Scrap metal dealer licensing

The Scrap Metal Dealers Act 2013 came into force on 1 October 2013.

The Act repeals the Scrap Metal Dealers Act 1964 and consolidates scrap metal dealers and motor salvage operators under one licensing regime. Local Authorities continue to act as the main regulator but the Act gives Licensing Authorities more powers, including the power to refuse a license and powers to revoke licenses if the dealer is considered unsuitable. Both the Local Authority and the Police have been given powers to enter and inspect premises.

The Act defines a scrap metal dealer as a person who is for the time being carrying on a business as a scrap metal dealer, whether or not authorised by a licence.

It further states that scrap metal includes:

• any old, waste or discarded metal or metallic material, and
• any product, article or assembly which is made from or contains metal and is broken, worn out or regarded by its last holder as having reached the end of its useful life

The following is not considered to be scrap metal:

• gold
• silver
• any alloy of which 2% or more by weight is attributable to gold or silver

Any person who carries on a business that involves the recovery of salvageable parts from motor vehicles and the subsequent sale or disposal for scrap of the remainder of the vehicle, or the purchase of 'written off' vehicles for repair or resale, or other related activities also needs to apply for a Scrap Metal Dealer Licence.

Before seeking a licence you should first have obtained suitable premises and planning permission - contact our Planning Department who will be able to advise.

You may also need to hold an Environment Agency Waste Management Licence - contact the Environment Agency.

Guidance on the Act

The Home Office has provided some useful guidance to assist applicants and Licensing Authorities with the implementation of the new Act. Visit the Scrap Metal Dealer pages on GOV.UK.

Our role

Scrap metal dealers must get a licence from us in order to carry on business as a scrap metal dealer. Failing to have a licence while operating as a scrap metal dealer is an offence. 

Licences cover three years from the date of issue.

Fit and Proper test

As the Licensing Authority, we have to be satisfied that an applicant is a suitable person to carry on business as a scrap metal dealer. In considering this, we consult with:

• any other Local Authority (if an application has been made or licence issued to the same applicant)
• the Environment Agency
• the Police

We do this in order to assess the following criteria:

• whether the applicant or any site manager has been convicted of any relevant offence
• whether the applicant or any site manager has been the subject of any relevant enforcement action
• any previous refusal for issue of or renewal of a scrap metal license
• any previous refusal for an environment permit ore registration
• any previous revocation of a scrap metal licence
• whether the applicant has demonstrated that there will be adequate procedures to comply with the Act

All of the above will apply to any director or any secretary of a company if the applicant is not an individual.

The Home Office has issued a guide to Licensing Authorities to assist with determining the suitability of applicants. See the Determining suitability of applicants guidance on GOV.UK.

Conditions attached to a licence

Local authorities, when issuing a licence, may impose prescribed conditions if the licensee or site manager has been convicted of a relevant offence. The two conditions that can be imposed by Local Authorities on a licence, are:

• that the dealer must not receive scrap metal except between 9am and 5pm on any day
• that all scrap metal received must be kept in the form in which it is received for a specified period, not exceeding 72 hours, beginning with the time when it is received

Varying a licence

We can vary a licence, imposing the conditions stipulated above, if the licensee or a site manager is convicted of a relevant offence.

Revoking a licence

We can revoke a licence on particular grounds, including where we are no longer satisfied that the licensee is a suitable person to carry on the business as a scrap metal dealer.

Your responsibilities

A licensee must display a copy of their licence. For site operators, this must be in a prominent place in an area accessible to the public.

For mobile collectors, it must be in a manner which enables the licence to be easily read by a person outside the vehicle. A criminal offence is committed by any scrap metal dealer who fails to fulfil these requirements.

There is a requirement on scrap metal dealers, site managers and employees who have been delegated the responsibility to do so, to verify the identity of the person they are receiving metal from and the person’s address. This verification must be done by reference to data, documents or other information obtained from a reliable or independent source, such as the Identity and Passport Service, the Driver and Vehicle Licensing Agency, a bank or utility company etc. The Secretary of State will prescribe in regulations the data or documents which are sufficient, or not sufficient as the case may be, for verifying identity.

It is an offence not to obtain and verify the seller's identity. The offence will apply to the scrap metal dealer, the site manager and any person, who under arrangements made by either the scrap metal dealer or the site manager, has responsibility for fulfilling this requirement on behalf of the business.

Legislation sets out the record-keeping requirements in respect of any scrap metal received by a scrap metal dealer in the course of their business. Information that is required to be recorded includes

• the type of metal being purchased
• the time/date of the transaction
• personal information on the seller
• who is acting on behalf of the dealer
• proof of the non-cash transaction

Failure to comply with the requirements of this section is an offence attracting a penalty up to level 5 on the standard scale.

The payment of cash for metals is prohibited.

Types of Licence

There are two types of licence, one for a site and the other for a mobile collector (for those carrying on business otherwise than at a site).

Site Licence

A site licence will be issued by the Local Authority in whose area a scrap metal site is situated and will require all of the sites at which the licensee carries on the business as a scrap metal dealer within the Local Authority area to be identified and a site manager to be named for each site. In doing so, they will be permitted to operate from those sites as a scrap metal dealer, including transporting scrap metal to and from those sites from any Local Authority area.

Mobile Collector's Licence

A mobile collector's licence will authorise the licensee to operate as a mobile collector in the area of the issuing Local Authority, permitting them to collect any scrap metal as appropriate. This includes commercial as well as domestic scrap metal.

The licence does not permit the collector to collect from any other Local Authority area; a separate licence would need to be obtained from each Local Authority in whose area the individual wished to collect in. A licence also does not authorise the licensee to carry on a business at a site within any area - should a collector wish to use a fixed site, they would need to obtain a site licence from the relevant Local Authority. There is no restriction as to the location where the collector may transport and sell their metals.

How to apply

You can submit an application for a Scrap Metal Dealer Licence (both site and collectors licence) online on GOV.UK:

Apply for a Scrap Metal Dealer Licence online

Alternatively you can send the completed application form and documents via email to licensing@oxford.gov.uk. Please include a contact telephone number in order for an Officer to make contact for the payment of the application fee by credit/debit card.

Download the Scrap Metal Dealers application form.

Licence fees

We are allowed to set fees based on recovery of our costs. Below are the current fees (revised 1 April 2024):

• New Site Licence: £1382.00
• Renewal Site Licence: £1382.00
• Variation Site Licence: £340.00
• New Mobile Collector Licence: £686.00
• Renewal Mobile Collector Licence: £686.00
• Variation Mobile Collector Licence: £340.00

The fee does not include any charges required for a Basic Disclosure or any other requirements that an applicant would obtain as part of the application process at their own cost.