Peers say UK’s failure to prosecute waste crime has created a lucrative market for organised gangs

Organised crime groups in the UK are making millions of pounds each year from illegally dumping and burning waste, according to a Lords committee that has accused ministers of allowing a “low-risk, high-reward” criminal culture to flourish.

In a letter to the environment secretary, Emma Reynolds, the House of Lords environment and climate change committee said “criminality is endemic” in the waste sector, warning that at least 38 million tonnes of waste are illegally managed every year, causing serious environmental, economic and social harm. Peers called for a “root and branch review” of how waste crime is investigated and prosecuted, saying the lack of enforcement has created fertile ground for organised gangs to operate unchecked.

According to evidence presented to the committee, waste crime costs the UK economy £1bn annually in clean-up, enforcement and lost tax revenue, including an estimated £150m evaded in landfill tax alone. The peers said weak enforcement has left the waste industry open to exploitation by professional criminals who view it as an easy and profitable way to make money.

The committee’s letter stated: “We have heard credible evidence of numerous specific examples of the failure of the Environment Agency to pursue repeated reports of serious waste crime, effectively utilise the powers available to it, or bring successful prosecutions against perpetrators.” It added that the record of convictions was “woeful” and that the police had shown “a lack of interest” in tackling organised waste crime, which it described as a “gateway” to other serious offences such as drug trafficking and money laundering.

Peers said the system for reporting and investigating waste crime had become a “merry-go-round”, with members of the public passed from agency to agency without any single body taking responsibility. As a result, offenders face little chance of being caught or punished, while legitimate waste operators are undercut by criminals who can dump material at a fraction of the legal cost.

The committee cited what it called “egregious events” at Hoad’s Wood in Kent as evidence of systemic failure. Members of the public first reported large-scale fly-tipping there in 2020, but it took until January 2024 for the Environment Agency to secure a restriction order. By then, more than 30,000 tonnes of household and construction waste had been dumped on the protected site in piles up to 15 feet high.

In its response, an Environment Agency spokesperson said: “Waste crime is toxic and causes serious harm to people, places, the environment and the economy. We recognise the recommendations of the report and are committed to doing more.” The agency said it had shut down 462 illegal waste sites last year and prevented nearly 34,000 tonnes of waste from being illegally exported, adding that it was working with partners to bring offenders to justice through “tough enforcement and prosecution”.

Despite those assurances, the committee said the current system remains unfit for purpose. It urged ministers to explain within 18 months why so many serious crimes have gone unpunished and to end what it called the “merry-go-round” of agencies that allows waste criminals to evade accountability.

Campaigners and environmental groups have long warned that the waste sector’s combination of high profits, weak oversight and minimal penalties has made it a magnet for organised crime. The Lords’ report concludes that until government and law enforcement treat waste crime as seriously as other forms of organised offending, the illegal dumping and burning of rubbish will continue to poison the environment while enriching those responsible.