UK Scrap Metal Payment Rules – Cash Ban, ID Requirements, and the 2013 Act

The Scrap Metal Dealers Act 2013 significantly changed how scrap metal transactions are conducted in the UK. The legislation was introduced to combat metal theft, which had reached epidemic levels in the years before.

The Cash Ban

The most significant change is an absolute prohibition on cash payments for scrap metal. Scrap yards must pay by bank transfer or cheque. There are no exceptions — not for small amounts, not for existing customers. Any yard that offers cash is operating in breach of the law.

This applies to all registered scrap metal dealers in England, Wales, and Scotland. If you are offered cash at a yard, you should decline and report the dealer to your local council.

Photo ID Requirement

Every seller must provide verifiable personal details before a transaction can proceed. Acceptable forms of ID include a valid UK driving licence or a valid passport. The yard must record your name, address, and the description and weight of the material sold, and retain these records for three years.

Licensing Requirements for Yards

Scrap metal dealers must hold a licence from their local council. There are two types:

1. **Site licence**: Covers a fixed premises (a traditional scrap yard)

2. **Collector's licence**: Covers mobile collectors who collect from homes and premises

Unlicensed buying and selling is a criminal offence.

What This Means for Sellers

1. Bring photo ID every time you visit a scrap yard

2. Provide your bank account details for payment (sort code and account number)

3. Expect payment within a few working days

4. Keep your receipt — it documents the transaction in case of any dispute

Northern Ireland

The Scrap Metal Dealers Act 2013 does not extend to Northern Ireland, which has its own licensing framework. However, responsible yards in Northern Ireland follow equivalent standards.