Deposit Return Scheme (DRS) organiser, Exchange For Change, has confirmed more details surrounding the support available for independent retailers ahead of its October 2027 launch, including enhanced exemption criteria.
The DRS regulations had previously allowed for retailers in urban areas with a retail footprint of less than 100m² to be automatically exempted from operating a return point for DRS items. However, Exchange For Change has agreed an extension of the exemption criteria with regulators in all three nations, allowing for retailers with a sales area of between 100m² and 199m² in urban settings and rural retailers with less than 200m² of sales area to apply for a size-based exemption.
Further exemption allowances have also been agreed on the basis of proximity, heritage or listed building restrictions, site access or lack of access to utilities. Any exemption will be contingent on there being sufficient local provision of return points, and Exchange For Change will act as the body providing approval for exemptions.
It added that while retailers with a retail space above 200m² my apply for an exemption based on size, the new criteria will uphold a presumption against granting an exemption to those greater than or equal to 200m².
Exchange For Change has also provided more clarity on the £60m in grant funding to help up to 10,000 small, independent retailers meet the cost of installing Reverse Vending Machines (RVMs) across England, Northern Ireland and Scotland.
Grants of £6,000 will be made available per site to qualifying small, independent retailers in three annual payments of £2,000, which will be funded three months after the installation of an RVM.
Further details on how to apply for exemptions and detailed eligibility criteria for grants will be made available to retailers in Q3 2026.
Exchange For Change CEO Russell Davies, said: “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.
“Together with the Return Handling Fee, the extension to exemptions and the provision of grants for small, independent retailers is another significant milestone in our work to deliver a scheme that is fair for business and accessible and easy to use for all consumers.”
Earlier this month, clarity had been provided on the Return Handling Fee (RHF), which was structured as:
- Manual return points – 3p per container
- Automatic return points
- Tier 1 – 5p per container, up to 225,000 in-scope items returned annually
- Tier 2 – 1.3p per container, for annual in-scope returns in excess of 225,000.
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