Exchange For Change plans to allocate £60 million in grants over the first three years of the UK’s Deposit Return Scheme (DRS) to support small, independent retailers with the rollout of reverse vending machines (RVMs).

The proposed funding scheme will provide £6,000 per site, distributed over three years in annual payments of £2,000. The first instalment is expected to be paid around three months after implementation.

The grants are intended to help offset the upfront cost of installing RVMs, which the organisation identified as a key barrier for smaller retailers. The funding will be provided in addition to the Return Handling Fee.

The grant scheme forms part of a wider set of measures aimed at balancing accessibility of return points with operational practicality for businesses.

As part of its proposed framework, Exchange For Change said urban retailers with a sales area below 100 square metres will be automatically exempt from operating a return point. Other retailers may also be able to apply for exemptions where space, layout, infrastructure or health and safety constraints make hosting a return point impractical, provided local access is not affected.

Urban stores between 100-199 square metres, as well as rural retailers under 200 square metres, are expected to be eligible to apply for exemptions based on physical limitations. Any exemptions would require approval and depend on sufficient local return point coverage.

The proposals are currently under review by regulators across England, Northern Ireland and Scotland, with further details on eligibility criteria, application processes and operational requirements expected in the coming weeks.