FAQs

The LCF is a UK Government initiative in England and Northern Ireland, designed to help offset the negative impacts of landfill sites on local communities. The fund provides a tax credit of 90% of the value of contributions that a Landfill Operator makes to support community and environmental projects. Landfill Operators can contribute up to 5.6% of their total Landfill Tax due.

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.

Environmental Bodies (EBs) are organisations approved by Entrust to receive and distribute LCF funds. Their responsibilities include:

  • Identifying and managing suitable projects.
  • Applying for and distributing LCF funds.
  • Ensuring projects comply with LCF regulations.
  • Reporting on project outcomes to Entrust.

Projects eligible for LCF funding typically fall into one of five categories:

  • Public Amenities: Improvements to public parks, sports facilities, and community spaces
  • Biodiversity: Conservation and enhancement of wildlife habitats
  • Historic Buildings: Restoration and maintenance of historic and religious buildings
  • Pollution Reduction: Initiatives to prevent or reduce pollution and its effects
  • Reclamation and Remediation: Initiatives to remediate land used for landfill and other economic activity.

EBs assess project applications based on criteria such as:

  • Eligibility under LCF regulations.
  • Potential benefits to the community or environment.
  • Feasibility and sustainability of the project.
  • Value for money and effective use of funds.
  • EBs often have a structured application process and may involve community consultation or expert advice in their decision-making.

 

To become an approved EB, an organisation must register with Entrust, but only need to do so in the rare case that they are recieving funds directly from a Landfill Operator. This involves completing an application form and providing details about their activities and governance. Entrust reviews the application to ensure the organisation meets the criteria set out in the Landfill Tax Regulations.

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