Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

Guidance on scrap cash ban published

The Government has published guidance for scrap dealers on the ban on cash five weeks before it comes into force.

As first reported by MRW last month, new laws banning cash payments for scrap metal take effect on 3 December as part of a Government crackdown on metal theft.

The new Home Office guidance describes forms of payment which are allowed under the new law including crossed cheques, direct debit, BACS payments, credit transfers and certain electronic money products.

As well as cash the law, introduced under the Legal Aid, Sentencing and Punishment of Offenders Act 2012, also prohibits payments by postal order, gift voucher, mobile phone credit and foreign currency.

New, stricter requirements to record payments and seller details are also described in the advice published online.

The Government is also backing a bill being piloted through the Commons by Richard Ottaway MP to replace the current Scrap Metal Dealers’ Bill. If successful the law would introduce council-run compulsory licences a national register for scrap dealers.

The bill gets its third reading in the Commons on 9 November.

Readers' comments (5)

  • The cash ban will be the funeral of the scrap trade,due to Legislators taking a heavy handed attitude towards the small Legitimate Scrap Business,and will encourage criminality amongst the Itinerant collectors who can pay cash to buy scrap. The Police are going to be busy. May the scrap trade rest in peace.

    Unsuitable or offensive? Report this comment

  • We are a small legitimate scrap business with 12 employees, but we have over 100 customers, some very big. We havnt paid cash for over a year now and are perfectly happy with the situation, infact its a breath of fresh air as far as we are concerned.

    Unsuitable or offensive? Report this comment

  • When the parishioners of St Mary’s saw the state of their 13th century church after thieves tore lead worth £50,000 from the roof they tried to be forgiving.

    But it seems even the most lenient-minded couldn’t match the mercy shown by magistrates – who let the culprits off with a 12-month community order.
    what is outdated is punishment not the 1964 scrap dealers metal act

    Unsuitable or offensive? Report this comment

  • Unfortunatly we as traders haven't done enough to regulate its self and allowed other agencies do it for us,Auctions still have the ability to pay cash The cash for cheque facilities,Jewllers,and other business.wrongly or rightly its the last facility where we was able to generate a bit of cash from your scrap wihout a tax element and the ability to have a couple of pound in your pocket it is a shame that we as a country have allowed the destruction of so many facilities ie churches rail and the genral public for those few to cash in and off course the traders which never asked questions,Please dont be put of taking your metal to a dealer the countries manufacturing survive on it and you still can benifit.

    Unsuitable or offensive? Report this comment

  • Hope some one can clarify a few points for me ,I [for the last 20 years] have had an advert running in local papers "scrap cars ,mot failures ,all vehicles wanted any condition etc" ,you know the type basically I am the middle man between the owner of an unwanted car and the scrap yard ,now some are worth fixing and re MOTing some go for export some to banger drivers but most to the local ELV reg scrap yard that pay me via account direct to my bank all good so far .Not all of the cars I buy are going to be scrapped but at the point of purchase I don't know what I am going to do with the vehicle until I have a good look round it ,.My question is this ,can I still pay for the cars on peoples doorstep via cash or will it have to be a cheque etc as it may be scrapped or does it not apply to me as effectively I am simply buying a vehicle

    Unsuitable or offensive? Report this comment

  • We THINK you are OK. But - at the point you try to sell the car as scrap, then we assume you cannot do so for scrap. The Ottaway Bill, if it becomes law, covers end-of-life vehicles so there could be implications for you. Anyone else know?

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.