As a rule recycling plants don’t like shredded paper in the mix because it is too small to sort falls through the system and clogs up the machinery.
The paper mills don’t like a lot, partly for the same reasons but also as it is not great for recycling: When you shred paper, what you’re actually doing is cutting the lengths of the individual paper fibres, thus cutting the future recycling potential of that fibre. The length of a paper fibre determines its value since a longer fibre can be used to make a higher-grade paper and can be recycled more times.
Discounted compost bins available from www.getcomposting.com - Good compost is made from 50% wet items (e.g. grass, fruit and veg peelings and 50% dry items (e.g. dry leaves, cardboard, shredded paper)