Deposit return scheme bosses have announced thousands more retailers will be allowed to opt out of the scheme, as part of a package of measures to smooth the path to next year’s launch.
DRS management organisation Exchange for Change has also outlined details of new grants to help retailers shoulder the cost of rolling out reverse vending machines (RVMs).
Exchange for Change said it hoped the measures, which follow last week’s release of the scheme retail handling fees, will increase the chances of the October 2027 launch going as planned.
Retailers in urban areas with a retail footprint of less than 100 sq m are already automatically exempt from operating a return point for DRS items.
However, Exchange for Change said it had agreed to extend the exemption criteria with regulators in all three nations, allowing for retailers with a sales area of between 100 sq m and 199 sq m in urban settings and rural retailers with less than 200 sq m 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.
Meanwhile, Exchange for Change is making available £60m in grant funding to help up to 10,000 small, independent retailers meet the cost of installing 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.
The grants come after Exchange for Change revealed a tiered compensation structure for retail handling fees for retailers taking part in the scheme last week.
The body said it has spent six months consulting with the retail and beverage industries to try to avoid the huge row that previously erupted in Scotland over the cost of the scheme and which helped to derail the proposals.
“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,” said Exchange for Change CEO Russell Davies.
“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.”
| Retailer Size | Location | Registration Required? | Return Point Obligation | Exemption Available? |
|---|---|---|---|---|
|
Under 100m² |
Urban |
No: automatically exempt |
No obligation to operate a return point |
N/A – Automatic exemption applies |
|
Under 100m² |
Rural |
Yes: must register |
Must operate a return point |
Yes, if criteria are met* |
|
100m² and over. |
Urban or Rural |
Yes: must register |
Must operate a return point |
Yes, if criteria are met* |
* Exemption criteria
- Proximity-based exemption will be granted if adequate coverage within reasonable proximity is available, and Exchange for Change is satisfied that those premises are willing to accommodate the increased volume, based on an assessment against the criteria set out in this section.
- Premises-based exemption if it is not possible or not reasonable to host a return point due to characteristics of your business.
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