Batteries are full of toxic materials so the safest way to dispose of old cordless power tool batteries is to recycle them. The toxic materials can be retrieved and re-used in new batteries so they are not released into the environment.
Under the Waste Electrical and Electronic Equipment (WEEE) Directive all sellers who sell more than 32kg of batteries a year will receive old batteries back for recycling. You may find that your local council collects them too, sometimes as an extra part of the normal household waste collection.
There are restrictions on sending used nickel batteries or damaged lithium batteries by post because they are classified as dangerous goods, so you will probably need to drop them off at a collection point or have them collected by your council or special courier. Follow the guidelines of the courier service when packaging the batteries.
They shouldn’t be put in household waste as they are an explosion risk and they should never be burnt because they will release toxic fumes and materials.