Introducing a fifth bin for food waste into Wolverhampton’s homes will save taxpayers’ money, it was claimed today.

Councillor Barry Findlay, cabinet member for the environment at Wolverhampton City Council, said a proposal to offer a food “caddy” to households so they can separate their scraps would reduce the amount of rubbish sent to landfill, which costs hundreds of thousands in landfill tax.

He revealed to the cabinet resources panel last night that 56 per cent of Wolverhampton’s rubbish is set to an incinerator in the city where it is turned into electricity.

The rates of recycling in Wolverhampton have risen from 25 per cent in 2007 to 34 per cent.

Councillor Findlay said: “The landfill taxes are very high so we have to make sure we send as little as possible that way.”

The proposals for the bin, which could be introduced from March, were welcomed by the Liberal Democrats.

Councillor Robin Lawrence said: “We have been pressing for this for a while. This sort of scheme has worked very well in areas like Bristol and I am confident that people in Wolverhampton will be equally enthusiastic.”

The plan, revealed in the Express & Star yesterday, would see a 25 litre bin distributed to every home on top of the existing wheelie bins for regular and garden waste, boxes for glass, paper and can recycling and bags for cardboard and plastic recycling.

The council has applied for external funding to launch the food bins.