£88M a Year: Textile Collectors Buckle Under Mounting Waste Costs
A new report by WRAP has revealed that the UK’s second-hand clothing sector is under significant pressure – and without intervention, the consequences could be severe for both the economy and the environment.
£88 Million Annual Burden for Textile Handlers
According to the study, textile collectors and sorting companies are currently footing a bill of around £88 million a year just to manage used garments. Many of these businesses are on the brink of shutting down, unable to cover rising costs due to plummeting resale value and mounting volumes of low-quality donations.
If the sector collapses, the financial responsibility would shift to local authorities, charity shops and ultimately, consumers – with councils potentially facing an extra £64 million annually in gate fees to process unwanted clothing.
Charities Overwhelmed by Unsellable Stock
Catherine David, incoming CEO at WRAP, emphasised the sector’s vital role in supporting the UK’s circular fashion economy. However, charity shops across the country are now struggling to cope with unsellable stock that commercial collectors are refusing to take.
“The impact is massive,” said David. “Charities are losing income, warehouses are full, and the flow of clothing into second-hand and recycling streams is grinding to a halt.”
A Strain on Councils and the Environment
Local councils already spend £72 million each year handling textile waste. Without specialist collectors, councils will be forced to either pay more for textile disposal or increase their use of landfill and incineration – a choice that could lead to higher council tax and increased carbon emissions.
If more textiles end up being destroyed rather than reused or recycled, the UK could see an additional 2.5 million tonnes of CO₂e released annually.
A Warning for 2035: Costs Could Triple
WRAP has issued a stark forecast: without new investment and systemic change, council spending on textile waste could hit £200 million per year by 2035.
ACT UK: Automating the Future of Textile Sorting
To tackle the crisis, WRAP is leading the Automatic-sorting for Circularity in Textiles (ACT UK) project – an initiative aiming to transform how the UK handles used clothing.
ACT UK envisions a network of 14 high-capacity sorting facilities, each capable of processing 25,000 tonnes of textiles per year. These centres will pre-sort items by fibre type and condition, making them more valuable and easier to recycle.
If implemented, this infrastructure could cut the cost of collecting and sorting textiles by around 50% by 2035.
Shifting Responsibility to Producers
Another key recommendation in WRAP’s report is the introduction of eco-modulated Extended Producer Responsibility (EPR). This would make clothing producers financially accountable for the waste created by their products and encourage better design standards focused on durability and recyclability.
Rethinking Retailer Take-Back Schemes
WRAP also advocates for a new collaborative model to improve how retailers collect used textiles. Through its Textile Collections System Transition Programme, WRAP is working with brands to co-create more accessible and effective take-back schemes – ensuring they work both for consumers and the industry.
Retailers and brands are now being invited to join the initiative to help speed up this transformation and protect the future of UK textiles.