Landfill tax is seen as a key mechanism in enabling the UK to meet its targets set out in the Landfill Directive for the landfilling of biodegradable waste. Through increasing the cost of landfill, other advanced waste treatment technologies with higher gate fees are made to become more financially attractive.

Every year since April 2001 landfill tax in the United Kingdom has risen at a rate of £3.00 per tonne. Currently, the Landfill tax stands at £24.00 and will continue to rise each year.

As of 01 April 2008, the Landfill Tax for active waste going to landfill, has risen by £8.00 per tonne. This increase will continue each year for the next three years. By the 2010/2011 financial year, a level of £48.00 a tonne will be reached.