Fines of up to £100 could be issued to residents who refuse to recycle under plans being considered by Lambeth Council.

The fines would be issued to people who persistently refuse to put out their recyclable items, as the authority seeks to introduce compulsory recycling as it battles a rising bill to dispose of waste in landfill.

How enforcement would work is yet to be decided by town hall officers, but privacy campaigners have criticised methods used by some councils which have installed microchips in bins to monitor waste production.

Under plans introduced by Brent Council, as long as recycleables are placed in a green box outside their homes, residents are considered to be recycling – but fines can spiral to £1,000 if unpaid.

Lambeth’s concept has already been criticised by the chairwoman of a leading environmental group, who said it could encourage fly-tipping.

Others feared the move was just a revenue driver for the council.

Bridged Hall, from Sustainable Streatham, said: “Personally, I think the council should be looking at rewarding those who do recycle, as opposed to punishing those who don’t.

“From what I understand it will be very difficult to police.

“There is a real risk this kind of scheme could lead to people dumping their rubbish elsewhere, or stealing other people’s recycling to avoid fines.”

She said the council needed to look at making recycling easier, and encouraging re-use.

Councillor Lorna Campbell, cabinet member for environment on Lambeth Council, agreed reduction and re-use should come first, but said: “Reducing waste and increasing recycling is not just about helping the environment, it’s about keeping costs down too.

“We will all be hit in the pocket if we don’t act.”

A council spokesman said in a recent residents’ survey more than 3,000 people responded as showing overwhelming support for fining non-recyclers.

He said compulsory recycling has already been introduced in a number of London boroughs – and proven successful in changing the way people think about the waste they produce and boosting recycling rates.

He said the costs of disposing of waste were rising year-on-year, and the council would have to pay about £130 for every tonne of household waste it has to dispose of next year.

The total cost to taxpayers of collecting and disposing of waste is already £30m a year.

Liberal Democrat opposition leader, Councillor Ashley Lumsden, said the move could be seen as revenue raising, and the council should look instead at incentivising through rewards, rather than fines and suggested a cash prize for residents who recycled – or the promise of street improvements.

Exact details of how such a proposed scheme would work and be enforced will be drawn up if the principles are approved by cabinet members in November.