Exchange For Change Announces Deposit Return Scheme Return Handling Fee

Exchange For Change, the industry-led organisation delivering the Deposit Return Scheme (DRS) across England, Scotland and Northern Ireland, has today confirmed the fees that will be paid to return point operators when the scheme launches in October 2027.

The Return Handling Fee (RHF) will operate on a tiered basis across manual and automatic return points, and will provide for small to large volumes of returned containers.

As a result of extensive industry consultation, engagement and research, Exchange For Change has set the RHF at:

• 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

Russell Davies, Exchange For Change CEO, said:

“We have taken onboard a wide range of feedback provided by retailers, producers and trade bodies, and established a return handling fee that reflects the complexities of the UK retail landscape and ensures the scheme remains in balance.

“The UK’s retail landscape is unique in the world, spanning large supermarket chains, medium-sized franchises and a very high ratio of small and independent convenience stores comparative to other nations.

“This means the network of return points across the UK will be extensive, and the nature of collections will range from small convenience stores manually collecting and returning a small amount of containers, through to large multinational supermarket chains operating multiple reverse vending machines that collect several thousand containers each week at every store.

“The RHF reflects this diversity in our retail sector, and delivers a fair scheme for all.”

The RHF will be reviewed early next year prior to the scheme going live, and it will continue to be reviewed annually to take account of new data available from producers and retailers, as well as to consider other relevant factors.

The annual review will use real data collected during operation of the scheme, which will build a profile of the RHF and factors that impact it, thereby ensuring the assumptions and data inputs become more robust every year.

ENDS

For more information, please contact: media@exchangeforchange.co.uk

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Q&As

What is a Return Handling Fee (RHF)?

A RHF is a payment made to retailers who operate a return point for consumers to return their in-scope beverage containers. The purpose of the RHF is to cover costs involved in purchasing equipment for the collection and storage of beverage containers, along with items such as staff training and rental value of the floor space or any other part of the premises used to collect or store returnable containers.

How was the RHF determined?

The RHF is the result of a comprehensive six-month programme involving the retailer and beverage industry. The process included multiple rounds of engagement, including data requests, methodology discussions, stakeholder workshops and consultation on proposed fee structures. Industry participants provided input at each stage of the process, including on the methodology to set the RHF, data sources, assumptions and proposed fees. The process has been detailed and evidence led, with a high level of engagement and technical consultation throughout.

Why has the RHF been structured in tiers?

The RHF has been designed specifically for the UK retail landscape, recognising that operational costs vary across a multitude of different retailer types, formats and sizes. The RHF structure reflects the collaborative work undertaken across industry over the past six months to develop a framework specifically suited to the UK market.