Household waste such as yoghurt pots, food trays and margarine tubs could soon be recycled as part of the government's Waste and Resources Action Programme (Wrap).
Recent trials carried out by Wrap revealed that many of these containers could be recycled if the right facilities were put in place.
The organisation is now offering a £2 million grant to a council or company that can come up with a viable system.
Commenting on the initiative, Marcus Gover, director of market development at Wrap, said: "The grant is designed to help stimulate the development of waste management infrastructure and boost recycling capacity by at least 40,000 tonnes per year by 2011."
The funding will help to create a world-class recycling industry in Britain, the organisation noted.
In related news, environment secretary Hilary Ben recently announced plans to overhaul packaging in the UK, by clamping down on retailers and manufacturers that produce excessive amounts of waste.
Written by Claire Manning
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