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Source: Getty/Monty Rakusen

£60m in grant funding will help up to 10,000 small, independent retailers meet the cost of installing Reverse Vending Machines

Exchange For Change, the organisation delivering the Deposit Return Scheme (DRS) across England, Scotland and Northern Ireland, has today confirmed that a greater number of retailers will be able to choose whether to operate a return point.

The DRS regulations, which come into force in October 2027, already allowed for retailers in urban areas with a retail footprint of less than 100m² to be automatically exempted from operating a return point for plastic bottles and cans.

Now Exchange For Change has agreed an extension of the exemption criteria for 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.

Exchange For Change describes this latest announcement as part of “a package of targeted support for retailers”.

This includes making available £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.

Last week Exchange For Change also revealed details of the Return Handling Fee (RHF), which is structured into tiers “to take account of the diversity in the UK’s retail landscape”.

Retailers with manual return points are to be paid 3p per container. And those with automatic return points will receive 5p per container, for up to 225,000 in-scope items returned annually; and 1.3p per container, for annual in-scope returns in excess of 225,000.

Russell Davies, Exchange For Change CEO says he recognises the role retailers have in increasing recycling rates and reducing litter: “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,” he says.

“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,” he adds.

Further details on how to apply for exemptions and detailed eligibility criteria for grants will be made available in Q3 2026.