Pay As You Throw
What is the issue?
Pay As You Throw (PAYT), also known as variable charging, refers to charging households for the collection, treatment and disposal of their waste. Crucially, it is charged according to the quantity of waste set out for collection, measured by volume, weight, size or number of containers, or a combination of these.
PAYT is controversial as it touches on issues of equity, the relationship between the individual and the State and the 'polluter pays' principle. It has been attacked as a bin tax by some sections of the press and led to privacy fears about the use of micro chips in bins.
Many of the criticisms levelled at PAYT are not valid.
- Fears of invasion of privacy have so far proved unfounded.
- Allegations that variable charging amounts to a stealth tax are misguided as schemes would be revenue neutral.
- There is no evidence of increased fly tipping where it has been introduced.
PAYT schemes have been operating in the US and continental Europe for some time. In the UK, existing legislation forbids any sort of charge to be made for household waste collection. The previous government's Waste Strategy (2007) made provision for a number of PAYT pilot schemes, but no local authorities took up the opportunity. The Coalition Government have now repealed the legislation permitting this, ensuring that it is off the agenda for some time to come.
What should be done?
We believe that local authorities should be allowed to introduce variable charging if they wish for two main reasons.
- It works. Research has shown that the introduction of such schemes encourages recycling and makes people think about reducing their waste, for example by changing their shopping habits.
- It is fairer. We all pay for the collection of our waste and recycling through Council Tax, around 70p per collection for each service. But this cost is rising as landfill tax increases. This flat rate charge for all effectively penalises those who are doing the right thing by reducing and recycling their waste. We also already pay for other utilities, such as gas, water and electricity, by how much we use, so why not waste too?
We advocate PAYT only if the following five conditions are met.
- All residents should have equal access to a high quality, free at the point of use doorstep recycling service. Recycling should be at least as easy as throwing away general waste and councils should collect at least the main five recyclables: glass; paper; cardboard; plastic; and cans.
- Proper communications are in place to ensure that all parts of the community are aware of how they can minimise their waste.
- Waste charges are set at a level that motivates consumers to reduce their waste, but not so high as to encourage illegal waste disposal.
- Waste charges are de-coupled from the Council Tax and presented in a separate bill, which shows consumers the amount of waste set out and the related per unit charges, similar to electricity and gas bills.
- The introduction of such schemes is accompanied by producer responsibility measures to cut packaging waste and allow individuals a greater degree of control over their waste production by reinforcing the 'polluter pays' principle.
We believe that PAYT schemes will help the public take more responsibility for their waste and represents a move towards more sustainable waste management.




