From 1 April 2006 the NLWA’s duty to pay statutory recycling credits to the borough councils is removed because of a switch to a new method of levying a disposal/treatment charge on the boroughs. The boroughs are: Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest.
Under the new system the NLWA will move to an approach where its levy to each of the boroughs will be on the basis of the tonnes of waste handled rather than on the previous council tax basis.
Best interests
A statement from the Authority said that “it will therefore increasingly be in borough’s best interests to reduce their levy by reducing and recycling as much waste as possible.
“This means that the additional incentive of paying statutory credits for increasing recycling will no longer be required.”
However, as the tonnage-based levy is to be phased in over three years, the NLWA is voluntarily phasing out credits over the same period rather than stopping the payments from April 1 2006.
To smooth the changeover, the authority is going to continue to pay discretionary credits uner its own local recycling credit scheme to the boroughs and may also make discretionary payments to third parties.
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