Exchange For Change, the industry-led organisation responsible for delivering the Deposit Return Scheme (DRS) across England, Scotland and Northern Ireland, has announced a new package of support measures designed to help retailers prepare for the scheme's launch in October 2027.

The announcement includes expanded exemption criteria for smaller retailers, alongside £60 million in grant funding to support the installation of Reverse Vending Machines (RVMs) across up to 10,000 small independent retail sites.

Under existing DRS regulations, retailers in urban areas with a retail footprint of less than 100m² are automatically exempt from operating a return point. Exchange For Change has now agreed an extension of the exemption criteria with regulators across all three nations, allowing urban retailers with a sales area between 100m² and 199m², as well as rural retailers with less than 200m² of sales area, to apply for size-based exemptions.

Additional exemptions may also be granted where businesses face constraints relating to proximity, heritage or listed building status, site access, or access to utilities.

To support participation in the scheme, Exchange For Change is making £60 million available through a grant programme for qualifying small independent retailers. Eligible businesses will be able to access grants of £6,000 per site towards the installation of an RVM, paid in three annual instalments of £2,000 following installation.

Russell Davies, CEO of Exchange For Change, said: "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.

"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."

The announcement follows the recent publication of the scheme's Return Handling Fee (RHF), which is designed to help retailers cover the costs associated with collecting and storing returned beverage containers, including equipment, staff training and the use of retail space.

Under the proposed structure, manual return points will receive a handling fee of 3p per container. Automatic return points will receive 5p per container for up to 225,000 eligible containers returned annually, and 1.3p per container thereafter.

For food and drink businesses across retail and hospitality, the latest developments provide further clarity on how the DRS will operate in practice and the support available to retailers ahead of implementation.

Isabelle McKeever, Event Manager for IFE, said: "As the industry prepares for the introduction of the Deposit Return Scheme, retailers and suppliers are looking for greater clarity around implementation, costs and operational requirements. Measures such as grant funding and expanded exemption criteria will be important in helping businesses understand their options and prepare for the changes ahead. Sustainability and circular economy initiatives continue to be a major focus across the food and drink sector, making developments like these particularly relevant for the industry."

Exchange For Change has confirmed that further information on exemption applications and grant eligibility criteria will be published during the third quarter of 2026.