Speaking in the House of Commons, Circular Economy Minister Mary Creagh said businesses would face transition costs of just over £1.5 million between 2026 and 2029 as they adapt to the new system, alongside software costs estimated at under £39 million over a 15-year period.
The costs form part of the government’s wider push to digitise waste regulation and crack down on waste crime, with ministers arguing that the financial burden will be outweighed by long-term savings and improved enforcement.
Creagh told MPs that the savings from removing quarterly waste return requirements, combined with reductions in waste crime, are estimated to total nearly £600 million over the same 15-year appraisal period.
She said: “As the illegal businesses – the criminals – leave the industry, there will be reduced unfair competition, more waste for the compliant operators and increased revenue.”
Digital Waste Tracking
A voluntary beta version of the service went live earlier this year, ahead of its full mandatory introduction.
Creagh said the government had deliberately taken a phased approach to implementation.
She added: “The system is in beta testing because I believe in making haste slowly.
“I do not believe in big-bang changes. I believe in working with a coalition of the willing to test, refine and improve.”
Alongside the wider transition costs, operators of permitted waste facilities will also pay an annual fee of £26 to use the system.
The charge will apply to charities, local authorities and commercial operators carrying out permitted waste activities, and is intended to recover the cost of establishing, operating and maintaining the service.
According to the minister, this includes the digital platform build, ongoing hosting costs and operation of the user helpdesk through the Environment Agency.
Creagh said the fee had been calculated by spreading projected service costs over a ten-year period across the total expected user base, meaning early adopters would not pay more than those joining later.
The service charge will be reviewed once the system is fully operational and the government has more accurate data on how many operators are using it.
Find out more at the Digital Waste Tracking Conference 2026 on 20 October 2026 in London.
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