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The Department for Environment, Food and Rural Affairs (Defra) is inviting local authorities to run waste incentive pilot schemes.
Local councils will have the opportunity to participate if the powers to enable the pilots are granted under the climate change bill, which is currently being debated.
Under the schemes, which will require the approval of the environment secretary, people can be rewarded or charged depending on the amount of unrecycled waste their households produce.
However, all schemes must be "revenue neutral" so revenue generated through charges will be distributed as rewards.
Environment minister Joan Ruddock said: "Evidence from countries where these schemes already operate is that charges and rebates of around £50 are enough to change behaviour and deliver real benefits for waste reduction."
The way the pilot schemes will be run is to be left up to the five local authorities qualifying for the initiative, she added.
Last week, Defra launched a consultation to determine the best ways to tackle waste crime.
