New Regulations
New metal scraping regulations came into force on December 3, 2012. See what new regulations you need to be prepared for—and why there’s now no cash for scrap.
For years, scrap‑metal dealers promoted their services by emphasising immediate settlement and no need for producing any documents. Cash payment not only became part of their competitive advantage but also a commonly expected standard. Complete anonymity, passing over the issue of the material’s origin, and fast cash settlements provided perfect conditions for the emergence of crime. Trading in scrap metal favoured breaking the law by both scrap‑collection companies and mobile, “itinerant” collectors. This is why a number of changes in settlement methods in scrap yards were introduced in 2012.
You Won’t Pay for Scrap Metal in Cash
Since December 3, 2012, all settlements for scrap metal in England and Wales have been non‑cash. The only legal payment methods are cheques, bank transfers, and other electronic payment methods—there is no cash for scrap anymore. The aim of the Scrap Metal Dealers Act 2013 and the original 2012 Act is to prevent thefts and reduce pollution by curbing illicit trading and encouraging proper recycling practices. Apart from the requirement of non‑cash settlements, the new regulations also:
- Oblige each scrap dealer to register with the local authorities
- Increase fines for crimes committed by scrap dealers
- Extend police powers, allowing them to enter a scrap yard with a warrant to check compliance
What About Itinerant Collectors?
Under the Scrap Metal Dealers Act 1964, “itinerant” scrap‑metal collectors could accept cash and were exempt from keeping purchase records. In 2013, the non‑cash obligation extended to all scrap metal dealers, including mobile dealers, itinerant collectors, and car dismantlers. They must now use electronic payments and obtain special licences valid only within their issuing area. Like fixed‑location yards, they must keep detailed records—including copies of sellers’ identity documents—to comply with the updated metal scraping regulations.
Why Do We Need These Changes?
Every year, 400 million tonnes of metal are recycled worldwide. Regular recycling helps reduce pollution, protecting our air and water. In the UK, metal recycling is a £5.6 billion market employing over 8,000 people. This lucrative industry once offered loopholes for tax evasion, fraud, and theft due to unclear rules. The 2012 and 2013 Acts close these loopholes and ensure transaction transparency. Companies ignoring the new regulations face severe penalties.
Members of the British Metals Recycling Association (BMRA) can find further information about non‑cash settlements, metal scraping regulations, and best practices in special membership newsletters and on the members’ website: www.recyclemetals.org. BMRA also created an information poster to spread the word that there is no cash for scrap—a crucial step towards safer, cleaner recycling.
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