UKFT secures levy rebate extension

21/11/2024

The UK Fashion and Textiles Association has secured a six-year extension to the Climate Change Levy (CCL) rebate scheme for the textile industry. 

The new scheme will run from 1 January 2026 to March 2033.

The Climate Change Levy was introduced as an energy tax payable by all business. However, some industrial sectors were offered a rebate return for agreeing to specific energy reduction targets. For the textile industry only the wet processing sector (dyeing, printing, coating and associated drying and finishing activities) along with spinning, weaving and knitting (and other similar processes) are eligible for the discount.

The CCL rebate scheme for the textile industry is administered by UKFT. UKFT will help companies complete all the necessary paperwork, will submit all necessary registration details to the Environment Agency. 

Adam Mansell, CEO of UKFT, said: “The current scheme saves the textile industry approximately £5 million a year so a new six-year scheme is extremely positive news.”