England’s Waste Strategy is currently being reviewed. In this context, Defra is considering the full range of tools that could encourage producers and consumers to reduce waste and increase recycling. The use of financial incentives, such as recycling rebates, is only one of a number of options being considered.
Microchips are identification tags which allow a bin to be matched to a particular property—they do not record information on what is put into the bin. There are other methods of providing people with positive incentives to recycle.
The Conservative-run Local Government Association has requested a change in the law to allow local authorities to introduce such positive incentives.