I almost didn't believe it but googled and found this report http://www.bbc.co.uk/news/uk-england-18580191 and it seems the situation is quite common over the country.
I can't see the logic in this move myself, it's meant as a cost saving measure but surely it will just increase the pressure on landfill in the medium to long term. Our local council also sell the compost they creat from the collections although I suppose the cost savings would be in labour and machinery.
I don't use the bin much myself as I tend to compost most of our waste although it was useful when I removed a leylandi for someone recently but I can't really see loads of compost heaps sprouting up in back gardens if people can simply send their waste to landfill.
I know that times are hard and savings have to be made but to me it seems to smack a bit of a lack of common sense.
Still good side is I can use the "banging head on wall" smilie,

Pete