At the moment, many waste management companies are putting their prices up. There are a few reasons for this increase but you might not know the whole truth of the matter. While some companies are putting their prices up in line with inflation, others are increasing their rates for other, more dubious, reasons.
Here are a few reasons your waste management bill might have gone up without you realising it.
Landfill Tax Increases
From April 1st 2019, Landfill Tax will go up from £88.95 per tonne to £91.35 per tonne. This increase means that companies sending waste to landfill are likely to pass on the extra cost to their clients.
However, some companies are increasing their rates in line with the Landfill Tax Increase despite claiming to recycle the waste. Obviously, it makes no sense that companies recycling their waste would need to put their costs for landfill if they are not using landfill. This means that those companies are either misleading their customers and they are not recycling or they are using the Landfill Tax increase as a way to increase their prices and still appear to be legitimate.
You can read more about landfill in our guide, Everything You Need to Know About Landfill.
Environmentally Friendly Choices
One of the best ways to bring down the cost of waste removal and disposal is to choose the most environmentally friendly routes possible. The whole point of the Landfill Tax is to encourage companies and individuals to recycle as much waste as possible. The whole idea is to find alternative methods to avoid paying the tax.
The economic incentive is there to make recycling the obvious economic choice for customers. But if companies are charging their customers landfill rates regardless, the whole principle is undercut.
At WasteSURE, we always try to find the most environmentally friendly route for your waste as a standard. We operate on an open and transparent basis so you will always know where your waste has gone, how it may have been treated and where it is finally processed. By doing this, we ensure full compliance with the waste duty of care as well as a more efficient and economical solution for you.
Cost Plus
Many waste management companies use a cost plus system to make a profit. This means that when they outsource a skip, they simply add a percentage on top of that cost to get a quote for their client.
For example, if an 8 yard skip costs £125, a waste manager might add on 15% and charge their customer £143.75.
Working this way means that it is always better for the waste manager to find the most expensive skip company as they will automatically increase their profits this way. By encouraging skip companies to charge more, they pass on the cost to their customers and reap the rewards. This method also means that waste managers aren’t incentivised to find the most efficient or environmentally friendly way of dealing with the waste as these are often cheaper routes.
Cost Per Solution
Instead of cost plus, WasteSURE has developed a cost per solution system. This means that we charge a fixed amount for our services so that you pay a fair rate, not the most expensive or profitable rate for your waste manager.
We make a profit by searching for the most efficient method for removing and disposing of your waste. In practice, this means that we use local providers within our network and recycle as much waste as possible to avoid having the pay the landfill tax. All our staff are incentivised to get the best possible deal for your waste.
Our network of providers are all fully permitted and we ensure full compliance with the waste duty of care as a standard. We build relationships with all our providers so that we can provide consistently fair prices for all.
Brexit
Brexit is already having an impact on the economy and the value of the pound and it is reasonable to assume that the waste management industry won’t go unaffected. However, since we haven’t actually left the European Union yet and (at the time of writing) don’t know what sort of deal we will have, it is too early for companies to predict what will happen in terms of costs.
We can, however, be reassured about the legal stance the UK will have. One of the main issues waste managers face is how to handle waste exports when the UK leaves the EU. When the UK leaves the EU on March 29th, it will remain party to the Basel convention and a member of the Organisation for Economic Co-operation and Development (OECD). Essentially, this means that the rules for exporting waste will remain the same.
However, exporting waste should always be a last resort for companies in the UK. The expectation of the duty of care is that you will prioritise finding a suitable carrier and disposal site within the UK over exporting to other countries. Indeed, exports of UK waste for disposal are prohibited, apart from a few exceptions and getting permission to export is a long process.
The Best Deals Now
Though we can’t predict the future – and Brexit is about as confusing as it gets – we are dedicated to bringing all our client the best solutions at the time. We can’t promise that Brexit won’t force changes but we can promise that we will always follow our 3 most basic tenets:
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We will always use the waste duty of care as the foundation of any waste solution
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We will always offer you the fairest price for our services
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We will always be transparent so you can track your waste through to the end of its journey
If your waste management bill has gone up, you deserve to know why. You should never have to cover the cost of landfill tax when your waste is being recycled. Your duty of care requires that you can follow your waste throughout its journey so you should know where your money is being spent at each stage.
Want to find a better deal for your waste? Get in touch with WasteSURE today and we will find the best solution for you.
Call Mark on 0333 301 0705 or email mark@wastesure.com.
