A couple of days ago my scrotum started itching. It's usually ok if you leave it but then if you touch it once then you can't stop.
Over time it has become very red, flakey and now shiny where too much skin has come off.
Along side this (not entirely sure it's the same thing but too much of a coinsidense) is that a small area on the my penis head looks grazed and follows down to a small patch of flakey skin on my foreskin.
Sounds like you have jock itch, which is a fungal infection of the skin. Good news is that it can be easily treated with anti-fungal sprays or creams that you can buy at a pharmacy. It is a really common condition so there is nothing to worry about. Try treating it yourself and if it doesn't improve see a doctor.
I agree with honeycut on what is happening, but I would recommend monistat, or anything over the counter for female yeast, for both the scrotum and the penis. If you have a partner, they should treat their genitals with it as well, or you could be passing the yeast infection back and forth.