Why Are Skip Hire Prices Increasing? Understanding the Impact of Rising Costs

Written by Nick Towens

Quickfire Summary:

• Towens is increasing skip hire prices due to rising business costs.
• Landfill tax has increased by 22.7%, contributing to higher operational expenses.
• National Insurance contributions, the National Living Wage increase, and Energy Recovery Facility (ERF) costs are also factors.
• Towens remains committed to providing cost-effective and sustainable waste management solutions.
• We continue to recycle or reuse over 90% of the waste we handle.

Here at Towens, we’re committed to providing sustainable waste management and popular skip hire services that benefit both our customers and the environment. However, with business costs increasing across the board, we’re unfortunately having to adjust our skip hire prices on March 10^th to reflect the current economic climate. We want to be transparent with you about why these changes are necessary and how we plan to continue offering the best service possible despite the challenges.

In this blog post, we’ll explain the reasons behind the price increase and why these changes are unavoidable. But, we’ll reassure you that Towens is dedicated to maintaining the same level of service and sustainability we’ve always prided ourselves on.

Why Are Skip Hire Prices Increasing?

As of March 10th, Towens will be adjusting our skip hire prices due to a combination of rising costs across the waste management and haulage industries. These price changes reflect industry-wide challenges and are essential for us to continue delivering the high-quality services you expect from us. Let’s take a look at the key factors influencing these price adjustments:

The 22.7% Rise in Landfill Tax

Landfill tax is one of the most significant factors driving up the cost of waste disposal. This tax, which is levied on the disposal of waste to landfill, has risen by 22.7% in recent months. As a company focused on recycling and reducing waste to landfill, this increase directly impacts the cost of our services, as we have to account for higher disposal fees when waste cannot be recycled or repurposed.

We do endeavour to avoid landfill wherever possible, with 92% of all the waste we receive in our skips recycled at our specialist facilities, amongst the area’s best rates. Although the change is noticeable when dealing with heavy waste or bulky items that may not be easily recycled or reused.

Increased Operating Costs at Energy Recovery Facilities (ERFs)

Energy Recovery Facilities (ERFs) are integral to the waste management process, turning non-recyclable waste into energy. These facilities have also seen a significant rise in operating costs, which means that the cost of processing certain types of waste has gone up. At Towens, we strive to minimise the amount of waste sent to ERFs, but when waste needs to be processed this way, these increased costs inevitably affect our pricing.

For example, if you have light waste or materials that don’t qualify for recycling, they may need to be processed at an ERF, increasing the overall disposal costs. It’s worth noting that even with these increases, we remain committed to keeping our services as cost-effective as possible.

Increased National Insurance Contributions & National Living Wage

Changes in national policy have led to higher National Insurance contributions and an increase in the National Living Wage. These factors impact our staffing costs, as we want to ensure we provide our team with fair compensation for the hard work they do in managing your waste. These increases contribute to the overall rise in costs.

General Inflation and Rising Business Costs

Inflation and the rising cost of goods and services in the UK are a reality for all businesses. Whether it’s fuel costs for our fleet of vehicles, maintenance of our equipment, or the rising prices of materials used in our operations, these everyday expenses add up. As part of the wider industry, we’ve seen these costs rise by an average of 9.5% across the board, which affects everything from the prices of skips to the running of our recycling facilities.

These rising costs are also reflected in the different skip sizes and services we offer. Whether you need a mini skip for a small domestic job or a larger grab hire for heavy waste, these factors are all contributing to the adjustments in our pricing.

Towens’ Commitment to Sustainability and Cost-Effective Services

While these price increases may seem concerning, we want to reassure you that Towens remains as committed as ever to providing affordable, sustainable waste management solutions. Our long-term goal is to ensure that as much waste as possible is recycled, reused, or recovered, with minimal waste going to landfill.

Over the years, we’ve managed to recycle or reuse 92% of the waste that passes through our facilities. We’re proud to be part of the circular economy, helping to reduce the need for raw materials and supporting sustainable construction practices. For example, our recycled aggregates plant in Westonzoyland is helping reduce the need for quarried sand and stone in Somerset, which contributes to conserving natural resources.

Despite the rising costs, we will continue to:

• Provide skips in a range of sizes, from mini skips to large 12-yard skips, to accommodate all types of waste disposal needs, including bulky items or heavy waste.
• Recycle or repurpose 92% of the waste we handle, diverting it from landfill and turning it into valuable materials like topsoil and aggregates.
• Offer a reliable and professional service with competitive prices in Somerset and beyond, ensuring that your waste is dealt with efficiently and sustainably.

The Future of Towens and Sustainability

At Towens, we’ve always taken a long-term approach to business and sustainability. We understand that changes in pricing can be frustrating, but we’re continuously investing in the future of our business and our environmental goals. We are committed to reducing the carbon footprint of waste disposal, and we are always looking for innovative ways to increase the amount of waste we recycle.

Moving forward, we will continue to focus on improving our operations, expanding our recycling facilities, and exploring new solutions that can help our customers dispose of their waste in the most sustainable way possible.

We also want to make it clear that if you have any questions about our pricing changes or require more information on our services, we are more than happy to help. Our team is available to answer any queries, assist with skip sizes, and guide you through the process of booking a skip, including whether you need a skip permit for placing it on public land.

Whether you’re hiring a skip for a domestic project, commercial job, or construction waste disposal, Towens will continue to provide you with the best service at competitive prices, ensuring that your waste is disposed of responsibly and sustainably.

Thank you for your understanding, and we look forward to continuing to serve you.