The Environment Overview and Scrutiny Panel met on Wednesday, 11 March 2026, to discuss updates on the Environment Act and its impact on waste disposal, review performance and budget monitoring, and consider the refresh of the scrutiny work programme. Key decisions included noting the significant implications of the Environment Act on waste services and reviewing the council's financial position and performance data.

Update on the Environment Act: Waste Disposal

The panel received an update on the Environment Act 2021 and its implications for waste services. The Act introduces major reforms, including Simpler Recycling, Extended Producer Responsibility for Packaging (pEPR), a Deposit Return Scheme (DRS), and the inclusion of Energy from Waste (EfW) in the UK Emissions Trading Scheme (ETS).

Simpler Recycling aims to standardise recycling collections across the country from April 2026, with requirements for kerbside collections of residual waste, paper and card, mixed dry recyclables, and food waste. While Worcestershire's Waste Collection Authorities (WCAs) will continue with co-mingled collections for dry recyclables, adaptations have been made to the EnviroSort facility to accommodate new materials like foil and plastic tubes. However, the facility was not designed for these new materials, and its future will be part of future discussions. Plastic film will require separate collection from April 2027, potentially increasing costs for the council. Weekly food waste collections are mandated, but no Worcestershire WCAs will implement these from April 2026 due to a lack of local anaerobic digestion (AD) facilities. Contracts are being negotiated for AD capacity near Dymock, Gloucestershire, and another facility for other districts. The County Council may be expected to cover long-haul costs for WCAs delivering food waste directly to out-of-county facilities.

Extended Producer Responsibility for Packaging (pEPR), implemented from 2025, requires packaging producers to fund the full net costs of collection, treatment, and disposal. The council has been awarded significant funding for 2025/26 and 2026/27, but this grant could be affected by local authority performance. Local Authorities (LAs) will be grouped and assessed for efficiency and effectiveness, with potential grant reductions for underperforming LAs.

The Deposit Return Scheme (DRS), due to be implemented from October 2027, will introduce a deposit on single-use containers (excluding glass). DRS containers will be excluded from EPR payments, meaning local authorities will not have their waste management costs for these items covered by EPR. This is expected to significantly impact the composition and cost of waste collected by local authorities.

The UK Emissions Trading Scheme (UK ETS) will include energy from waste (EfW) from 2028, with a voluntary monitoring period starting in January 2026. EfW operators are expected to pass on costs to local authorities, potentially adding significant financial burdens. The council's waste contractor is monitoring emissions at EnviRecover to understand these implications. Mitigation strategies include increasing recycling and reuse to divert materials from EfW, which could save between £68-£175 per tonne of residual waste diverted. The council aims to work with WCAs to invest in service improvements to reduce fossil carbon content and drive down costs.

Performance and Budget Monitoring

The panel reviewed performance and financial information for environmental services for Quarter 3 (October to December 2025).

Areas of Success included:

• Planned Highways Inspections Completed on Time: 98.3% of planned inspections were completed on time, exceeding the 'Well Managed Highway Infrastructure' code of practice.
• Street Works Permit Applications Deemed to have been Granted: A further reduction in permit applications deemed to have been granted was noted, indicating effective measures to ensure applications are processed correctly.
• Street Lighting Energy Used: Consumption figures continued to show the impact of LED lantern replacements, with a 2.1% reduction compared to the previous year's lowest figure.

Areas of Challenge included:

• Condition of Highways and Footways: Extreme weather has made maintaining highway conditions challenging, with a higher percentage of the principal road network requiring maintenance compared to the previous year.
• Outstanding Public Rights of Way (PROW) reports: While new reports decreased, the total number of outstanding reports increased by 6.7% by the end of 2025. The majority are low priority, but a prioritisation system is in place.
• Household Waste Collected: The amount of household waste collected per resident was 438.44 kg in 2023/2024, a 2% increase from the previous year. The Environment Act's requirement for weekly food waste collections adds complexity to predicting and managing waste volumes.

The panel also reviewed the Economy & Infrastructure Dashboard, which detailed performance across various indicators including planned highways inspections, development management cases, traffic regulation orders, road and footway conditions, public enquiries, streetworks licences, street lighting, and household waste. The Council's Q3 Forecast Financial Position 2025/26 indicated a breakeven position after using reserves and exceptional financial support, but highlighted increasing costs in Adult and Children's Social Care. The Council Q3 Forecast Reserves showed a decrease, with only £18m deemed unearmarked and usable. The Council Q3 Forecast High Needs revealed a significant projected overspend of £95.7m for 2025/26, with a forecast deficit of £194m by March 2026. The Overview of Capital Position indicated a total programme value of £644.8m, with 70% funded externally. Specific to the Environment and Infrastructure (E&I) Directorate, the capital programme totals £119m for 2025/26, with 79% funded by grants.

Refresh of the Scrutiny Work Programme 2026/27

The panel was asked to consider suggestions for its 2026/27 Work Programme. The current 2025/26 Work Programme was attached for reference. Topics suggested for future scrutiny included: Waste Contract(s) 2029, Highways Maintenance (Ringway annual update), National Highways 5-year plan, Renewal of Highways Maintenance Contract, Local Transport Plan 5, and S106 agreements. The panel was reminded of its remit, which includes Environment (including Net Zero), Highways, Flooding, and Waste. The panel was asked to prioritise topics based on feasibility criteria, such as council priorities, public importance, and potential for improvement. The final Scrutiny Work Programme will be agreed by the Overview and Scrutiny Performance Board (OSPB) and then by the Council.