The Recycling Credits scheme was reformed through section 49 of the Clean Neighbourhoods and Environment Act 2005 (CNEA). Changes to the Scheme increase the flexibility of payments from waste disposal authorities (WDAs) to waste collection authorities (WCAs) in two-tier areas by giving them the option to jointly agree alternative arrangements. These changes have been in effect since April 2006. The CNEA also clarified that recycling credits can be paid for reuse activity and that reuse should be treated in the same way as recycling for the purposes of the scheme.
Local authorities (LAs) have the power to pay credits to third parties for the recycling and reuse activity they carry out. These payments are at the discretion of individual LAs so that they can take account of local circumstances. The Government introduced updated guidance in April this year, which gives greater encouragement to LAs to adopt good practice. The guidance strengthens the existing presumption that LAs will consider applications for credits from third parties which meet certain criteria and consider the social, environmental and economic benefits associated with community recycling.
The guidance makes it clear that credit values should be the same for reuse as they are for recycling and disposal credits for third parties should be calculated on the same basis as credits for waste collection authorities.
Guidance on the recycling credits scheme can be found on the DEFRA website at:
http://www.defra.gov.uk/environment/waste/localauth/part_work.htm