What to Expect for Waste Disposal Prices in 2025

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Dan Pegram

Published: 09/12/2024

The waste management industry is on the brink of significant changes that are likely to impact waste disposal costs more than ever before. Traditionally, price increases have aligned with the government’s annual landfill tax adjustments in April. However, 2025 is shaping up to be a year of unprecedented challenges, with multiple factors driving costs higher and earlier than usual.

In this blog, we explore the key factors contributing to the expected price increases, the potential timing of changes, and how businesses can prepare to manage their waste effectively in this evolving landscape.

The Rising Cost of Labour-Intensive Sorting

Sorting waste has always been a labour-heavy process, but increasing regulatory requirements and stricter recycling targets are amplifying the challenge. To meet these demands, facilities must invest in advanced sorting processes and skilled labour, driving up operational costs.

Combined with inflation and rising wages, this trend will significantly impact waste disposal pricing in 2025, as facilities work to deliver higher-quality waste separation and recycling.

Why April is No Longer the Only Trigger for Price
Increases

Traditionally, waste disposal price hikes coincided with the government’s landfill tax adjustments in April. However, the landscape is shifting, and 2025 could see price increases as early as January. Factors influencing this trend include:

1. Energy Costs

Energy-intensive waste sorting and recycling processes are vulnerable to ongoing high energy prices. These costs are unlikely to decline, creating persistent pressure on facilities.

2. Red Diesel Tax Relief Removal

The government’s removal of Red Diesel tax relief has drastically increased energy costs for machinery used in waste management, with some facilities experiencing a fourfold increase in operational expenses.

3. Rising Overheads

Inflation, higher transport costs, and soaring insurance premiums are compounding operational expenses for waste operators, forcing price adjustments.

Energy Efficiency: A Double-Edged Sword

While energy-efficient technologies such as electric collection vehicles and battery-operated equipment offer long-term savings, their adoption remains limited due to high upfront costs and infrastructure challenges. Remote waste facilities face additional obstacles, including limited grid power availability, slowing the transition to sustainable energy solutions.

Government Support: The Missing Link

Unlike other energy-intensive industries, waste operators are excluded from the Energy Intensive Industry (EII) scheme, which offsets up to 70% of allowable energy costs. This lack of support puts waste facilities at a competitive disadvantage, further straining their budgets and contributing to rising costs.

If you’re unsure whether your business qualifies for the EII scheme, check out our detailed blog on EII eligibility.

What Rising Costs Mean for Businesses

Businesses producing waste will inevitably face higher costs as operators pass on increased expenses. Key impacts include:

Increased Costs for Producers: Waste disposal prices are set to rise across the board, affecting businesses of all sizes.
Pressure on SMEs: Small and medium-sized enterprises (SMEs) with high waste outputs may find it particularly challenging to absorb these cost increases.
The Importance of Strategic Waste Management: Companies that optimise their waste streams will be better positioned to control costs and improve sustainability.

How Flame UK Can Help You Stay Ahead

At Flame UK, we’re here to help businesses navigate these changes and turn waste management into an opportunity. Our tailored services include:

Waste Minimisation Projects: Reduce waste generation and associated costs.
Recycling Opportunities: Explore innovative recycling solutions to minimise landfill use.
Revenue Generation from Waste: Discover ways to turn waste streams into revenue.

Contact our team today for a free assessment of your waste strategy. Together, we can identify cost-saving opportunities and implement sustainable solutions that benefit your business.

Take Control Of Your Waste Strategy

By staying informed about industry trends and proactively managing waste, businesses can mitigate the impact of rising costs and find opportunities for efficiency and sustainability.

Stay up to date with our socials for the latest updates and actionable tips to enhance your waste management practices in 2025 and beyond.

Don’t let rising waste disposal costs catch you off guard—let’s build a smarter waste strategy together!