What is the Landfill Communities Fund?

SITA Trust distributes funding though the Government's 'Landfill Communities Fund' (LCF). The LCF is a funding scheme for community and environmental projects around landfill sites. A large number of organisations have been set up to distribute funding through the LCF, SITA Trust is one of the largest and the first to have been accredited by the LCF regulator ENTRUST.

Landfill operators collect a tax for every tonne of waste they collect. This tax is designed to reduce the amount of waste that is sent to landfill each year. A proportion of the tax that landfill operators collect can be allocated to the Landfill Communities Fund. This amount currently stands at 5.6% but is decided in the Budget each year.

Tax on landfill waste was introduced in 1996 as a means to reduce the amount of land-filled waste and to promote a shift to more environmentally sustainable methods of waste management. Alongside this tax the government introduced the Landfill Communities Fund (LCF) an innovative tax credit scheme that enables operators of landfill sites to voluntarily contribute money to enrolled Environmental Bodies (EBs) like SITA Trust to carry out projects that meet environmental objects contained in the Landfill Tax Regulations.

The Government saw the LCF as a way to create significant environmental benefits and jobs and to undertake projects which improve community life.
 
SITA UK contributes most of their landfill tax liability (5.6% for 2012-13) to, independent environmental body, SITA Trust, and reclaims 90% of this contribution as a tax credit. The remaining 10% is then repaid to SITA UK by an independent third party when grants are given. This payment is expected from all successful applicants to SITA Trust’s funding programmes.


All distributors of Landfill Communities funding are regulated by ENTRUST on behalf of HM Revenue and Customs.

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What is the Contributing Third Party Payment (CTP)?

The CTP is a non-refundable payment that must be paid before funding can be unlocked.

Contributing Third Party payment (CTP)

Before SITA Trust can release funding to a supported project we need to receive a payment called the Contributing Third Party payment (CTP). This payment is unique to the Landfill Communities Fund.

Why?
Under the Landfill Communities Fund scheme rules, SITA UK (our donor) can contribute some of the landfill tax it collects to SITA Trust, and reclaim most (but not all) as a tax credit. The scheme regulator requires a fee and each successful application also incurs other minor costs.

To make up the shortfall, SITA UK requires that 11% of the money provided is recovered from third parties. We call this element the Contributing Third Party (CTP) payment.

Under the rules, Landfill Communities Fund money cannot be used to provide the CTP so it must be raised from other sources. The CTP is paid to SITA UK and not SITA Trust but neither SITA UK nor SITA Trust will benefit financially.

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Does SITA UK make a profit from the CTP?

No. SITA UK receives a tax credit of most of the money that it pays to HM Revenue and Customs. However, when SITA UK pays money to SITA Trust for onward distribution it has to add some of its own money onto the amount. So, the contributing third party payment(CTP), when it is returned to SITA UK pays back this money. It doesn't, however, cover the cost of interest losses incurred by SITA UK and the company makes no profit from the scheme.

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Do we have to register with ENTRUST as an Environmental Body before we apply for a grant?

The term 'Environmental Body' is used by ENTRUST to describe organisations that can manage Landfill Communities funding. Some funders require applicants to have registered with the scheme regulator ENTRUST before an application is made.

SITA Trust does not require applicants to have registered with ENTRUST because, as an accredited environmental body  we will register the project  ourselves if it is successful. 
 


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Does every landfill operator donate to the Landfill Communities Fund?

No, it is a voluntary scheme. Landfill Operators do not benefit financially from taking part.

Many landfill operators donate to Distributive Environmental Bodies like ourselves. SITA UK provides our funding.

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What is ENTRUST?

ENTRUST is the regulator of the Landfill Communities Fund. ENTRUST regulates the LCF on behalf of HM Revenue and Customs and audits organisations that distribute Landfill Communities Funding.

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I've heard that the LCF has funding 'objects' - what are these?

Funding 'Objects' are guidelines on the types of projects that can be supported through the Landfill Communities Fund. SITA Trust supports the following 'objects':

1. Object D - improvements to community amenities
2. Object E - improvements to historic buildings and places of worship
3. Object DA - biodiversity projects

Instead of referring to these objects, SITA Trust has names for its funding programmes, Enriching Nature and Enhancing Communities. Objects D& E fall into the community fund and Object DA into the nature fund.

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Why do LCF funders sometimes have different rules?

All funders must comply with the rules of the Landfill Communities Fund. They can only fund projects that are eligible for funding through the Scheme. Please note, however, that funders may also have additional criteria. SITA Trust, for example, will only fund projects on school sites if the facility is run by an organisation which is separately managed from the school and has it's own access.

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Why is SITA Trust also referred to as a Distributive Environmental Body?

It means that the Trust is a registered Environmental Body with ENTRUST (the Landfill Communities Fund regulator), that can distribute funding to eligible projects.

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Does SITA UK run the Trust?

No, the Trust is run by its own Board of Directors. The majority of Board members are independent people who are not employed by SITA UK.

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Can I re-apply for funding if my application has been turned down?

If your application has got to the shortlisting stage then you will have to wait 12 months before you can reapply for a project at the same site.

If your application did not reach the shortlisting stage you may be able to reapply at the next deadline.

Give us a call  on 01454 262910 and we will tell you the earliest date you can re-apply for funding.

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