Exchange For Change, the industry-led organisation delivering the Deposit Return Scheme (DRS) across England, Scotland, and Northern Ireland, has officially confirmed the Return Handling Fees (RHF) that will be paid to return point operators when the scheme launches in October 2027.
As detailed in their latest announcement, the framework establishes a tiered payment structure designed to account for the variation in operational costs across different retail sizes and formats.
The RHF is intended to cover the specific costs incurred by retailers, including purchasing collection and storage equipment, staff training, and the rental value of the floor space or premises utilised for the scheme. The rates have been set as follows:
The scheme itself will cover drinks containers made from PET plastic, steel, and aluminium sized between 150ml and 3 litres.
The announcement of the 3p manual return handling fee is particularly relevant to smaller rural retailers. This baseline rate provides the clarity needed to help these businesses evaluate whether to operate a manual take-back system or look at investing in an automated Reverse Vending Machine (RVM).
To support smaller, independent retailers in making this transition, Exchange For Change has shared details on targeted financial support. A proposed grant scheme has set aside £60m to fund smaller retailers over the first three years of operation. The proposed grant level is £6,000 per site, which would be paid out in annual installments of £2,000 for three years, beginning three months after the scheme is implemented.
For small stores where hosting a return point presents severe structural challenges, Exchange For Change is actively discussing final exemption criteria with regulators. These additional exemption conditions will be based on specific criteria, including difficulty hosting a return point, utility limitations, and close proximity to alternative local return points.
With Exchange For Change noting that clarity on the Return Handling Fee, grants, and exemptions is crucial for operational planning, retailers must begin assessing their store setups and financial strategies immediately. Decisions need to be made soon regarding whether a manual or automated route is the most appropriate solution for each individual site.
Exchange For Change has stated that the RHF will undergo an initial review early next year prior to the scheme going live, followed by annual reviews that utilise real operational data to ensure the framework remains robust. More specific details on the grant applications and exemption criteria are expected to follow in the coming weeks.
