Five local authorities will be granted the power to pilot incentives for waste minimisation and recycling next year.

Waste and recycling minister, Joan Ruddock, announced the pilot under powers included in the Climate Change Bill.

The scheme put forward by local authorities must be approved by the environment secretary, and follow clear guidelines set out in legislation, including having ‘checks and balances' in place for residents.

‘This is a new power for England,' said Ms Ruddock. ‘We therefore want to give a number of councils the chance to pilot incentive schemes to help monitor impacts and learn valuable lessons.

Any money collected from the schemes will be paid back to residents throwing away the least waste. Those residents who continue to throw rubbish away could see a hike in council tax.

The Local Government Association has described the pilot scheme as good news for councils and local people.

‘Britain is the dustbin of Europe, throwing more waste into landfill than any other country on the continent, and this simply cannot continue,' said Cllr Paul Bettison, chairman of the LGA environment board.