Exchange for Change, the industry-led organisation delivering the Deposit Return Scheme (DRS), has confirmed an extension to the eligibility criteria for small retailers.
Currently, retailers in urban areas with a retail footprint of less than 100m² are automatically exempt from operating a return point for DRS items.
Exchange for Change has now confirmed that this exemption has been extended across the three nations to include retailers with a sales area of between 100m² and 199m² in urban settings, as well as rural retailers with less than 200m² of sales area.
The organisation is also making £60 million in grant funding available to help up to 10,000 small independent retailers meet the cost of installing Reverse Vending Machines (RVMs) across England, Northern Ireland and Scotland.
Grants of up to £6,000 will be available per qualifying site, paid in three annual instalments of £2,000. Funding will commence three months after the installation of an RVM.
Commenting on the support package, Exchange for Change CEO, Russell Davies, 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 is 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.”
Industry response
Responding to the news, Travis Way, managing director at Ecovend, part of circular economy specialist Reconomy, said: “With less than 18 months to go until the launch of the UK Deposit Return Scheme, 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 the exemption criteria and provide financial support for smaller retailers is a sensible one. 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.”
The Association of Convenience Stores also welcomed the news. CEO Ed Woodall, said: “Convenience retailers want to host return points in their stores and help their customers recycle, but the proposed handling payments will leave many neighbourhood retailers as net losers by not covering the costs of collecting, storing and refunding containers.
“Therefore, we welcome the extension of the exemption criteria and urge Exchange for Change to quickly clarify how retailers can apply for an exemption. It is important that this is a light-touch application process and not unnecessarily burdensome for retailers to engage with.”
