Waste company Viridor has reached a £1.75m settlement with Milton Keynes Council to end a row about contamination of materials delivered to the city’s MRF.
A Viridor spokesperson said it had been agreed the council would cover the historic costs of contamination in the council’s recycling sacks between 2013-19.
The council owns the MRF but Viridor carries out the processing, and is entitled under its contract to sell material that can be reused.
A council statement said around 25% of sacks were contaminated by dirty nappies, pet waste and food meaning that materials in them could not be recovered.
It explained: “This is higher than the tolerance for contamination built into the recycling contract…if contamination levels continue at their current levels, it will cost hundreds of thousands of pounds every year in penalty fees.”
The council asked residents to take more care about what they put in recycling sacks to avoid unnecessary future costs.