Cash payments for scrap metal banned in England and Wales

From this week, police will also have new powers to enter metal yards where they suspect illegal trading is taking place. Fines for illegal trading have been increased to £5,000, five times higher than the previous maximum.

The Government has previously allocated £5 million to a dedicated metal theft taskforce, and has promised strengthened law enforcement activity in support of the new regime.

Recovery law expert Andrew Masterson of Pinsent Masons, the law firm behind Out-Law.com, said that the bam was a "useful incremental measure", but pointed out that other opportunities for monetising stolen scrap metal would remain for determined thieves.

"The ban should make liquidating stolen scrap more difficult for thieves, especially at the less organised end of the spectrum," he said. "Given the small size of many thefts of copper from railways it may be of greatest significance to the rail sector. However, the opportunities for monetising stolen scrap through export and dishonest scrap yards will remain."

"The message for the business sector is to remain vigilant. A great deal can be achieved through self-help. Ensuring effective systems to control access to, and custody of, metallic assets is as important now as it ever was. The deterrent effect from the change in the law will only go so far," he said.

He added that although plans to introduce similar measures were already underway in Scotland, there was the potential for cross-border trade in the interim.

Although a high percentage of scrap metal theft takes place from within the manufacturing and metal recycling industries, theft of cables from the railways for resale has become a growing problem in recent years. According to Government figures, trade in illegal metals costs the UK at least £200 million a year.

"Metal theft affects everyone and the impact on our communities is immense," said Jeremy Browne, Minister for Crime Prevention. "From loss of power to homes and disruption in rail services to desecrated war memorials, all our lives are blighted by this national problem. These measures are designed to reform the industry to support legitimate dealers and tighten the net around those who flout the rules."

A new Scrap Metal Dealers Bill, tabled by Richard Ottaway MP, proposes licensing for scrap metal dealers. The Bill is expected to be approved by Parliament in the New Year, according to a Government announcement.