As a result of the new law, car firms have had to sign agreements with two service providers, Autogreen and Cartakeback, which have set up a network of authorised disposal facilities for the ELVs designed to meet approved environmental standards.

According to Science and Innovation Minister Malcolm Wicks, the legislation will help the achieve scrap car recovery targets. The new service will allow consumers to dispose of the cars free of charge, with some being offered a fee in exchange for taking their car to an approved facility. Those who live more than 30 miles from the nearest disposal site will be eligible for free collection of the vehicle.

"As 2007 gets underway, it is the perfect time to look at ways we can all do our bit to help the environment," Wicks commented. "There is already an 85% target in place to recover scrap cars, and the free take back will help us achieve it."

But Christopher Macgowan, chief executive of the Society of Motor Manufacturers and Traders, welcomed the move, claiming it was "a further example of the industry taking professional responsibility for reducing the environmental impact of our products.” It is also hoped that passing the cost of scrapping both cars and electrical equipment onto manufacturers will provide an incentive for both sectors to invest more in designing products that are easier to recycle and dispose of.

The new laws are likely to lead to small price rises in both the car and electronics sectors.