The rise of insourcing in waste and recycling
Across the UK, councils are increasingly choosing to insource waste and recycling services, gaining greater flexibility, stronger accountability and improved conditions for frontline staff as they align operations more closely with local priorities and long‑term sustainability goals
Across the UK, more councils are choosing to bring waste and recycling services back in house. The shift reflects growing frustration with the limits of long-term outsourcing contracts, which can leave authorities locked into rigid service models and slow to respond to new national recycling targets or local priorities. By insourcing, councils regain direct control over frontline operations, ensuring that services can adapt quickly to policy changes and community needs.
At the same time, insourcing is about people as much as policy. Staff can transfer under Transfer of Undertakings (Protection of Employment) Regulations (TUPE), which means they can move from the private provider onto the council’s books.
TUPE transfers often mean staff move onto better pay, conditions, and pension schemes, strengthening morale and retention. Councils also see reputational value in taking responsibility for services that are highly visible to residents: bins collected on time, streets kept clean, and recycling targets met. In-house delivery aligns waste management with wider sustainability and climate ambitions, while cutting out contractor profit margins to reinvest savings directly into local services.
Financial restraints
In June, Havant Borough Council (Hampshire) agreed to bring waste services in house. Currently, waste collection, recycling, street cleaning, and grounds maintenance are provided by Norse South East (Norse SE), a joint venture company between Havant Borough Council and Norse Commercial Services Ltd, a subsidiary of Norse Group.
A transition to an in-house service model was agreed to enable the services to be delivered differently and more cost-effectively.
The transition will take place from 31 March 2026, when the current service agreement with Norse SE is due to end.
Councillor Netty Shepherd, Cabinet lead for Commercial, said “The decision to bring services provided by Norse SE in-house has been made after extensive analysis. Havant, like all local authorities nationwide, is facing enormous financial challenges, and with the initial ten-year joint venture agreement drawing to an end, now is the right time for the service to begin the transition back to the council.
“An in-house service model will provide the council with direct control over the delivery of services that will enable us to flex the service and be responsive to our residents’ needs. It will also enable better alignment of the services with the council’s corporate priorities, including the Biodiversity and Climate Change strategies.
“We have taken into consideration the recommendations brought to this Cabinet by the Overview and Scrutiny panel, and I’d like to thank my Councillor colleagues for their diligence and extensive questions in taking their time to consider this important change.
“Norse SE is the largest contract this council has, and the implications of this change are not insignificant. Extending the current service with them for a defined period will allow us to ensure the transition to an in-house service model is performed as effectively and efficiently as possible.”
Why do councils make the switch?
Outsourced contracts can tie councils into rigid service models that don’t easily adapt to changing priorities. By bringing waste services in house, councils gain the freedom to respond quickly to new recycling targets, environmental regulations, or local community needs without waiting for contract renegotiations.
Contractors build profit margins into their fees, which can drive up costs over time. Insourcing allows councils to cut out those margins, achieve greater transparency over spending, and reinvest savings directly
into frontline services that residents see and value.
When staff transfer into council employment, they often benefit from better pay, pensions, and job security. This boost in morale and retention translates into more reliable services, with crews who feel valued and motivated to deliver for their communities.
Waste collection is one of the most visible services councils provide. Insourcing means councils take direct responsibility for performance, strengthening public trust and reducing reputational risk if services fall short. Residents know exactly who to hold accountable.
In-house teams can be directed to support wider sustainability and climate goals, from boosting recycling rates to reducing landfill. Councils can align waste management with their broader environmental strategies, ensuring services contribute to long term community resilience.
Insourcing rebuilds internal expertise and reduces reliance on external markets that can fail or withdraw. Councils strengthen their own capacity to manage services, making waste collection more resilient during crises, supply chain disruptions, or contractor collapse.
Changing policy
In 2022, South Ribble Council (Lancashire) insourced their waste contract. This decision was made to respond quickly to changes in national policy or waste and recycling without the imposition of contract terms; improve terms and conditions for employees; and manage reputational risk which ultimately falls upon the council irrespective of how the service is sourced.
44 staff moved across to the council and these staff now receive South Ribble Council terms on the Shared Service pay scales, resulting in better rates of pay. They are now eligible for a more beneficial pension through the Local Government Pension Scheme which provides a 16.5 per cent contribution compared to a 3-8 per cent contribution for most staff under FCC terms. These staff now also receive sick pay and additional annual leave.
Making the change means that the money that was previously spent on a contract is retained within in the borough, with a greater amount directed toward staff, residents and the local area.
Furthermore, the council can now more readily incorporate and adapt to local needs without undertaking complex contract negotiation.
Recent examples such as Havant Borough Council and South Ribble Council illustrate a wider trend of local authorities reassessing how waste services are delivered. Insourcing is being adopted as a way to increase flexibility, reduce reliance on external contractors, and ensure services can be aligned more closely with council priorities.
For staff, TUPE transfers into council employment often bring changes in pay, pensions, and conditions. For councils, the move can provide greater transparency over costs, direct accountability for service performance, and the ability to adapt operations without renegotiating contracts. In practice, insourcing has allowed authorities to retain more resources locally, strengthen resilience, and respond more effectively to policy changes and resident expectations.
