Financial incentives pilot schemes

A small number of local authorities will be allowed to pilot 'revenue neutral' incentives schemes, in an effort to encourage recycling and waste reduction. Financial incentives would potentially make for a fairer system as those who do recycle would no longer be subsidising those unwilling to do so.

In addition to the environmental costs of landfill waste, the financial costs for the UK are mounting. With 60 per cent of our waste going to landfill, the cost to councils is increasing and there is a risk of fines from Europe if we do not reach waste reduction targets.

These pilot schemes do not constitute a bin tax. Any revenue generated by the scheme will be returned to residents. Steve Lee, chief executive of the Chartered Institution of Wastes Management (CIWM), comments: "Financial mechanisms have played a positive role in increasing waste prevention and recycling in other European countries and farther afield and we need to find out if they have the potential to deliver similar benefits here."