UKFT is delighted to secure 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.

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.”

The scheme will operate in a very similar way to the previous schemes in that it will give participants discounted CCL rates in exchange for companies agreeing energy reduction targets. There has been no change in the definition of those companies that are eligible to join the scheme. All companies in the existing scheme that have either met their current target or have paid the equivalent buy-out fee should be eligible to join the new scheme. UKFT anticipates that companies in the current scheme will just be automatically enrolled in the new scheme.

2022 will be the new baseline year for the next edition of the scheme and there will be three target periods:

• TP1 1 January 2026 to 31 December 2026 (i.e. 12 months)
• TP2 1 January 2027 to 31 December 2028 (i.e. 24 months)
• TP3 1 January 2029 to 31 December 2030 (i.e. 24 months)

There are expected to be other notable differences to the scheme, as follows:

• Annual reporting is expected to be minimal, with target periods set every two years.
• There will be a mandatory annual self certification regarding the 70/30 rule
• A new standardised target type will eliminate any confusion around ‘relative’ or ‘novem’ measures.
• Surpluses can be used within the new scheme, but those from the current scheme cannot be carried over.

The energy reduction target has not yet been announced. UKFT will advise when this has been confirmed.

About CCL

The Climate Change Levy was introduced as an energy tax payable by all business. However, some industrial sectors were offered a rebate in the Levy in 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. UKFT collect and monitor company’s performance every three months and help companies develop strategies to meet their energy reduction targets.

There are costs involved in taking part in the scheme. There is a fee of £185 that is payable to the Environment Agency, a UKFT joining fee of £250 and then an administration fee payable to UKFT of an annual 5% of the savings achieved through the scheme. This figure drops to 3% for those companies that are members of UKFT or are a member of an organisation that in turn is a member of UKFT (view our Federated Members here).

To register your interest and to receive further information please email ana.findlator@ukft.org