Exchange for Change has confirmed the return handling fee for the upcoming deposit return scheme across Scotland, England and Northern Ireland, giving retailers greater clarity on how they will be compensated for operating container return points. The fee, known as the RHF, is designed to cover the cost of collecting, storing and managing beverage containers returned by consumers under the scheme.

The confirmation marks an important step in the development of the UK’s DRS infrastructure. While deposit return schemes are often discussed from the consumer perspective, their success depends heavily on the retailers that host return points. These businesses must manage space, staff time, equipment, storage and logistics while continuing normal store operations.

Exchange for Change said the RHF will operate on a tiered basis, reflecting the wide variation in return volumes across the retail market. Manual return points will receive 3p per container. Automatic return points will receive 5p per container for up to 225,000 in-scope items returned annually, while returns above that threshold will be compensated at 1.3p per container.

The structure recognises that a small convenience store manually handling containers faces very different operational pressures from a large supermarket running several reverse vending machines.

The UK retail landscape is highly diverse, with major supermarket chains, medium-sized franchise groups and a large number of independent convenience stores. This makes the design of a fair return handling fee particularly complex. A one-size-fits-all model could risk overcompensating some sites while failing to support others that face higher relative costs.

For small retailers, manual return handling may involve limited space and more direct staff involvement. Containers must be accepted, checked, stored and prepared for collection, often in stores where back-of-house capacity is already under pressure. A fixed per-container payment helps recognise these additional responsibilities and supports participation in a broad return network.

For larger stores, automatic return points are likely to use reverse vending machines capable of handling higher volumes. These systems can improve consumer convenience and reduce manual handling, but they also require investment, installation space, maintenance, power, servicing and integration into store operations. The tiered RHF is intended to support both lower-volume and high-volume return environments.

• Manual return points: 3p per container returned.
• Automatic return points, tier 1: 5p per container up to 225,000 annual in-scope returns.
• Automatic return points, tier 2: 1.3p per container above 225,000 annual in-scope returns.

Exchange for Change CEO Russell Davies said the organisation had considered feedback from retailers, producers and trade bodies before setting the fee. He noted that the RHF reflects the complexity of the UK market and is intended to keep the scheme in balance across different retail formats and return volumes.

The fee will be reviewed early next year before the scheme goes live and will continue to be reviewed annually. This is important because real-world data from producers and retailers will provide a clearer picture of container flows, return rates, equipment performance and operational costs once the system begins operating at scale.

For the packaging sector, the RHF is more than a retail payment mechanism. It is part of the economic architecture needed to make circular beverage packaging work. Deposit return schemes aim to increase collection rates for drinks containers, improve material quality and support higher-value recycling. To achieve that, the system must be convenient for consumers and commercially workable for the businesses that receive returns.

The confirmed RHF gives retailers, producers and packaging stakeholders a clearer framework for planning. It supports investment decisions around return point infrastructure, reverse vending technology, storage systems and logistics coordination. It also signals that implementation is moving from policy design into operational detail.

As the UK prepares for DRS rollout, the balance between fairness, convenience and cost control will be critical. A successful scheme will need high consumer participation, reliable collection infrastructure and strong cooperation between retailers, producers and system operators. The return handling fee is therefore a key tool in building the practical foundation for a more circular beverage packaging system.

Image concept: a UK supermarket and convenience store deposit return point showing consumers returning bottles and cans, reverse vending machines, manual collection bins and a visual flow of containers moving into recycling.