Welsh Ministers have set new Landfill Disposals Tax rates for disposals made on or after 1 April 2026: £130.75 per tonne at the standard rate, £8.65 at the lower rate and £196.15 for unauthorised disposals. The Landfill Disposals Tax (Tax Rates) (Wales) (Amendment) (No. 2) Regulations 2025 were made on 5 December, laid before the Senedd on 9 December and are scheduled for approval on 20 January 2026, according to a Written Statement by Cabinet Secretary for Finance and Welsh Language, Mark Drakeford MS.

For context, the 2025–26 rates are £126.15 (standard), £6.30 (lower) and £189.25 (unauthorised). From April 2026 that means a 3.6% uplift at the standard rate and a similar move at the unauthorised rate, while the lower rate rises sharply to £8.65 per tonne-reflecting ministers’ aim to keep more lower‑rated material out of landfill.

The unauthorised disposals rate remains pegged at 150% of the standard rate to deter illegal dumping, a policy Wales has used consistently. Keeping that ratio in place alongside the 2026 uplift maintains a clear financial deterrent against unauthorised activity.

Wales is already a high‑recycling nation. Official figures show councils reused, recycled or composted 66.6% of municipal waste in 2023–24, with residual waste per person falling to 168kg and total waste generated at 1.4 million tonnes. The statutory target is 70% by 2024–25, and momentum through 2024 suggests further improvement.

Illegal waste still harms communities and budgets. The Environment Agency estimates waste crime costs around £1 billion a year in England and recorded 451 active illegal waste sites at the end of March 2025. While Natural Resources Wales is the regulator in Wales, a strong unauthorised rate helps protect legitimate operators on both sides of the border.

For councils, contractors and major waste producers, the planning window is clear. Re‑baseline disposal budgets for 2026–27, tighten waste classification controls, and invest in separation to reduce tonnage charged at the standard rate. The Workplace Recycling Regulations, in force since 6 April 2024, already require most workplaces to separate key materials and ban separately collected recyclables from landfill or incineration-compliance here is now a cost saver as well as a legal duty.

The tax also funds community solutions. Through the Landfill Disposals Tax Communities Scheme, managed by WCVA for Welsh Government, grants of £5,000–£49,999 are available for projects near landfill or waste transfer sites, with current application windows running to 12 December 2025. This is a practical route to support local reuse, repair and biodiversity alongside the new rates.

The fiscal backdrop matters too. The Welsh Revenue Authority collected £34.1 million of Landfill Disposals Tax in 2024–25, with receipts paid into the Welsh Consolidated Fund to help finance public services. A stronger price signal from April 2026 aims to reduce this over time by cutting the amount sent to landfill.

One more reminder of why prevention counts: Friends of the Earth Cymru has identified more than 45,000 potentially contaminated land sites across Wales, underscoring the need to reduce future dumping and fund remediation of the past. Recycling, reuse and safe treatment keep materials out of the ground in the first place.

What happens next is straightforward. Subject to Senedd approval on 20 January 2026, the new rates take effect on 1 April 2026; until then, 2025–26 rates apply. Operators should watch for any updated guidance from the Welsh Revenue Authority ahead of implementation.