Householders could be offered shop discount vouchers under a proposal to get them to recycle more.

Harborough District Council is looking at a scheme where it would distribute wheelie bins with computer chips.

Residents would fill them with recyclable cans, glass bottles, jars, plastic, paper and cardboard and earn reward points depending on the weight of their bins.

The points could then be exchanged for money-off deals with major retail chains, local participating businesses and leisure centres.

Executive spokesman for waste and recycling, Councillor Steve Charlish, said: "We have had tentative discussions with a company that could run it for us."

The council currently recycles 53 per cent of household waste and is one of the top performing authorities in the UK.

But Mr Charlish said more needed to be done to reach a target 60 per cent rate.

He said the potential scheme could be based on one launched by the Royal Borough of Windsor and Maidenhead Council last month .

There, chipped bins have been sent to 30,000 homes and 106 shops, leisure centres, businesses, attractions and cafes and restaurants have agreed to offer discounts

A council spokesman said: "Put simply, the greater the amount of recyclable waste put in the bin the greater the rewards available up to a limit of £135.

"The exact figures are not available but recycling rates are going up.

"The scheme works by fitting electronic tags to the bins with the weight recorded by equipment in the collection vehicles."

Residents would have another bin, without a chip, for non-recyclable rubbish.

Mr Charlish said: "The concern we would have is that residents get a bit jumpy whenever you talk about chips and bins. The phrase 'bin police' always crops up but there is potential in looking at the idea."

Mario Minichiello, who lives in Scotland Road, Little Bowden, said he thought the incentive scheme was a good idea if it was voluntary.

He said: "It's probably good to weigh waste and reward people for recycling more but the worry would be that they look for a way to turn the clock the other way and start penalising you for throwing away too much other rubbish."

Yesterday, the Government announced a full review of waste-management policies.

Environment Secretary Caroline Spelman wants businesses, households, communities, and local authorities in England to comment on potential change.

She said: "Reducing waste needs to be made as easy as possible for people. It should be driven by incentives, not penalties and common sense, rather than coercion."