Experience from other European countries has shown that this level of financial incentive is enough to change behaviour, reduce waste and save taxpayers' money, said environment minister Joan Ruddock.
She was speaking as the Government released new guidance on the pilot incentive schemes due to start operating in five trial areas of England from April 2009.
The proposal comes in new guidance to town halls planning to take part in the controversial in five bin tax pilot schemes in England.
Tories dismissed the concept as 'ludicrous' and accused the Government of creating a 'stealth tax' through the unworkable rubbish charges.
But Environment Minister Joan Ruddock said experience from other European countries has shown that a financial incentive is enough to change behaviour, reduce waste and save taxpayers' money. She said that those who recycled their rubbish could also get rewards.
Shadow Local Government Secretary, Eric Pickles, said: “Forget lock up your daughters lock up your bins. Bin taxes are going to spark neighbourhood bin wars as people try to dodge paying the tax and dump their rubbish in other people’s bins.
"Bin taxes are completely discredited, but Labour Ministers are arrogantly pushing ahead and ignoring the public.
"Bin taxes will harm the environment, leading to a surge in fly-tipping and backyard burning. I fear this latest round of stealth taxation will push up the cost of living to breaking point making it even harder for families who are now struggling to make ends meet under Labour."
**I love the way that they "offer" a do as we say reward suggestion. I wonder quite what the reward will be £10 for grassing up your next door neighbour who dropped a sweet wrapper, a quisling of the week award with certificate presented by a local PCSO.The best reward we as taxpayers could get is to have weekly collections, a lowering of council taxes and the immediate removal of legions of feckless overpaid council workers.
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