DORSET Waste Partnership is having to find an extra £383,000 from its reserves to meet the extra cost of new minimum wage legislation.

The partnership heard at a meeting this week that it may also have to dip again into its £1.2 million reserve fund to meet a budget shortfall – currently predicted to be £74,000 at the start of the new financial year in April.

The figure is an improvement on a previously reported expected shortfall of £180,000.

DWP, which is jointly owned by Dorset councils, has an annual revenue budget of around £33 million.

Part of the projected overspend has been blamed on higher than anticipated spending on fuel costs and extra maintenance costs, including spare parts for vehicles. A drop in the international price for recycled materials has also had a major effect, effectively costing the partnership £664,000 to date.

On the plus side there has been savings because of waste levels being below what was expected, which has also reduced transport costs, and better than expected income from people joining the garden waste scheme across the county.

A report to councillors on Thursday showed the Dorset service costs £140 per household, compared to £171 in Wiltshire.