CCA can save laundries £millions – but opportunity ends on March 31 2022

Government agrees to reopen Climate Change Agreement scheme temporarily

If a commercial laundry isn’t registered for the Climate Change Agreement Scheme (CCA) then it’s missing out.  TSA has lobbied government agencies to reopen the scheme – and they have agreed, but only until the end of March 2022.  Once this window closes, that’s it. 

So what can commercial laundries get from signing up to a CCA?  Basically it gives a discount on the Climate Change Levy charged on their energy bills, and over the past two years alone, TSA members collectively have saved over £10million through the scheme.  Any commercial laundry can have a CCA – in order to receive the discount, they have to meet targets to increase energy efficiency and reduce carbon dioxide emissions. 

“It’s a no-brainer,” says David Stevens, CEO of the TSA.  “On the one the hand, initiatives like the CCA are vital if we are to combat climate change.  Meanwhile, the scheme offers significant cost savings for almost every commercial laundry.  At a time when our industry is faced with huge cost rises, ignoring the CCA is economic madness.”

Having a CCA, and partaking in the Climate Change Levy Discount Scheme, deliver significant savings.  They include discounts on the CCL charged of up to 92% on electricity, up to 83% on gas, and up to 77% on LPG, in return for meeting energy or carbon saving targets. 

CCAs are designed to encourage UK businesses to save energy and reduce carbon dioxide emissions. The TSA is one of 53 sector associations in the UK that have signed up to the CCA initiative, managing the scheme on behalf of the laundry and textiles industry. 

“We can be proud of our efforts to date,” says Stevens.  “Since 2013, the laundry industry has achieved over 25% energy efficiencies in primary energy alone – this is market-leading progress and one of the best energy efficiency figures across all of the 53 CCA sectors.   

“Now any commercial laundry that hasn’t got a CCA has the chance to get one – but they need to be quick about it!” 

Climate change consultants Jacobs is handling the CCA scheme for the TSA. To start the ball rolling get in touch with the Shyju Skariah at the TSA (shyju.skariah@tsa-uk.org) and he will answer any questions you have. The scheme is open to TSA members and non-members.  TSA members receive a 50% discount on the registration fees.

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Update from the TSA

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Laundry industry pleads for Government support on energy prices

Commercial laundries close to ‘throwing in the towel’ warns TSA

Just as commercial laundries serving the hospitality sector think they can see a light at the end of the Coronavirus pandemic tunnel, they face another crisis, this time because of the massive and unprecedented rise in energy prices.  The Textile Services Association (TSA) is warning that if the government ignores the industry again, and fails to offer support, then businesses will fail and the industries that rely on laundries, including hospitality, will face significant challenges.

Now the TSA has written to the Rt Hon. Kwasi Kwarteng MP, the Secretary of State for Business, Energy and Industrial Strategy (BEIS), pleading to include the commercial laundry industry in any support it may offer to energy intensive industries.

David Stevens, CEO of the TSA, says, “We are an energy intensive industry and are recognised as such, alongside areas like manufacturing, under the Climate Change Agreement.  Whilst we have worked incredibly hard to reduce consumption, you cannot operate an hygienic process without energy to wash and dry the products. Energy represents about 10% of a commercial laundry’s overhead.  When energy prices are quadrupling you don’t need to be a mathematician to work out the impact.”

Several organisations and politicians are calling on the government to offer energy intensive industries support in the short term.

John Reynolds, the Shadow Business Secretary, has been lobbying government, saying they should “Come out with a plan sooner rather than later, there are lots of options available including a mix of loans and grants.”   However, the TSA fears that laundries will miss out – again.

Commercial laundries missed out totally on any government support offered to the hospitality sector during Covid, because they do not directly deliver hospitality, despite being totally dependent on it (and despite hospitality being very much dependent on commercial laundries).  Similarly, in the past, energy grants have usually been limited to mainstream manufacturing industries, meaning commercial laundries have missed out.  

“We support any plan that helps our sector,” says Stevens.  “We have been to hell and back and really cannot face another crisis.  I can see many commercial laundries literally throwing in the towel if they are not offered support this time.”

Commercial laundries employ over 24,000 staff and wash over 50 million pieces of laundry a week, including over 90% of the NHS’s products and 95% of hotel linens. Virtually all food and pharmaceutical factories outsource their washing of workwear to laundries.  Without commercial laundries many parts of the UK economy would grind to a halt. 

If you have any queries, please do not hesitate to get in touch with us either via email or phone: 

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Laundry Cost Index: 2021/2022 FYQ3

Laundry Cost Index

Please see our latest published Laundry Cost Index for 2021/2022 FYQ3 below. Please note, as well as the Cost Index, a TSA Laundry Cost Index Bulletin for January 2022 has also been published to sit alongside the Cost Index. This statement has been produced to highlight the unprecedent cost pressures which are not reflected in the current Cost Index. A similar bulletin was produced previously as well and can be found here.  

Latest Laundry Cost Index & Bulletin

Please see the Previous Annual Increases below for comparison:

The Full Report
Annual Increase
Laundry Cost Index 2021/2022 FYQ2
5.92%
Laundry Cost Index 2021/2022 FYQ1
3.26%
Laundry Cost Index 2020/2021 FYQ4
1.43%
Laundry Cost Index 2020/2021 FYQ3
2.00%
Laundry Cost Index 2020/2021 FYQ2
1.64%
Laundry Cost Index 2020/2021 FYQ1
2.02%
Laundry Cost Index 2019/2020 FYQ4
2.73%
Laundry Cost Index 2019/2020 FYQ3
1.75%
Laundry Cost Index 2019/2020 FYQ2
2.95%
Laundry Cost Index 2019/2020 FYQ1
4.00%
Previous Laundry Cost Indices

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What are commercial laundries worth to the UK?

The textile services sector sits behind practically every sector of the UK economy

Research conducted by Hatch Regeneris concludes that the textile services industry is ‘core to the operation of many businesses in vital and important sectors of the UK economy.’  It highlights three markets of particular significance, hospitality, healthcare and manufacturing, concluding that without the support of the textile services industry they would face insurmountable problems.  Yet the long-term sustainability of textiles services in the UK is under considerable threat and action is needed if it is to survive. 

The research was commissioned by TSA, the Textile Services Association, and was carried out in 2020.  The key problems it highlighted are dramatically rising costs, downward pressure on prices and severe staff shortages.  However, since then the industry has suffered even more setbacks and its position is even more precarious.  “Brexit, the pandemic and escalating fuel costs have amplified the issues to a catastrophic extent,” says David Stevens, CEO of the TSA.  “Without serious price rises for customers and government support – at the very least in terms of access to the EU labour market – there is a real risk that many textile services companies will go out of business.” 

Textile services encompass the supply, rental, laundering and maintenance of textiles.  It ranges from bedding and towelling in hotels; to PPE and workwear in factories; to surgical, pharmaceutical and high-care food workwear; to mats, roller towels and washroom services in a wide range of sectors.   Each week the industry processes 53 million textile items to end users in the UK. 

The report estimates that the textiles services industry contributes a total of £1.3billion in GVA to the UK economy and £190million to the Exchequer, while supporting 28,000 FTE jobs.  It notes that hospitality is dependent on the industry, since the provision of clean, fresh linen is fundamental to their business.  Just one hotel with 100 bedrooms will get through 750 pieces of linen per day.  Similarly in manufacturing, the report says production lines would come to a standstill within three days of not receiving new workwear.  Meanwhile, healthcare and social care can’t function safely without bedlinens, surgical gowns and patient wear washed to very high specifications.  

Aside from those three key sectors, as the report points out, ‘the textiles services industry sits behind practically every sector in the UK economy.’ 

“If commercial textiles services ceased to operate, many UK businesses, industries and sectors would grind to a halt,” says Stevens.  “We continue to press the Government for help, but so far they continue to ignore us, despite organisations like UKHospitality and NHSI supporting our arguments.” 

The Hatch Regeneris research, ‘The Economic Value of the Textile Services Sector to the UK Economy,’ is available to download at tsa-uk.org, from the TSA publications section in the documents library. 

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Bradford-based Christeyns grow apprentice numbers

23 December 2021

Christeyns, who manufacture and supply detergents and supporting chemicals for the UK laundry sector, has recently taken on four new apprentices.

Isabel Hardwick has joined the firm as Apprentice Quality Control Technician following success in her A level examinations. Izzy’s apprenticeship will last four years and incorporates working towards a BSc (Honours) in Chemistry at Bradford University.

Danny Clarke and Tom Grundell have both taken up two-year apprenticeships as HGV Drivers. During this time, they will study to obtain an NVQ Level 2 in Supply Chain & Warehousing, as well as their LGV C+E (Class 1) Licences.

Most recently, Bradley Jones took on the role of Business Administration Apprentice, after previously working for Christeyns on a temporary contract in the Powder Production department. Bradley’s apprenticeship will run for two years and include studying for a Level 3 qualification in Business Administration.

The four new apprentices join Chemical Engineering apprentice Harry Coop, now in his second year of studying at Bradford University to achieve a BSc (Honours) in Chemistry, and Hena Arif, a QHSE Technician, who will study a Level 3 Health, Safety and Environmental qualification in 2022.

At the chemical manufacturing specialist, apprenticeships are very much a part of the business structure and play a crucial role in taking the company forward.  “Our apprenticeship scheme is key for succession planning, identifying and growing talent to fill leadership and business-critical positions in the future. This helps to keep the business at the top of its game,” states HR Manager Sarah Stringer.

Providing young people with the right skills and opportunities is vital for the future prosperity of both Christeyns and the industry, and the company views its apprenticeship scheme as a crucial part of the recruitment strategy.  Christeyns’ goal is to offer permanent roles to all apprentices who go through their scheme.

For further information visit:

www.christeyns.com

Commercial laundries plan Sustainability Pact

Green practices will support hospitality industry’s net zero carbon objectives (additional press releases published for Industrial & Healthcare)

The Textile Services Association (TSA) is putting together a Sustainability Pact that’s designed to support commercial laundries in their drive to deliver a more sustainable future.  The Pact will also support the hospitality industry’s net zero carbon objectives, but, as Shyju Skariah, technical services manager at the TSA, points out, “We just don’t want to focus on net zero carbon.  We also need to be tackling water quality, reducing waste – this is so much more than a simple net zero tag.’’ 

The TSA has set up a Sustainability Steering Group made up of representatives from laundry operators, machinery and textiles manufacturers, and end-users, including representation from UK Hospitality.  The objective for the group is to ensure that an holistic approach is taken, whether it is considering the complex end of life textiles recycling project, which will save millions of tonnes of textiles from landfill, or looking into simple measures, such as using low energy light bulbs. 

“The laundry industry has already come a long way in optimising and fine-tuning its processes and operations in a more sustainable way,” says Skariah.   

“We have seen water usage slashed, from 20 litres a kilo down to 2 litres, and energy usage halved. But we want to go much further.  Nothing is off agenda with this steering group.”

The Steering Group’s first task is to set up the initial Sustainability Pact, which the laundry industry will sign up to.  “We’ll run training workshops with experts so TSA members really understand what net zero means and how it can be achieved,” says Skariah.  “We’ll create tools for individual companies to track progress. Each company will set their own roadmap, enabling the TSA to compile an industrywide pathway.”

The Pact will be added to as new sustainability ideas and concepts are developed, along with the practical means to initiate them. 

David Stevens is CEO of the TSA.  He says, “Following COP26 and with the climate change issues being addressed at a corporate level, there has never been a better time to set the most challenging sustainability objectives for the UK commercial laundry industry.”

The TSA continues to work closely with government bodies to support the delivery of the UK’s net zero carbon commitments.  “We believe the laundry industry can surpass the current targets,” says Stevens.  “The Sustainability Pact, and the support we are putting in place around it, will be especially useful in helping SME laundry operators achieve their green objectives.

“The Pact shows our industry is driving for a sustainable solution.  It’s also a fantastic opportunity to demonstrate the benefits commercial laundries can bring to so many sectors of the economy, particularly around hospitality and healthcare.” 

If you have any queries, please do not hesitate to get in touch with us either via email or phone: 

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Update from the TSA

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TSA warns unprecedented cost increases could make commercial laundries unviable

Wages alone are up over 14%, with galloping increases elsewhere

The TSA’s wage survey of the commercial laundry sector found that labour costs have increased by a staggering 14.25% in the twelve months to October 2021. Over 86% of the TSA’s membership took part on the survey, underlining the alarm that the increases are causing throughout the industry. 

The TSA (Textile Services Association) is the trade body representing commercial laundries in the UK.  Its CEO David Stevens warns that, without significant price increases, the industry is simply not viable.  “Wages are the tip of the iceberg,” he says. “We have reports of energy prices going up 300%, insurance up 100%, textile costs up 50%.  It’s not sustainable. The industry was already reeling from the aftermath of the lockdowns and the lack of government support, but these increases are unprecedented. We’ve jumped out of the frying pan and into the fire.”   

Commercial laundries service the hospitality and industrial markets, as well as healthcare including the NHS. 

“The last thing we want to inflict on hospitality and healthcare is a big hike in prices, but it’s difficult to see any other options,” says Stevens. 

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