The increase in recycling was welcomed by the Friends of the Earth but the pressure group warned much more needed to be done to catch up with other European countries.
Mike Childs, campaigns director at Friends of the Earth, said: "This is very good news that the reward system is working.
"But we still have some of the poorest recycling rates in Europe, and so the government has to look at ways of encouraging people to recycle more.
"This may involve charging people for the amount of rubbish they produce but providing them with a free recycling service."
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