Local Authority Funding
This work stream will ensure a joined-up approach to delivering additional funding from central government to local authorities for improved recycling and composting.
Waste Performance and Efficiency Grant
The Government has written to all local authorities in England with waste management responsibilities to announce a three-year targeted local authority Waste Performance and Efficiency Grant totaling £260m. This replaces the original proposals for a waste Performance Reward Grant, and has been designed to address the significant concerns raised by stakeholders during the public consultation earlier this year. A summary of the responses received to Defra's consultation on the original design for the waste Performance Reward Grant has been published.
The Waste Performance and Efficiency Grant will support new and more efficient ways to deliver waste reduction and increase recycling and diversion from landfill. Local authorities will receive £45m in 2005/06, £105m in 2006/07 and £110m in 2007/08. In 2005/06, £40m will be allocated according to a formula designed to reflect individual local authorities' need to spend on waste. The remaining £5m in 2005/06 will be distributed as part of a pilot programme focusing specifically on local authority incentives for households to recycle and reduce waste - further details on the arrangements for the pilot programme will be made public in the New Year.
The Government has published an Advisory Note to Local Authorities which sets out what the Grant is intended to achieve; how awards will be calculated, and how payments will be made. It also provides local authorities with advice on how they may wish to invest their award, and signposts further support. The grant is not, however, ringfenced and there are no specific requirements to invest the funding under the Waste Performance and Efficiency Grant in a particular way.
Decisions on the future of the Grant beyond 2007/08 will be taken in the context of Spending Review 2006.
- Full list of allocations to each authority in England in 2006/2007 and 2007/2008
(265 KB) - Advisory note to Local Authorities
(40 KB)
- Letter to Local Authorities
(34 KB)
Waste Minimisation and Recycling Fund
The National Waste Minimisation and Recycling Fund (NWMRF) was first established in 2002 to provide local authorities with additional funding for the introduction and expansion of sustainable waste management initiatives.
The NWMRF has now come to the end of its life and no further rounds of funding are planned. It has been replaced by the Waste Performance and Efficiency Grant (WPEG). For historical information on the Fund, details of projects supported over the 4 years the fund operated and associated reports see:
Waste PFI
Waste PFI sits within Local Authority Funding, alongside the National Waste Minimisation and Recycling Fund. For more information on Waste PFI, please see
Local authority funding for waste
- Standard Spending Assessment
- National Waste Minimisation and Recycling Fund
- Reduced Spending Pressures for Local Authorities in the Waste Area 2004/05
Managing waste sustainably: Defra announces help for Councils
Environment Minister Elliot Morley has announced a package of measures to help local authorities divert waste from landfill and encourage recycling without putting additional pressure on council tax. The announcement follows publication of the provisional Local Government Finance Settlement for 2005/06.
Waste Procurement
Local authorities spend significant amounts of money on waste collection and disposal services, mainly through contracts with the private sector. In order to meet the challenging targets of the Landfill Directive, it is vital that the best value for money options continue to be secured.
- Review of local authority waste disposal companies and their role in future procurement (234 KB)
- Efficiency programme
- Market shaping
Further information is available on our Help
page about downloading or reading Adobe Acrobat documents.
Page last modified: 14 June 2006
Page published: 5 February 2003