Workplace Recycling Rules: £45,000 Saved Through Fair Apportionment

New Workplace Recycling rules came into force on 31st March 2025 which requires all waste to be separated before collection and is therefore likely to lead to an increase in waste costs as additional equipment and labour will be required to facilitate the separation.  Assure intensely scrutinise these costs in service charge budgets to ensure our clients are only paying for the waste services they benefit from.   

We recently identified a significant opportunity to reduce waste costs for a convenience store client in Bristol.  When initially reviewing the budget, it was noted that the client was liable for the majority of the budget costs, including waste costs.  This would be in accordance with the floor area based apportionment detailed in the lease terms.  However, the other occupiers at this scheme were takeaway foods operators, which generally produce more mixed waste than a supermarket retailer.  We checked with our client if they were aware how much waste the store generated, and this was understood to be no more than one bag of dry waste each day.  

Our client’s lease did allow for the proportion of costs to be varied for beneficial use and give this discrepancy in the use of the waste service; we challenged the apportionment with the managing agent.  After a thorough review of the on-site waste usage at the site, the Managing Agent confirmed that the waste charge apportionment was unfair.  

They proposed adjusting the share of the waste costs recharged to our client at year end which resulted in a saving of over £21,000 in one year.  

Additionally, the challenge resulted in a backdated saving related to the previous two years reconciliations, for a further saving of over £24,000.  Total cash back to the business of over £45,000 and the undertaking that the cost going forward would be fairly apportioned.  

If you’re questioning your service charges – or haven’t questioned them in a while – now might be the time for our team to take a closer look. Complete the contact form below and one of our experts will be in touch.