The UK’s textile recycling sector is under severe financial pressure, costing an estimated £88 million annually, according to a new warning from environmental charity WRAP. The organisation cautions that unless action is taken soon, the industry could collapse, which would leave local councils, charities, and consumers to pick up the bill.
WRAP estimates that local authorities already spend £72 million a year managing textiles. If the recycling infrastructure fails, councils could face an additional £64 million in disposal costs annually. There would also be significant environmental damage, with up to 2.5 million tonnes of CO₂ equivalent emissions created by diverting clothes to landfill or incineration.
Catherine David, WRAP’s incoming CEO, described the situation as a crisis for a sector that has been central to the UK’s circular fashion economy for over a century. She said charity shops are now overwhelmed with unsellable stock and struggling to make money from clothing donations, while collectors are refusing to take more items due to oversupply and plummeting resale value.
Historically, second-hand clothing was exported to overseas markets to help offset processing costs. However, demand has dropped, leaving businesses unable to cover their expenses, with many now operating at a loss.
In response, WRAP is leading the ACT UK initiative, which will trial advanced sorting technology to improve how textiles are sorted for reuse and recycling. It is also launching a programme to help brands and retailers co-design effective take-back schemes.
WRAP has warned that without immediate funding and structural change, the burden on councils could rise to £200 million per year by 2035.
