UK Deposit Return Scheme handling fees announced for return point operators

Exchange For Change has announced the return handling fees that will be paid to return point operators under the Deposit Return Scheme (DRS) set to launch across England, Scotland and Northern Ireland in October 2027.

The fees are designed to support both manual and automated return locations and will be applied using a tiered structure based on the volume of containers processed.

Under the proposed model, operators of manual return points will receive 3p for each eligible container returned.

For automated return points, a two-tier system will apply. A fee of 5p per container will be paid on the first 225,000 eligible items returned annually, while containers processed above this threshold will attract a fee of 1.3p each.

According to Exchange For Change, the fee structure has been developed following consultation, research and engagement with stakeholders across the supply chain.

The confirmation of Return Handling Fees is another important milestone for businesses preparing for the introduction of the UK Deposit Return Scheme. For retailers, having greater clarity on the financial framework now will help support investment decisions and operational planning ahead of the scheme's launch in 2027.

It is encouraging to see a tiered approach that recognises the different realities facing retailers of varying sizes and return volumes. Reflecting the distinction between manual return points and reverse vending machine operators should help ensure the scheme remains practical and accessible across a diverse retail landscape.

The commitment to review fees before launch and on an ongoing basis will also be important. As businesses gain experience of operating within the scheme, it is vital that the fee structure continues to reflect real-world costs and supports high levels of participation, helping to deliver the strong return rates needed to create a more circular economy.

Travis Way, managing director at RVM experts EcoVend, part of international circular economy specialists Reconomy.

The organisation has also confirmed that the return handling fee will be reviewed before the scheme becomes operational and will subsequently be reassessed on an annual basis. Future reviews will draw on operational data collected from producers and retailers, alongside other relevant factors, with the aim of ensuring that the fee structure reflects actual scheme performance and evolving market conditions.

The Deposit Return Scheme is scheduled to come into effect in October 2027 and will introduce a nationwide system for the collection and return of eligible beverage containers.