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.”

The Fed welcomes new law to tackle retail crime

After years of campaigning and lobbying the government to make a serious commitment to tackling retail crime, the Federation of Independent Retailers (the Fed) is pleased to see that the Crime and Policing Bill has finally received Royal Assent and is now established in law.

As a trade organisation representing more than 8,000 smaller retailers, the Fed has relayed to politicians and police and crime commissioners time and time again that retail crime, including violence, theft and harassment, are of deep concern its members – more so now than ever.

Despite a small reduction in the number of recorded shoplifting offences, the latest figures released by the Office for National Statistics (ONS) on April 23 remain shocking, with 509,566 recorded offences in the year ending December 2025.

The Fed’s National President Hetal Patel said: “Theft is traumatic for shopkeepers and their staff, and a social blight. But it also imposes a series of direct and indirect economic costs for shops in terms of lost stock and expensive security measures, which undermine their financial viability.

“For these reasons, the measures contained within the Act, particularly the removal of the ridiculous £200 threshold for theft and the introduction of a standalone offence of assaulting a shopworker – with a possible prison sentence of six months – are welcome and long overdue.

“More broadly, we will continue to call for more active intervention from Community Policing teams, so that these issues are taken more seriously and that shoplifting is no longer widely regarded as a victimless crime.”

He added: “For too long, there has been a lack of police presence in communities, giving thieves and those who indulge in anti-social behaviour carte blanche to carry on unpunished.

“Therefore, the government’s Neighbourhood Policing Guarantee to deliver an additional 13,000 neighbourhood officers by the end of this parliament is another positive step.”

The Home Office says the new powers for police and the wider criminal justice system will help realise this government’s mission to restore confidence in policing.

Mr Patel said: “What independent retailers want to see now is effective, direct action to curb the scourge of retail crime, and the police and courts to carry out the measures in the Crime and Policing Act to prosecute and deter criminals.

“We will continue to work closely with the government on the application of measures in the Act and push for targeted retail security grants to be introduced, so that small retailers can afford expensive security enhancements like next generation CCTV and other measures to keep their shops secure.”

The Fed Continues call for Faster Application of DRS in Wales

The Fed’s President in Wales, Mark Dudden, has added his voice to calls for faster action implementing a Deposit Return Scheme (DRS) for recycling in Wales and for the adoption of a Deposit Management Organisation (DMO) which can administer it.

With the Welsh Senedd election due next week, the Fed has written to the current Government Minister responsible, Huw Irranca-Davies and his officials urging the appointment of a DMO which can administer the scheme and deal with the various technical questions involved in implementing DRS. The sole applicant for the DMO, Exchange for Change, was rejected in its application earlier in April and the new application process will carry on until June.

Mark Dudden commented: “The Fed has actively engaged in the implementation of DRS, serving on the Advisory Board of the DMO covering the rest of the UK, but we feel for it to work it must have full interoperability with the rest of Britain and Northern Ireland.

“As we have also made clear in our manifesto for the election, launched in January, the Fed also has concerns that adding glass to the mix will make it hard for small shops – and ultimately make the best the enemy of the good, undermining the Welsh scheme as a whole. Whoever takes on responsibility for running it, we hope a new DMO can be put in place as soon as possible to ensure clear communication and support for Welsh retailers when DRS is launched in just less than 18 months.”

Leicester East MP vows to back Fed members

Leicester East MP Shivani Raja has pledged to support independent retailers who are suffering from rising business rates, illicit tobacco, and surging crime following a meeting this month (Thursday, April 16) with a delegation of members from the Federation of Independent Retailers (the Fed).

Ms Raja, who has represented the constituency since the last General Election almost two years ago, offered to deliver a letter from Leicester retailers highlighting these concerns to the Chancellor Rachel Reeves.

Fed members attending the meeting at her constituency offices were included East of England district president Jital Patel, Sunil Patel, Parth Patel, Rinku Patel and Hetal Patel. All have shops in Leicester. Fed members development executive Kully Kumar and political engagement coordinator Douglas Oliver were also in attendance.

During the meeting, Hetal Patel spoke about the new measures being introduced in the Tobacco and Vapes Bill and the rising cost of tobacco and the lack of resourcing provided by central government to help support legitimate retailers. The Fed team had said that they had raised these concerns in conversation with the Home Office and in correspondence with the Leicester PCC, but that challenges remained.

Parth Patel highlighted the impact of rising business rates bills which had controversially increased in April as the revaluation of properties – which sets the bills – had taken effect. Mr Patel added: “After operating for the last 35 years in the city, providing vital services, we might not survive another five years.”

Sunil Patel said: “Speaking as someone who first began as a retailer in Leicester more than 40 years ago, this is one of the toughest times I can remember and every retailer I know is reporting challenges because the cost of living squeeze is hitting our customers and because energy costs and taxes going up mean that our own costs are rising.”

Commenting on her Facebook page about the meeting, Ms Raja said: “These retailers are small businesses that make all the difference in our day-to-day lives, strengthening our local economy and playing a vital role in keeping our communities connected, supported, and thriving.”

Jital Patel said: “I look forward to working with Shivani in support of the Fed future. We were very pleased to explain the commercial benefits of Fed membership and we look forward to inviting her to visit some of our local businesses, as well as our Leicester trade show in October.”

Fed Members Featured in Newsnight Discussion on Retail Crime

Fed Members Vince and Fiona Malone have again been interviewed on BBC Newsnight the continuing problems with retail crime on the same day that Government data again highlighted high levels of theft in shops.  The interview came as BBC reporting highlighted problems with illegal drug use on the High Street and problems with rogue trade on the High Street.

Thursday’s interview with Mr and Mrs Malone came 18 months after they were previously interviewed by Newsnight in 2024 when they reported theft was causing their business in Tenby in West Wales “about £26k annually, roughly £500 every week”.

Whilst they say theft rates had fallen significantly since the installation of a CCTV and AI tool which cost them about £13,000. Mr Malone said: “We are under no illusion that theft has stopped… there is a problem of social acceptance”.

Mrs Malone also spoke about the challenges of confronting shoplifters and the need to challenge shoplifters “as they need to know it is wrong – last year Vince was punched in the face and the shoplifter asked why it was wrong as shoplifting was a victimless crime.”

Despite the marginal fall in shoplifting reported in ONS Government data yesterday, the Fed’s National President has called for further action to be taken to control it further.

Meanwhile, the Fed has continued to call for more action on shoplifting and for society to better recognise the human nature of theft because of the emotional toll it plays on retailers, whilst undermining their economic viability, leading to wider inflation in shopping costs for small businesses.

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