Did you know that businesses in the UK generate over 40 million tonnes of waste every year? That’s a fair amount of waste, but the question is how much does it cost to dispose of?
We could tell you straight away that an average disposal cost per tonne for commercial waste would be roughly £180-250, but that doesn’t really paint a true picture and might give you an unrealistic benchmark of what to expect.
Commercial waste as a term covers a vast array of different waste types, and as you may imagine with the thousands of different businesses across the UK it’s not a one size fits all when it comes to being able to provide you with cost expectations.
The Complicated Costs of Commercial Waste
But don’t worry, we’re going to try to uncomplicate it! There are a couple of different ways to get an idea of how much your commercial waste removal requirement may cost – so we’re going to deep dive into bin rental, standard waste collection, the costs of different types of waste, even an estimated spend by size of business and finally any additional fees you may need to consider.
Commercial Bin Hire
Your business may only require the regular collection of a large bin, and generally in the UK they come in three different sizes. These all have different initial purchase prices, and a rental fee that you would pay monthly, then there is a further cost for the arrange collection, which you can generally control how often that is.
| Bin Size | Capacity | Purchase Price | Rental Price | Collection Fee |
|---|---|---|---|---|
| 240 litres | 3 sacks | £40 | £3 per month | £5 per collection |
| 660 litres | 8 sacks | £130 | £12 per month | £10 per collection |
| 1,100 litres | 12 sacks | £280 | £21 per month | £15 per collection |
These are illustrative fees and they do vary based on your business location and requirements, this is something we can discuss in more detail in our initial call.
Commercial Waste Collection Costs
If you just want a standard commercial waste collection on a regular basis, then there are several factors that can impact the overall cost, but we’ll dig more into those later – for now, we’ll highlight some general cost ranges for you to get an idea.
As a business you will typically have a fee that is paid on collection per bin, but then an additional disposal cost based on the weight of the waste. There are additional fees for hazardous waste, landfill tax and rental fees which we’ve mentioned in the previous paragraph.
| Waste Type | Collection Fee (per bin lift) | Disposal Cost (per tonne) |
|---|---|---|
| General Waste | £15 - £30 | £160 - £250 |
| Recyclable Materials | Free - £55 | Free - £70 |
| Hazardous Waste | £50+ | Varies |
| Food Waste | £50 - £160 | Varies |
It’s worth noting that the recycling needs to be properly sorted in order to be most cost effective, if it’s mixed and needs sorting that’s when you will see the fees and why they vary – you can reduce costs by segregating wastes as this offers cheaper disposal costs for companies like us.
Average spend on waste by size of business
This is tough to provide figures on, as the type of business has a huge effect on the amount of waste that will be produced. To make it less complicated, we’re going to assume that the business is a standard office, which according to data from businesswaste.co.uk a single office worker generates approximately 0.5 tonnes of waste a year.
The cost per tonne for general business waste does vary a lot, mainly depending on location, however the typical average cost is around £220 for general office waste. Using that figure, we can provide estimates based on the amount of employees:
| Number of Employees | Total Waste (Tonnes) | Total Disposal Cost (£220 per Tonne) |
|---|---|---|
| 5 | 2.5 | £550 |
| 10 | 5 | £1,100 |
| 20 | 10 | £2,200 |
| 50 | 25 | £5,500 |
| 100 | 50 | £11,000 |
| 200 | 100 | £22,000 |
| 500 | 250 | £55,000 |
| 1000 | 500 | £110,000 |
Additional fee considerations
There are various other taxes and fees that need to be taken into account when looking at a waste management solution which could impact the overall quote. Here is an overview of the main ones:
Compliance fees
There are certain administrative expenses, referred to as compliance fees, which increase the cost of commercial waste disposal. They Are more relevant for the waste removal companies, like ourselves, but they are reflective in the price of the service.
One of the additional costs incurred is the requirements of a Waste Transfer Note for each and every load that leaves a business, or WTN for short. These are short documents that detail the exact nature of the waste and confirmation of its proper disposal.
The second significant cost that we incur is the specific licences and permits needed to store, and transport the waste, legally. A waste carrier licence is required, which costs £154 and you can find more specifics around this licence on the Gov website.
Landfill tax
This is a cost associated with all waste disposed of in landfills, there are two rates depending on area, standard and low, priced per tonne. These rates have been consistently increasing over the years.
On 1st April 2023 the standard rate was £102.10 per tonne, which rose to £103.70 on the same date in 2024, and is due again to rise in 2025, by its most significant amount to £126.15.
That represents a 21.65% increase, which will be passed on to businesses.
Regulatory cost
There could be additional regulatory costs beyond the compliance and landfill tax, this depends on the type of business you have. These are as followed:
Extended Producer Responsibility (EPR) – Requires producers to cover the costs of managing their products end of life disposal and particularly the packaging waste.
Deposit Return Schemes (DRS) – Only in some regions, but businesses are now being ordered to manage the collection and recycling of returned containers which could come at an additional cost.
Incineration Taxes: If you utilise this method of disposal it could increase the costs as councils face pressure from the government with imposed charges pending. You can read more about this in the “tax on UK incinerators” article by the Guardian.
Just answer a few short questions & we’ll provide you with a completely no obligation quote
Factors that impact the cost
Working out the cost of your commercial waste disposal isn’t always that straight forward though, and all of the above tables are just examples – it does vary massively based on a variety of different factors, which need to be taken into consideration. Most businesses are completely unique, and so are their waste requirements, and therefore costs.
Location
Where your business is based has a significant impact on the cost of waste disposal, there are two reasons for this. One it impacts the overall cost with labour rates, but secondly, each council has different waste disposal pricing that is passed on to the customer.
Type of waste
Recycling isn’t as expensive when correctly sorted than say, food. Depending on the type of business and waste that it produces your cost of disposal will change, as we’ve detailed in our table above.
Size of waste (or bin size)
This one will go without saying, but the amount of waste your business produces will impact the overall cost, as typically the charge is primarily on the weight. This can vary however, if you use commercial bins that are collected regularly, you will be charged for that service, whether the bin is full or not.
Contract terms
Not every waste collection provider will provide the same price, and it’s worth comparing multiple waste management companies, such as ourselves, to find the most competitive pricing.
We can also provide significant discounts for longer term contracts, or tailoring it towards your business if you are able to organise the recycling correctly. We never charge hidden costs, but that is also something to be aware of when looking into a commercial waste disposal partner.
What else should you consider when choosing
Hopefully we’ve given you a good idea of how much your commercial waste disposal may cost you, but before you try and find and compare providers, hold off just a second! There are a couple of other things that you should consider, and be aware of, before making your choice – and here are the main ones:
Hidden Fees
Watch out for hidden costs! Sometimes commercial waste collection companies will build in some sneakier charges into the contract. Always make sure you read through the full cost breakdown before going ahead, and here are a few of the ones to watch out for:
- Bin rental fees - pretty commonplace, but check they aren’t too high!
- Admin fees - There are sometimes some sneaky set up charges built in.
- Overweight charges - you can’t always perfectly predict your waste, so make sure any charges are reasonable.
- Missed collection - If your bin isn’t accessible when collected, there’s usually a fee involved.
- Early exit fees - how much would it cost you to break the contract early, if you find a better provider.
Recycling & sustainability (environmental goals)
As a business, we hope that you care about doing your bit for the environment, and you should do so when choosing a provider. Make sure they support recycling & waste reduction, offer zero to landfill solutions, and what other methods they have to reduce your carbon footprint.
Choosing a good, sustainable waste management company could improve your Corporate Social Responsibility (CSR) credentials.
Types of waste accepted
Different providers handle different waste, and you want to ensure your provider can deal with all the types of waste your business products. This is especially relevant if you deal with hazardous, food or confidential waste as they may require specialist providers with different licences and disposal methods.
Service reliability
Make sure you read the providers reviews before going ahead, having a consistent and reliable collection schedule is important to ensure waste doesn’t build up and cause you issues. Make sure the company doesn’t have a track record of missing collections, and are able to provide 24/7 customer support for any urgent problems you may have.
Collection frequency & service options
This is something you can discuss with a potential provider with more detail, but you want to ensure that you put a collection schedule in place that fits your company’s waste production – daily, weekly, fortnightly, even monthly. Some providers as well will offer flexible pick up options which could help you avoid disruptions if you have an unexpected increase in waste.
Customisation & additional services
Do you require a waste reduction consultation to help cut costs? Perhaps you want to have a bespoke waste plan, or having onsite balers, shredders or compactors could even save you money.
These are all things that could be worth considering, and not every commercial waste company will be able to offer all of these – so do your research beforehand, and be sure to ask the right questions!
Regulatory compliance
Your business has a legal duty of care under the Environmental Protection Act 1990 to manage and dispose of waste responsibly and safely. It’s your duty to ensure the provider you choose follows UK waste disposal laws, and always check that they have a waste carrier licence.
Just to leave you with some final thoughts. To summarise, choosing the right waste disposal provider will significantly reduce costs, improve your sustainability and allow you to get back to doing what you’re good at without having to think about all the rubbish!