Landfill Operators can choose to pay a portion of their landfill tax, up to 5.6%, to Environmental Bodies (EBs) approved by Entrust, the LCF regulator. These EBs then use the funds to support projects that benefit local communities and the environment within a set criteria laid out in the Landfill Tax Regulations (1996). The full criteria is set out in the Guidance Manual.

The LCF mostly benefits communities living near landfill sites by funding projects that improve the local environment and quality of life. Typical projects include the creation or improvement of public parks, wildlife habitats, community buildings, and facilities, as well as the restoration of historic buildings and places of worship.

Local communities and not-for-profit organisations can apply for LCF funding, usually by applying to a funding Environmental Body (EB). The EB will have an application process, ensuring the project meets their, and the scheme’s eligibility criteria. In some cases, a local Landfill Operator may not already be contributiong to the scheme and be able to fund the project directly, although this is rare.

Landfill Operators participate by choosing to contribute a portion of their landfill tax liability to the LCF. They make payments to EBs, who then use the funds for approved community and environmental projects. By participating, Operators receive a tax credit of 90% of the contribution amount.