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Local authorities demand changes to recycling credits system

Local authorities have called for changes to be made to the way that recycling is funded in councils in English counties.

Both the Local Government Association and the Local Authority Recycling Advisory Committee have said changes must be made to the recycling credits system to improve the joint working between councils in two-tier areas.

The two organisations were responding to the government's consultation on possible changes to the recycling credits system, which closed on Friday. Recycling credits are the funds paid by waste disposal authorities (WDAs) to their collection authorities allowing savings in disposal costs to be passed back to cover the extra costs of recycling collections.

The LGA said in its response that recycling credits provide no financial benefit to waste disposal authorities (WDAs) when recycling rates increase among their waste collection authorities (WCAs). And, it said the system needs to be reformed to take account of rising disposal costs.

Partnership
At the same time, the Association said that WCAs do need the income that recycling credits provide. The LGA suggested that the best way forward might be to phase out credits entirely and move towards a formalised system partnership approach between county councils and district councils.

The Association said: “The LGA believes that, ultimately, credits could be phased out, with a move towards formal joint working, and pooling of budgets and targets, i.e. a single waste authority where groups of authorities agree that it is the way forward.”

LARAC, meanwhile, said the recycling credits system is “outdated and no longer relevant to many WCAs”. The Committee shared many of the LGA's views, that a new system needs to be brought in to improve partnerships between collection and disposal authorities.

Chair Andy Doran said: “It is a fact that WCAs today use the income they receive through the credit system to maintain their recycling activities. However, LARAC appreciates that the current system does not benefit or reward WDAs or necessarily promote joint working in tow tier areas.

“What is needed is a realistic view of all funding streams available for waste management, modifying the recycling credits system will not solve the fundamental problem of a lack of resources for many local authority recycling schemes,” Mr Doran added.

Third Parties
In terms of paying recycling credits to third-party organisations – local authorities can pay credits to community recycling groups for the recycling they carry out – both the LGA and LARAC strongly opposed a mandatory system.

The LGA said it “would not support the introduction of mandatory payments to third parties as this would reduce flexibility councils need to achieve best value locally”.

The best way to increase payments to the community sector was to ensure councils are provided with all possible information on good practice in working with other sectors, the Association said.

LARAC said that forcing councils to pay credits to community recyclers “is not the way to deal with any faults in the working between the public and community sectors”. The Committee is pushing for the present “discretionary” system to remain.

LARAC also opposed making councils pay credits to private sector organisations, suggesting such a move would be “disingenuous” of the government to make councils reach recycling targets while financially supporting private sector activities in areas that “potentially target the same source material”.

See also: Community recycling sector demands “credit where it is due”

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