Exchange for Change has been urged to “look again” at the fees paid to retailers taking part in the UK’s deposit return scheme amid claims they will not cover the huge costs.
Yesterday the not-for-profit industry body running the scheme, announced the remuneration for retailers taking part as a return point operator.
DRS is due to launch across England, Scotland and Northern Ireland in October next year, with talks still underway over a Welsh scheme.
The body announced stores operating a manual return system would receive a flat rate of 3p per container. Those using a reverse vending machine will receive 5p (Tier 1) per container, for the first 225,000 containers each year, and 1.3p (Tier 2) for each subsequent item.
However, the Scottish retailer association, the SGF, whose legal action against the compensation due to be paid under previous pioneering DRS north of the border was seen as one of the reasons for its collapse, said it believed the fees needed to be raised.
“EFC must look again at the fee and account for the full costs of staffing, cleaning, servicing, and loss of premium floor space for all retailers, to ensure they are getting a fair settlement,” claimed SGF chief executive Pete Cheema.
“This is a major milestone for the scheme, and the most important announcement for convenience retailers to date. However, we are concerned that the fee will not fully cover the expense of running an RVM for some convenience stores.
“The intention of DRS is to be cost neutral for retailers taking part in the scheme. Retailers should be able to fully understand the costs involved and the expected returns, so that they can make an informed decision for their business.
“DRS will soon become an essential service for the communities we serve, and it’s vital that the handling fee is fair, so that our members have the opportunity to take part without having to add yet another cost burden to their business.”
Cheema added: “We very much welcome the extensive engagement that we have had with Exchange for Change throughout this process, and we are working hard to ensure that the voice of our sector is listened to.”
The fees were also criticised by the ACS, which claimed the fixed costs of providing an RVM in store was likely to run beyond £10,000 a year, meaning thousands of shops would be unable to afford to operate the scheme.
ACS chief executive Ed Woodall said: “Hosting a return point should be cost neutral for local shops, but the handling fees announced today will mean some neighbourhood convenience stores will be net losers under the deposit return scheme, or force them to run burdensome manual return points.
“Convenience retailers want to be part of the scheme and providing those services in their community, but they should not be financially punished for doing so. We hope that Exchange for Change will continue to look closely at the handling fees to optimise the network of return points for customers and all convenience retailers.”
Exchange for Change has said that that the fees will be subject to review before launch and in the months following the go live date, in October 2027.
It is also expected that more information will be provided on the details of the scheme in the coming months, including further information on the support grant for independent retailers seeking to purchase/hire an RVM, collection requirements and exemption.
Travis Way, managing director at RVM experts EcoVend, part of international circular economy specialists Reconomy, said: “The confirmation of return handling fees is another important milestone for businesses preparing for the introduction of the UK deposit return scheme. For retailers, having greater clarity on the financial framework now will help support investment decisions and operational planning ahead of the scheme’s launch in 2027.
“It is encouraging to see a tiered approach that recognises the different realities facing retailers of varying sizes and return volumes. Reflecting the distinction between manual return points and reverse vending machine operators should help ensure the scheme remains practical and accessible across a diverse retail landscape.”
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