The Fed gives a cautious welcome to handling fees for DRS

The Federation of Independent Retailers (the Fed) has responded to confirmation from Exchange for Change of the retail handling fees for those participating in DRS when it goes live in October 2027.

Exchange for Change announced today (June 2) that it intends to introduce a two-tier fee structure for those businesses taking part in the scheme.

Shops operating as manual return points will receive 3p per container, while those that have a reverse vending machine will be paid 5p per container for returns up to 225,000 per year and 1.3p for handling more than 225,000 annually.

The Fed’s National President Hetal Patel said: “The retail handling fee is a very important element of the whole scheme. While we would have preferred higher rates, the fees announced are not unexpected and we welcome certainty about what they will be.

“As a member of the advisory board for Exchange for Change, we have engaged closely with the consultation exercise and highlighted the importance of independent retailers like our members fully participating in DRS to drive up recycling rates.

“Throughout this process, we have stated that DRS must be cost-neutral for small shops and called for handling fees that help them cover their costs.”

He added: “We have some concerns about the direct and indirect costs associated with DRS – including things like capital, labour, maintenance and lost floor space.

“We await final details on key aspects like grants for those hosting reverse vending machines – which we have backed – as well as criteria around exemptions.

“There remains a lot to do for all stakeholders in retail and elsewhere to prepare ahead of the launch in Autumn next year, and we will continue to work closely with Exchange for Change to ensure DRS works for our members.”