Exchange For Change – the industry-led organisation delivering the deposit return scheme (DRS) across England, Scotland and Northern Ireland – has today (10 June) announced a package of support for retailers which includes new exemption criteria.
Ahead of the DRS coming into play in October 2027, Exchange for Change said retailers with a sales area of between 100 sq m and 199 sq m in urban settings – as well as rural retailers with less than 200 sq m of sales area – can apply for a size-based exemption from the scheme.
DRS regulations already in place allow for retailers in urban areas with a retail footprint of less than 100 sq m to be automatically exempted from operating a return point for DRS items. 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.
Furthermore, Exchange For Change announced today it is making available £60 million in grant funding to help up to 10,000 small, independent retailers meet the cost of installing reverse vending machines (RVM).
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.
Russell Davies, Exchange For Change CEO, remarked: “Retailers will play a fundamental role in transforming how we increase recycling and reduce litter in every corner of the UK through the DRS.
“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.”
He argued that, together with the return handling fee, announced last month, the extension to exemptions and grants helps support the organisation’s mission to make the DRS fair for business and accessible and easy to use for all consumers.
Exchange for Change said that while groceries retailers with a retail space above 200 sq m may apply for an exemption based on size, the new criteria will uphold a presumption against granting an exemption to those greater than or equal to that size. More details on how to apply for exemptions and detailed eligibility criteria for grants will be made available the autumn.
Travis Way, managing director at RVM company EcoVend, part of Reconomy Group, said: “With less than 18 months to go until the launch of the UK DRS, Exchange For Change is clearly accelerating preparations and providing businesses with greater certainty on what the scheme will look like in practice.
“The decision to extend exemption criteria and provide financial support for smaller retailers is a sensible decision. While many businesses are keen to play their part, the reality is that upfront costs, space constraints and cash flow considerations can present genuine challenges, particularly for independent retailers. Grant funding will help reduce those barriers and ensure smaller businesses are not disproportionately disadvantaged by the regulations.”
[image credit: Exchange for Change]
