Exchange For Change, the organisation responsible for delivering the UK's forthcoming Deposit Return Scheme (DRS), has announced a new package of retailer support measures, including expanded exemption criteria and £60 million in grant funding, ahead of the scheme's planned launch in October 2027.

The measures are designed to help retailers prepare for the introduction of the DRS across England, Scotland and Northern Ireland, under which consumers will pay a refundable deposit on eligible drinks containers.

Under existing regulations, retailers in urban areas with a retail footprint of less than 100 square metres are automatically exempt from operating a return point for DRS containers. Exchange For Change has now secured agreement from regulators in all three nations to broaden the exemption criteria.

The changes will allow urban retailers with a sales area of between 100 square metres and 199 square metres, as well as rural retailers with less than 200 square metres of sales space, to apply for a size-based exemption.

Additional exemptions may also be granted where factors such as proximity to another return point, heritage or listed building restrictions, site access limitations or a lack of utilities make participation difficult.

Alongside the expanded exemptions, Exchange For Change has committed £60 million in grant funding to support the installation of Reverse Vending Machines (RVMs) at up to 10,000 small independent retail sites across England, Scotland and Northern Ireland.

Eligible retailers will be able to access grants worth £6,000 per site, paid in three annual instalments of £2,000 following the installation of an RVM.

According to Exchange For Change, the funding is intended to help smaller retailers manage the costs associated with participating in the scheme and operating automated return points.

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 publication of the scheme's Return Handling Fee (RHF) structure last week. Under the framework, manual return points will receive 3p per container returned, while automated return points will be compensated according to annual return volumes.

Retailers operating automated return points will receive 5p per container for up to 225,000 eligible containers returned annually. Returns above that threshold will attract a fee of 1.3p per container.

The RHF is intended to help retailers recover costs associated with collecting and storing returned containers, including equipment purchases, staff training and the use of retail floor space.

Exchange For Change said the expanded exemption criteria are intended to provide greater flexibility for retailers while ensuring sufficient local return point coverage for consumers. The organisation will be responsible for assessing and approving exemption applications.

While grocery retailers with more than 200 square metres of retail space will still be able to apply for exemptions, the new framework maintains a presumption against granting exemptions to stores of that size or larger.

Further details on grant eligibility and the exemption application process are expected to be published during the third quarter of 2026.