Rogue traders who buy and sell scrap metal for cash face a £5,000 fine under new laws designed to stamp out metal theft.

All scrap metal dealers will need to apply to their local council for a licence to operate under new rules which came into effect on the 1st October 2013

The Scrap Metal Dealers Act 2013, which clamps down on rogue traders, will also give local authorities and police new powers to inspect premises where they suspect illegal activity.

Metal Theft
Magistrates will be able to issue fines of up to £5,000 to scrap metal dealers who trade in cash. As well as having the power to issue licences, councils will be able to refuse or revoke licences if a dealer is deemed unsuitable.

Crime Prevention Minister Jeremy Browne said:

“Metal theft costs the UK economy around £220 million a year and it has a huge impact on our communities - from disrupted rail services to desecrated war memorials and damaged church roofs.

“Our changes, including increasing financial penalties and banning cash payments, have already helped slash metal theft across the UK.

“This new legislation will help tighten the net around rogue dealers who flout the rules and wilfully purchase stolen metal, while reforming the system to support legitimate businesses.”

The new scrap metal laws will also mean:

• all scrap metal dealers must verify the name and address of the seller at the point of sale, which is recorded and retained by the dealer
• the cashless offence will apply to all scrap metal dealers including ‘mobile collectors’ who collect door to door
• there will be a single national publicly available register of all scrap metal dealers

Scrap metal Deputy Chief Constable Paul Crowther, from British Transport Police (BTP), said:

“This marks a very significant milestone in the fight against metal thieves

“The Act demands a greater level of awareness and responsibility from traders, ensuring they verify who they are doing business with, but it also protects law abiding recyclers from unscrupulous traders.

“It is vital that scrap metal traders are aware of the changes, including the new licensing regulations.

“Metal thieves cause misery for thousands of people, whether targeting the rail network, power cables or telecommunications and today’s changes signal the introduction of a more robust licensing scheme to be monitored by local authorities.”

Know the law

• All scrap metal dealers can apply for a licence from 1 October.
• If a scrap metal dealer who is registered under the Scrap Metal Dealers Act 1964 or Vehicles (Crime) Act 2001 applies on or before 15 October they will be deemed to have a licence until the local authority issues a licence decision.
• Local authorities will complete checks to assess applicants’ suitability to hold a licence between 15 October and 1 December.
• If a registered scrap metal dealer does not submit an application on or by 15 October their deemed licence will lapse on 16 October. A deemed temporary licence which has lapsed does not give rise to a right to appeal. The dealer must submit an application and wait for a licence to be issued before they can trade legally.
• A local authority can impose conditions on a deemed temporary licence pending an appeal for the refusal of a licence.
• Scrap metal dealers who are not registered under the Scrap Metal Dealers Act 1964 or the Vehicles (Crime) Act 2001 can apply for a scrap metal dealer’s licence from today 1 October but must wait for a licence to be issued before they can trade legally.
• The offence of buying scrap metal for cash comes into force on 1 October.
• Local authority officers and police officers will have the right to enter and inspect from 1 October.
• The majority of the other enforcement provisions within the Act will come into force on 1 December.