The findings for 2025/26 show a mixed picture across the waste management sector, with increases in Energy from Waste (EfW) and landfill costs offset by reductions in anaerobic digestion (AD) and in-vessel composting (IVC) compared to last year.
WRAP said the data reflects continued market adjustments ahead of major policy changes, including Simpler Recycling reforms and the rollout of extended producer responsibility (EPR) for packaging, which are expected to reshape material flows and local authority collection systems in the coming years.
The report also found that 26% of local authorities are considering changes to their kerbside dry recycling collection methods at the next available opportunity.
Of those planning changes, more than half (52%) currently operate fully commingled systems, suggesting a possible shift towards greater source separation as consistency requirements tighten.
MRF fees edge upwards
According to the report, the median gross MRF gate fees rose to £90 per tonne in 2025/26, up from £82 per tonne in 2024/25, with reported fees ranging between £31 and £137 per tonne.
However, median net gate fees remained unchanged at £42 per tonne, suggesting commodity revenues continue to offset treatment costs despite volatility in recovered materials markets.
The stable net fee also remains below the £51 per tonne recorded in 2023/24, indicating some easing compared with the highs seen in recent years.
IVC fees fall in most categories
Gate fees for IVC treatment were lower across most categories, continuing a downward trend seen in recent years.
The median UK gate fee for mixed food and green waste sent to IVC fell to £66 per tonne, down from £73 per tonne in 2024/25, with a range of £37 to £86 per tonne.
Green waste-only treatment also saw a notable drop, falling to a median of £45 per tonne compared to £57 per tonne last year.
However, food waste-only sent to IVC bucked the trend, increasing to £77 per tonne from £72 per tonne in 2024/25, albeit based on a narrow range of reported values.
AD market remains competitive
Anaerobic digestion gate fees fell sharply again this year, with the median UK fee for food waste dropping to £13 per tonne from £24 per tonne in 2024/25.
The report highlighted an increasingly competitive market, with 10 authorities reporting negative gate fees – meaning they receive payment for material delivered – while a further two reported zero-cost contracts.
WRAP said six authorities had entered new food waste-only AD contracts since April 2025, with a median gate fee of just £7 per tonne. Two of these contracts were also negative.
EfW costs continue to climb
EfW gate fees increased across all three surveyed categories, continuing upward pressure on residual waste treatment costs.
The highest median fee remained for bulky waste only, at £182 per tonne, unchanged as the most expensive EfW category.
WRAP noted significant variation for bulky waste containing persistent organic pollutants (POPs), with a gate fee range of £213 per tonne. The upper end of this range rose from £250 per tonne last year to £311 per tonne in 2025/26.
The number of authorities reporting separate EfW gate fees for residual waste excluding bulky waste containing POPs rose from 29 to 44, while those reporting bulky waste containing POPs only increased from 16 to 29.
This, WRAP said, may indicate changing contract structures and increased differentiation of material streams.
Landfill costs rise alongside tax hike
Landfill gate fees also rose in the latest survey, with the median UK gate fee for non-hazardous landfill increasing to £34 per tonne, up from £26 per tonne in 2024/25.
Reported fees ranged from £15 to £115 per tonne, with the upper end of the market seeing a particularly sharp increase compared to last year’s £59 per tonne ceiling.
The rise comes alongside a significant increase in landfill tax, which climbed from £103.70 per tonne to £126.15 per tonne on 1 April 2025.
Combined, the increases are likely to further reinforce landfill’s position as the least favourable disposal route for local authorities and waste producers.
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