The scheme administrator said the fee structure has been developed following six months of consultation, engagement and technical analysis involving retailers, producers and trade bodies.
A return handling fee is the payment made to retailers that accept used drinks containers from consumers through the DRS.
The fee is intended to cover the costs associated with operating a return point, including the purchase of collection equipment, storage of returned containers, staff training and the use of retail floor space once the scheme launches in England, Scotland and Northern Ireland in October 2027.
Tiered return handling fee system
Exchange for Change has confirmed that manual return points will receive a fee of 3p per container returned.
For retailers operating reverse vending machines (RVMs), the RHF will be paid on a tiered basis.
Automatic return points will receive 5p per container for up to 225,000 eligible containers returned annually, with a fee of 1.3p per container applying to volumes above that threshold.
The scheme administrator said the structure had been designed specifically to reflect the UK’s diverse retail landscape, where operational costs and return volumes vary significantly between different store formats and sizes.
Russell Davies, CEO of Exchange for Change, commented: “The UK’s retail landscape is unique in the world, spanning large supermarket chains, medium-sized franchises and a very high ratio of small and independent convenience stores comparative to other nations.
“This means the network of return points across the UK will be extensive, and the nature of collections will range from small convenience stores manually collecting and returning a small amount of containers, through to large multinational supermarket chains operating multiple reverse vending machines that collect several thousand containers each week at every store.
“The RHF reflects this diversity in our retail sector, and delivers a fair scheme for all.”
Fees for Deposit Return Scheme
The announcement provides further detail on the financial framework underpinning the DRS, following recent confirmation that consumers will pay a flat 20p deposit on all in-scope drinks containers and that the scheme will operate under the “Exchange for Change” brand.
Return handling fees are a key component of deposit return systems internationally, helping to ensure retailers are compensated for the operational costs associated with collecting empty containers.
The level of the fee can have a significant impact on retailer participation, network accessibility and the overall efficiency of the scheme.
The organisation said the RHF will be reviewed before the scheme goes live and will continue to be assessed annually thereafter. Future reviews will draw on operational data collected through the scheme, allowing assumptions and cost models to be refined over time.
Exchange for Change said this approach would help ensure the fee remains appropriate as more evidence becomes available from producers, retailers and the operation of the DRS itself.
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