Scrap Metal Law in the UK: What Every Seller Needs to Know
The Scrap Metal Dealers Act 2013 fundamentally changed how UK scrap yards operate. If you plan to sell scrap metal, you need to understand these rules before you go.
The Scrap Metal Dealers Act 2013 fundamentally changed how UK scrap yards operate. Introduced to tackle organised metal theft — which was costing the UK over £700 million a year — the Act created a licensing regime and banned cash payments across the industry.
Cash Payments Are Illegal
Under the 2013 Act, it is illegal for any licensed scrap metal dealer to pay cash for scrap metal. Payment must be made by bank transfer or cheque. No exceptions.
If a yard offers you cash — even a small amount — they are operating illegally. Always insist on bank transfer.
ID Is Always Required
Every seller must present valid photo ID before a yard can purchase your metal. Acceptable ID includes: driving licence, passport, or government-issued photo ID card.
Licensed Dealers Only
It is an offence for anyone to operate as a scrap metal dealer without a licence. Licences are issued by local councils and must be displayed at the yard.
Northern Ireland
The Scrap Metal Dealers Act 2013 applies to England, Scotland, and Wales. Northern Ireland operates under separate legislation but equivalent anti-money-laundering rules apply.