Financial incentives would do more to increase recycling rates than "pay-as-you-throw" bin charges, according to a new report.

The New Local Government Network said that community rewards, such as funding for a local park or to improve street lighting, would help cut the amount of waste.

"Introducing penalising charges for waste will not assist in the amount of rubbish society throws away," the study said.

NLGN director Chris Leslie said households should not be "persecuted" by individual fines for throwing away too much rubbish.

"By offering local communities financial incentives, residents would be able to benefit their locality as well as the wider environment," he added.

"With landfill tax increasing year on year and some authorities spending millions of pounds dealing with the problem of rubbish disposal, it is clear that the government has to adopt a new approach to this challenge."

Paul Bettison, the chairman of the Local Government Association's environment board, said: "Financial incentive schemes should be exactly what they say on the tin.

"Any council that looks to introduce these measures will do so to promote recycling and reward local people who do their bit for the environment. No resident need lose out provided they are prepared to recycle.

"There will be parts of the country where these schemes are not appropriate, but the final decision should be made by local councils in response to local need and in consultation with local people."