Exchange for Change, the operator for the deposit return scheme (DRS) in England, Scotland, and Northern Ireland, has outlined proposals to support small and independent retailers with grants and possible exemptions ahead of the October 2027 rollout.
Under current regulations, retailers in urban areas with a retail space under 100m² will be automatically exempt from operating a return point. These retailers will not be required to apply for an exemption, but can choose to operate a return point.
However, Exchange for Change is now exploring additional exemption criteria that could apply to other small retailers based on the size of the premises.
This could see all urban retailers between 100m² and 199m² of sales area and rural retailers under 200m² of sales area able to apply for exemption on the basis of their physical space limitations.
However, any exemptions would be subject to approval by Exchange for Change and would be contingent on sufficient local provision of return points.
The full proposed exemption policy is currently under review by regulators across England, Northern Ireland, and Scotland. Exchange for Change aims to have more details to share on this by late May.
In addition to exemptions, the operator is developing a targeted grant scheme to support implementation. Grants will be targeted at small, independent retailers where a Reverse Vending Machine (RVM) is the most appropriate solution based on expected return volumes.
The proposed grant level is £6,000 per site, paid over three years and structured as three annual payments of £2,000. The first payment would be made approximately three months after implementation.
Exchange for Change will set aside a total of £60m to provide grants over the first three years of scheme operation.
The grant is intended to support retailers with the initial capital outlay of RVM instillation, improve the viability of participation for smaller retailers, and help ensure a “well-distributed and effective return point network”, the operator said.
“Our focus is on ensuring that a comprehensive and accessible network of return points is available to consumers and that industry has the information and support it needs to deliver a DRS that achieves our shared aims – cutting waste, boosting recycling and creating a circular economy that works for everyone,” an Exchange for Change spokesperson said.
Travis Way, managing director at RVM experts EcoVend, said the proposed exemptions framework is a “welcome and pragmatic step in recognising the operational challenges many smaller retailers face”.
He also said that the introduction of targeted financial support was “encouraging”, explaining that ”smaller businesses will need additional backing to manage upfront costs and operational considerations, especially in the early stages of the scheme”.
However, Way added: “As the scheme develops, there remains a clear need for education and guidance to support smaller businesses, which currently remains limited.
“Providing them with better information on costs, requirements, and potential benefits will be essential to help them make informed decisions and participate confidently.”
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