The main source of funding for local authorities’ waste management services is the Environmental, Protective and Cultural Services (EPCS) block of Government grant, distributed each year. The amount of grant awarded is based on a formula which takes into account each authority’s population, social structure and other characteristics. It is for each local authority to decide what proportion of the block to invest in waste management services. The Government actively encourage local authorities to promote recycling and other sustainable waste management practices, in order to reduce the amount of waste sent to landfill and, therefore, cut harmful greenhouse gas emissions.
In 2005-06, £220 million was allocated to local authorities in England for waste management projects, comprising £45 million from the Waste Minimisation and Recycling Fund, £40 million from the Waste Performance and Efficiency Grant, £130 million via private finance initiatives and £5 million through the Household Incentives Pilot Scheme. An additional £16.2 million was awarded to local authorities over the two year period 2004-06 via the Waste and Resources Action Programme for local communications.