Householders who fail to pre-sort household rubbish for recycling will charged extra under leaked plans being advanced by Margaret Beckett, the Environment Secretary.
The leak was exposed by the Sunday Times who said that cabinet papers suggested Local councils would be given the powers in a "clean neighbourhoods bill" in the autumn.
Now Shadow local government secretary Eric Pickles has slammed the proposals saying: "This comes at a time when local authorities do not actually have the capabilities or facilities to process separated waste."
"Taken to its logical conclusion, householders would be fined whilst sorted waste was unable to be processed. This is yet another example of this Government being all talk and no substance."
According to the leaked report the aim would be to encourage a "recycling mentality" similar to that in many other European Union countries and identified 17 other major industrialised nations where incentives were available for households who produce less waste, or recycle or compost more.
Under the present council tax process households are charged the same rates regardless of any waste pre-sorting undertaken in the home. Two years ago the government told councils to look for new ways to give householders 'financial incentives' to reduce and recycle waste.
According to the Sunday Times report, the 'household incentive scheme' is to be included in the Clean Neighbourhoods Bill, which will be part of the next Parliamentary session starting in the autumn. However, the Bill was issued for consultation last month, but with no mention of the incentive scheme.