
According to WRAP, the collapse of the UK’s used textile sector could result in an extra annual burden of £64m ($86.5m) in disposal gate fees for local governments. This figure comes on top of the existing £73m that municipalities spend on processing textiles that are discarded by residents.
Additionally, there would be immediate environmental consequences, with an estimated increase of approximately 2.5m tonnes of CO2 equivalent per year due to a rise in landfilling and incineration of discarded garments.
Furthermore, the current expense associated with the collection and sorting of end-of-life textiles, including home textiles, stands at an estimated £88m annually, as detailed in the report.
The report warns of significant financial implications if the responsibility for collecting and disposing unwanted clothing shifts to local councils without adequate funding support. By 2035, it is projected that these costs could escalate to as much as £200m annually.
WRAP’s new CEO Catherine David said: “The charity sector plays a vital role in enabling a circular economy for fashion in the UK – a role it has been playing for over a hundred years. The sector now faces a crisis, with storage rooms up and down the country bursting with unsellable stock that collectors refuse to take. The knock-on effects of this are huge, with charities struggling to generate revenue, and the circular economy for clothes grinding to a halt.
“There is a way out of this mess – we call on the sector to join us in realising the vision recommended in this report, and to work together towards creating a circular economy for textiles through ACT UK (the Automatic-sorting for Circularity in Textiles project).”

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By GlobalDataMeasures to tackle the crisis
In response to the looming crisis, WRAP has proposed three solutions: automatic sorting technology, Extended Producer Responsibility (EPR), and a redesign of retailer take-back schemes.
Automatic sorting
ACT UK involved 18 partners from various points in the textile value chain. The project’s goal was to create a blueprint for advanced sorting and pre-processing facilities in the UK that could facilitate recycling of textiles and maintain resource value within the economy.
During trials, up to 46% more textiles were collected when the public was given the opportunity to donate alongside reusable items.
The establishment of 14 advanced sorting and pre-processing facilities with a capacity of 25,000t per year each in the UK could potentially halve the cost of collecting and sorting worn-out clothing by 2035.
Extended Producer Responsibility
EPR policy is being developed globally as a way to fund textile collection, sorting, and recycling efforts.
WRAP has developed policy recommendations at the government’s request and is collaborating with other NGOs to establish an industry-agreed EPR framework over the next year.
Retailer take-back schemes
Additionally, based on insights from the ACT UK project and its work under the UK Textiles Pact, WRAP proposes a new collaborative approach to retailer take-back schemes through its Textile Collections System Transition Programme.
This initiative seeks partnerships with leading brands to co-design consumer-friendly, efficient take-back schemes that benefit both consumers and the industry.
WRAP also calls for brands and retailers to join forces with its partners to expedite this mutually beneficial approach for the textile industry at large.
A study released in February by WRAP and prominent resale and repair enterprises, revealed the significant influence that various circular economy models are having in reducing the demand for new clothing.