apply once the DRS is operational. Manual return points will receive 3p for every eligible container collected.

Retailers using reverse vending machines will receive payments based on annual volumes.

A fee of 5p per container will apply to the first 225,000 eligible containers processed each year, with returns above that level attracting a payment of 1.3p per container.

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.

Exchange For Change has introduced details of an exemptions policy relating to reverse vending machines (RVMs) as part of the UK’s Deposit Return Scheme (DRS).

Under the proposed rules, shops in urban locations with a retail footprint smaller than 100 square metres will automatically be excused from the requirement to provide a return point. These businesses will not need to submit an application for exemption, though they may still choose to install a return facility if they wish.

Exchange For Change explained: “The Deposit Return Scheme is designed to ensure a comprehensive and accessible network of return points across the UK.

“At the same time, we recognise that a uniform approach would place disproportionate burdens on some retailers without necessarily enhancing scheme accessibility or improving return rates.

“The exemptions framework is therefore intended to balance accessibility for consumers with operational practicality for businesses.”

---

Further Exemption Criteria in Development

In addition to the automatic exemption for the smallest urban stores, Exchange For Change is working on broader eligibility criteria that would allow other retailers to request exemptions.

Factors likely to be considered include how close a shop is to alternative return locations and whether installing an RVM is practical. This may involve assessing available space, store layout, potential health or hygiene concerns, building restrictions (including heritage considerations), and access to necessary utilities.

Current proposals suggest that urban shops with floor space between 100m² and 199m², as well as rural retailers under 200m², could qualify for exemptions if they can demonstrate such constraints.
Any approvals would depend on maintaining sufficient return point coverage in the surrounding area and would require sign-off from Exchange for Change.

---

Financial Support for Smaller Stores

The organisation has also announced plans to offer financial assistance to retailers that are still required to operate return points.

This support will focus on smaller independent shops where installing an RVM is considered the most suitable option based on expected usage.

The proposed funding amounts to £6,000 per location, paid over three years in annual instalments of £2,000.

To fund the initiative, Exchange for Change intends to set aside £60 million during the first three years of the scheme. This funding will be provided in addition to the standard Return Handling Fee.

According to the scheme administrator, the grants are designed to help offset the upfront cost of installing RVMs, make participation more viable for small businesses, and ensure return points are evenly distributed.

---

View our previous Exchange For Change story here: 'Exchange For Change Standards for DRS Branding [24.02.2026]'