You are here: Home - Household Bills - News -

1p and 2p coins given a reprieve

0
Written by:
03/05/2019
The UK Treasury is to keep 1p and 2p coins, with the Chancellor saying he wants people to have a choice over how they spend their money

The Chancellor recently consulted on whether the current mix of coins and banknotes in circulation was serving its purpose. Society is increasingly cashless, with card payments overtaking cash payments for the first time at the end of 2017.

However, the Treasury has estimated that 2.2 million people in the UK are reliant on cash and a disproportionate number of those are elderly or vulnerable. An independent review of cash published in March said eight million people still needed cash.

The 1p and 2p coins were under threat. One survey suggested that six in 10 of UK 1p and 2p coins are only used once before being put in a jar or discarded. One in 12 is thrown into a bin. The 1p coin is now worth less than the halfpenny when it was abolished in 1984.

The £50 note also appeared under threat, as the Chancellor implicated them in criminal activity. However, that has now been redesigned to make it less vulnerable to fraud.

Mike Cherry, national chairman of the Federation for Small Businesses, said keeping 1p and 2p coins in circulation was the right call: “The freedom to use pennies is still important to a lot of small firms. For many, being able to charge prices that end in 99p rather than a round pound figure can be enough to tip intrigue into a sale, particularly where lower-value items are concerned.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
London climbs in top city rankings

London has moved up to second place in Schroders Global Cities 30 index, in spite of Brexit uncertainty

Close