A CASH incentive scheme to reward households that recycle waste has been scrapped.

Teesdale District Council's social and environmental policy committee yesterday voted to abolish the £10 reward scheme after it heard it could have severe financial implications on the authority.

The reward scheme for households that put out recycling boxes 80 per cent of the year was initially launched with the council's wheelie bins in early 2003.

But the council had a number of problems with the supply of recycling boxes and with the bar code software needed to identify which houses had been recycling.

And if only half the households in the district took advantage of the incentive the council could still face a £60,000 bill.

Director of community services Mark Ladyman said: "This could have quite large financial ramifications. When a council is in such financial difficulties as we are, that obviously could not be sustained. It does leave the council in a rather embarrassing position."

Councillor John Watson argued the bonus should remain because the council knew its financial position when it agreed the scheme.

He said: "We can't say we didn't go into this with our eyes open. People are paying a hefty amount of council tax and I've had people saying they've allowed for this to help them pay it."

But the council's chief executive, Charles Anderson, said nobody knew how bad the financial situation was going to be.

"I don't relish going back on the council's corporate word at all, but circumstances make it all very difficult. We will acknowledge to the communities of Teesdale that we are sorry," he said.

The council will look at ways to encourage recycling through education, and an incentive scheme that offers payment in kind.

l A proposal to introduce charges for collection of bulky waste items in Teesdale could be dropped.

The committee agreed to refer the decision to the full council after it heard the authority might be able to afford the service.

Director of community services Mark Ladyman said the council had been allocated money from elsewhere and may be able to continue running a free service.

Committee chairman Councillor Ken Robinson said: "This is a very, very popular service. I would recommend that it is referred to the council so it can be looked at with other particular bids."

The council had planned to charge £10 for the collection of bulky waste and £15 for white goods. It was estimated this could realise extra income of approximately £13,000 a year.