Government plans waste exemptions overhaul to tackle criminal abuse

The government has published comprehensive reforms to the waste exemptions system, targeting the 10 most abused exemptions that criminals routinely use to hide illegal waste activities from regulatory control.

The reforms will prohibit exemptions at permitted sites, impose stricter limits on multiple exemptions, and introduce mandatory electronic record-keeping for all waste exemption holders. Three exemptions will be completely removed, whilst seven others will have their conditions significantly tightened.

The changes come as waste crime now costs the economy over £1 billion annually, with Environment Agency surveys suggesting 18 per cent of all waste in England is illegally managed - equivalent to 34 million tonnes annually.

Removing the worst offenders

The government will remove three exemptions entirely: U16 (using depolluted end-of-life vehicles for parts), T8 (mechanically treating end-of-life tyres), and T9 (recovering scrap metal). These exemptions have been associated with significant illegal activity, including a notorious case where 600,000 tyres were stored at a Bradford site that held only a T8 exemption, resulting in a week-long fire in November 2020.

Operators currently using these exemptions will have three months to apply for environmental permits or cease operations. The T8 exemption for tyre processing has been particularly controversial, with industry groups arguing it enables the export of whole tyres to developing countries with lower environmental standards rather than encouraging UK processing.

Seven other exemptions will have their conditions modified: U1 (use of waste in construction), T4 (preparatory treatments), T6 (treating waste wood), T12 (manual treatment), D7 (burning vegetation), S1 (storage in containers), and S2 (storage in secure places). These changes include reduced storage limits, amended conditions for specific waste types, and restrictions on certain materials to ensure more frequent turnover and reduce stockpiling.

Closing regulatory loopholes

The reforms introduce several measures to prevent abuse. Exemptions will be prohibited at permitted sites or where there is a "direct link" between exempt and permitted activities. This addresses the common practice of registering multiple exemptions alongside existing permits to intensify operations beyond authorised limits.

Where multiple exemptions are registered at a single site, storage limits will be restricted to the lowest limit among all registered exemptions. For example, if one exemption allows 50 cubic metres of wood storage and another allows 60 cubic metres, the combined limit will be 50 cubic metres, not 110 cubic metres.

All exemption holders will be required to maintain electronic records and make them available to regulators on request. This represents a significant shift from the current system where minimal information is collected about exempt activities, making it difficult for regulators to prioritise compliance checks.

The Environmental Services Association (ESA) has highlighted the broader impact of waste crime, with Executive Director Jacob Hayler stating that "waste crime harms the environment, damages communities and threatens legitimate waste services" and emphasising that citizens have "a duty of care, not only to stop our waste from falling into the wrong hands, but to report suspected illegal handling and dumping of waste when we see it".

Transition arrangements

The reforms will be implemented with staggered transition periods ranging from three to 12 months. Exemptions being removed will have three-month transition periods, while those with changing conditions will have six to 12 months. Record-keeping requirements will take effect immediately once regulations come into force.

The government has indicated that new standard rules permits may be developed to provide simplified permitting routes for legitimate operators affected by the changes. This approach aims to make it fair for legitimate operators while closing loopholes exploited by criminals.

Environment Agency analysis shows that certain exemption types have been "routinely used to hide illegal waste activities from regulatory oversight". According to the announcement, the Agency's prevention and disruption teams are working to address waste crime through new regulatory powers, including the ability to lock up and block access to illegal waste sites.

The reforms will be implemented through amendments to the Environmental Permitting Regulations, though the government has not yet confirmed when these amendments will come into force. Defra states that "further detail when the amendments will come into force will be shared in due course," with various transition periods of three to 12 months applying once the regulatory changes take effect.