The money
What a return point actually pays
The Return Handling Fee exists because a return point is real work with real costs. It is structured in tiers rather than flat, which materially changes the answer depending on your volume.
Rate card
Published handling fees
These are the published rates. They apply per container returned through your return point.
| Return point | Rate | Band | Worked example |
|---|---|---|---|
| Manual return point | 3p per container | No threshold — every container at the same rate | 100 returns/week ≈ £156 per year |
| Automatic return point — Tier 1 | 5p per container | First 225,000 in-scope returns per year | 225,000 returns ≈ £11,250 per year at Tier 1 |
| Automatic return point — Tier 2 | 1.3p per container | Returns above 225,000 in the same year | 450,000 returns ≈ £14,175 blended per year |
Tier 1 pays 5p for the first 225,000 containers and Tier 2 pays 1.3p for everything after. A store doing 300,000 returns a year earns 225,000 × 5p + 75,000 × 1.3p = £12,225. A store doing 500,000 earns 225,000 × 5p + 275,000 × 1.3p = £14,825. Notice what that means: the extra 200,000 containers only adds £2,600 of income. High-volume sites cross into a much lower marginal rate, so the blended figure matters more than the headline when you model a large store.
Scope of the fee
What it is meant to cover
The fee is explicitly designed to help with the direct costs of operating a return point. It is not designed to make every store profitable, and the honest answer for many small stores is that it roughly breaks even before grants.
Intended to cover
- Purchasing equipment for the collection and storage of beverage containers
- Staff training
- Rental value of the floor space, or any other part of the premises, used to collect or store returnable containers
Not covered by the fee
- The cost of the 20p deposit itself — that is money you are holding and returning, not earnings
- Changes to your till or EPOS system to apply the deposit at the point of sale
- Storefitting and signage beyond what the fee is intended to cover
- Producers’ fees, which sit upstream of you in the supply chain
£60m of grant funding, £6,000 a site
Funding is available to help up to 10,000 small, independent retailers meet the cost of installing reverse vending machines across England, Northern Ireland and Scotland. It is the single biggest factor in whether a return point works for a small store.
Paid as three annual instalments of £2,000. First instalment paid three months after the RVM is installed.
- Qualification is not automatic. Detailed grant eligibility criteria are published by the scheme administrator — you will need to apply rather than assume.
- Timing matters. The first instalment follows installation by three months, so you carry the capital cost up front. Factor that into your cash planning.
- It only applies to RVMs. The grant supports machine installation, so if you have chosen a manual takeback point, it is not available to you.
- Combine with the handling fee. £6,000 spread over three years on top of 5p per container changes the payback calculation substantially for a small store.
Upstream and behind the scenes
Producer fees and VAT
Two things that are not part of your return economics but will come up in conversations with suppliers and your accountant.
0p for the first 15 months
Producer fees for all drinks containers are set at 0p for the first 15 months of the scheme, following extensive industry consultation. They will be reviewed, validated and reconfirmed in May 2027.
As a retailer you do not pay these directly. They sit with the brand owner and may be passed through in your trade terms — so watch your supplier pricing into 2028.
The administrator accounts for VAT
From scheme commencement, the scheme administrator will account for VAT on deposits that are not refunded. Businesses in the supply chain no longer account for VAT on the deposit element at each stage.
Primary legislation is being introduced in Finance Bill 2026-27. Speak to your accountant before you change how you account for deposits.
Put the numbers on your own store
Fees, grant income and your expected volumes, modelled properly. It takes about two minutes and it will tell you whether this is a good idea for your shop.