This thread brings back memories and set me off websearching. I found this
http://www.myhomefront.org.uk/make.html
There was not much need for clothes recycling at our house because mum and dad were mill workers and got loom end offcuts. I had cotton dresses made from poplin shirting, but I do remember reknitting woolen jumpers, and darning socks.
My mum ran a 'racket' in clothing coupons.
My great aunt had a boarding house in Bispham.
Nearby Norbreck Hydro was a whitehall outpost of London civil servants.
Those women would exchange good classy clothes just for some coupons to buy some new ones.
Mum would collect coupons from friends and return with clothes for them