UK Deposit Return Scheme (DRS) operator Exchange For Change has proposed a targeted grant scheme to help small, independent retailers cover the upfront costs of installing reverse vending machines (RVMs).
It is understood a total of £60m has been earmarked for grants over the first three years of the scheme, with the funding to be paid in three annual instalments of £2,000. The first payment is set to be due about three months after rollout, and sits alongside the Return Handling Fee.
The grant is aimed at outlets where an RVM is considered the most appropriate solution based on expected return volumes.
Exchange For Change said the deposit return scheme would “support retailers with the initial capital outlay of RVM installation, improve the viability of participation for smaller retailers, and help ensure a well-distributed and effective return point network.”
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Retailers in urban areas with less than 100m² of sales space would automatically be exempt from hosting a return point, although they could opt in.
Meanwhile, additional exemption conditions are being explored, including proximity to other return points, space and layout constraints, health and safety, building restrictions, and utilities limitations.
Responding to the news, the Association of Convenience Stores (ACS) welcomed the deposit return scheme grant but stressed that participation must be cost-neutral.
ACS Chief Executive Ed Woodall said: “It is essential that local shops are not penalised for hosting return points, so we welcome the introduction of grants for the smallest retailers and a more proportionate approach to exemptions.
“Retailers need clarity on the net costs of the scheme to be able to make a decision on how they take part. If grants and handling fees are not set at the right level, the scheme risks failing not just the retailers expected to deliver it, but the communities they serve, by undermining convenient access for consumers to recycle containers and redeem deposits.”
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