Size
Urban shops of 100-199 sq m and rural shops under 200 sq m can apply on size. Shops of 200 sq m or more can apply, but there's a presumption against granting it.
Grants & exemptions
Exempt, apply, or get a grant?
Most small shops fall into one of three groups: automatically exempt, able to apply for an exemption, or must take empties back (and may get help buying a machine). Here's how Exchange for Change decides. Last checked: 12 Oct 2026
In short: Urban shops with under 100 sq m of sales floor are exempt automatically and don't need to register. Urban shops of 100-199 sq m and rural shops under 200 sq m can apply for an exemption on size; others can apply on proximity to another return point or on premises grounds. Exchange for Change decides each case and hasn't yet published how to apply, so register now if you're not automatically exempt. Independents with 3 or fewer shops that must take empties back can apply for a £6,000 machine grant (3 x £2,000), with the first rounds proposed from January 2027.
Exemptions at a glance
"Retail space" is the customer-facing floor area used to sell or display products. It excludes stockrooms, offices and back-of-house. E4C criteria, p.4-5
| Your shop | Register with E4C? | Take empties back? | Can you apply for an exemption? |
|---|---|---|---|
| Under 100 sq m, urban | No | No: automatically exempt (you can opt in voluntarily) | Not needed |
| Under 100 sq m, rural | Yes | Yes, unless exempted | Yes: on size, proximity or premises grounds |
| 100-199 sq m, urban | Yes | Yes, unless exempted | Yes: on size, proximity or premises grounds |
| 100-199 sq m, rural | Yes | Yes, unless exempted | Yes: on size, proximity or premises grounds |
| 200 sq m and over | Yes | Yes, unless exempted | Proximity or premises; size only with a "presumption against" |
Source: Exchange for Change, Return Point Exemptions Criteria (June 2026), section 2.3 (p.5) and section 3.2.3 (p.10). "Urban" uses the official classification for each nation: ONS 2011 (England), NISRA 2015 (Northern Ireland), Scottish Government 2020 classes 1-2 (Scotland). Check with E4C's postcode lookup.
Wales: Exchange for Change was appointed to run the scheme in Wales in August 2026. Its published exemption criteria cover England, Scotland and Northern Ireland; Welsh details are still to come. E4C newsletter, Aug 2026
Even if you plan to apply for an exemption, you must register. Only urban shops under 100 sq m skip registration. E4C, 29 Sep 2026
The three ways to apply
Every application is decided by Exchange for Change, shop by shop. No blanket or chain-wide exemptions. E4C criteria, p.9
Proximity
For urban shops over 100 sq m and rural shops of any size. You need a non-exempt "catchment return hub" designated by Exchange for Change in the same settlement or along the usual shopping route, close enough and open at similar hours, with capacity to spare.
- No fixed distance: E4C judges it, giving more weight to rural access.
- Refused if it would leave a settlement without a return hub.
- Reviewed if the other return point closes.
Premises
Only in exceptional cases. You must show a real, site-specific constraint and that fixing it would need unreasonable building or operational changes.
- Layout: a machine would block fire exits (certified by a fire assessor), or there's no back-of-house storage. Needs scaled floor plans and independent checks.
- Design/heritage: listed or protected building, with written planning advice that works would likely be refused.
- Construction/utilities: power can't support a machine without network upgrades beyond your premises, or ventilation rules out storage.
Doesn't count: cost alone, looks, minor facade changes, minor electrical upgrades, or planning worries without written advice.
What you'll need to apply
Exchange for Change says incomplete applications are automatically refused. Have these ready: E4C criteria, p.11-12
- Your name and business name
- Address and phone number of your registered or main office, and of the shop
- Company registration number (if a company); all partners' names (if a partnership)
- A contact name and phone number, and an email address if you have one
- For proximity: where the alternative return point is
- For premises: evidence of the location, size, layout, design or construction problem (e.g. floor plans, fire assessor report, planning advice, utility letter)
How and when to apply: not published yet. Exchange for Change said details would follow "in the coming months" (29 Sep 2026). Registering now (Phase 1) is the first step, and the form asks for your "exemption intent". E4C, registration guide (PDF), p.12 Last checked: 12 Oct 2026
Notices you must display
Automatically exempt shops must show customers how their deposit can be redeemed.
Shops granted an exemption must show:
- a statement (provided by Exchange for Change) that you don't have to run a return point;
- the nearest return point and how to get the deposit back (E4C will provide a QR-code locator);
- why you're exempt (e.g. "less than 100 sq m");
- in England and Northern Ireland, how to find out more about the exemption.
Exchange for Change will issue the required notice and further details in early 2027.
How long an exemption lasts
- England and Northern Ireland: 3 years, then renew with updated evidence.
- Scotland: can be reviewed at any time.
- Any exemption can be revoked if circumstances change, with written reasons and a chance to respond or ask for a review.
Machine grants
£6,000 towards a bottle-return machine
Exchange for Change has set aside £60m for up to 10,000 small independent shops: £6,000 per site, paid as three yearly payments of £2,000, starting about three months after launch or installation. On top of this, you get the 5p/1.3p machine handling fee. E4C grants update (PDF, Oct 2026), p.2 Last checked: 12 Oct 2026
Who qualifies (first rounds)
- Independent: you run 3 or fewer shops, under your own name or a symbol group (e.g. Spar) or franchise.
- You must run a return point: rural under 200 sq m, or urban 100-199 sq m of sales area.
- One grant per business in the first rounds, even if you have several eligible shops.
- Keep it running: the machine must be available for over 90% of your opening hours, or that year's payment may be withheld.
Not eligible in the first rounds: urban shops under 100 sq m (automatically exempt), even if they opt in. You confirm the criteria yourself at registration, and buying a machine is at your own risk.
When: three rounds
| Round | Grants | Timing (proposed) |
|---|---|---|
| G1 Rural | 4,000 | Opens January 2027 with Phase 2 registration |
| G2 Urban | 4,000 | About a 3-month window; may close early or be extended |
| G3 Targeted | 2,000 + unused | From summer 2027, for shops that changed their mind, missed out or weren't successful. Its own criteria, to be set later. |
If you're successful in G1 or G2, you'll need to show proof of order before launch, or the grant goes back into G3. Estimated share by nation: England 80.8%, Scotland 9.8%, Wales 5.6%, Northern Ireland 3.8%.
Before you order: the full grant terms aren't published yet, and Exchange for Change's list of certified machines wasn't out when we last checked. Only a certified machine will be connected to the scheme. Get written quotes and avoid long contracts until the terms are clear. Equipment guide Last checked: 12 Oct 2026
Common questions
Am I exempt from taking empties back?
Urban shops under 100 sq m are exempt automatically. Urban shops of 100-199 sq m and rural shops under 200 sq m can apply for an exemption on size. Other shops can apply on proximity to another return point, or on premises grounds in exceptional cases. Exchange for Change decides each application.
Sources: E4C exemption criteria, Use the checker
How do I apply for an exemption?
The application route isn't published yet. Exchange for Change first said the third quarter of 2026, then "in the coming months" when registration opened. In the meantime, register (Phase 1) and record your exemption intent on the premises form. Incomplete applications will be refused, so gather your evidence now.
Sources: E4C, registration opens, E4C registration guide (PDF), Evidence checklist
Can I get a grant for a reverse vending machine?
Possibly. £6,000 per site, paid as 3 x £2,000 a year, for independents with 3 or fewer shops whose shop must run a return point (rural under 200 sq m, or urban 100-199 sq m). It's one grant per business, the machine must be available for over 90% of opening hours, and you need proof of order before launch. The first rounds are proposed from January 2027.
Sources: E4C grants update (PDF), Grant details
How much does a reverse vending machine cost?
There's no official price. Trade press estimates run from about £10,000-£12,000 for a small machine to £50,000-£60,000 for a large one, with other estimates of £12,000-£20,000 for smaller models. Check running costs too: when Scotland's scheme was cancelled in 2023, some shops were left with contracts of nearly £4,000 a year.
Sources: Better Retailing, Better Retailing, BBC, Getting a quote