Two UK coins could disappear forever under major new plans
The Treasury has ordered a halt to the production of new coins as it considers a major shakeup of the country's copper.
The Treasury has issued no orders for new coins for the first time as they mull a major change to the UK’s currency.
It’s been revealed that HM Treasury has put a pause on Royal Mint production, as officials consider scrapping two of the UK’s coins.
The move throws the future of 1p and 2p coins in doubt for the first time since 2019.
Five years ago the then-Chancellor Philip Hammond was consulted on whether the UK should scrap the coins, which are becoming increasingly redundant due to inflation.
However the Tory chancellor pressed ahead with continued circulation and production of 1p and 2p coins, saying people should “have a choice” over how they spend their money.
While cash use has been falling dramatically over the last decades, Mr Hammond insisted the low-value coppers still be manufactured.
Surveys have suggested that six in 10 of the UK’s 1p and 2p coins are used only once before being left in a jar or discarded.
One in 12 are thrown into the bin and scrapped altogether.
Inflation has also meant that the 1p coin is now worth less than the halfpenny was when it was abolished in 1984.
Today, the Evening Standard reveals that the future of the two coins are once again in doubt, as official yet again propose scrapping them and removing them from circulation.
The proposals, not yet finalised, would also include an information campaign to encourage members of the public to hand in their 1p and 2ps to be melted down.
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A spokesman for the Treasury has said: “The Royal Mint produces coins according to expected demand, existing buffer stocks, and orders placed by industry”.
“We are confident there are enough coins in the system, with estimates of approximately 27 billion in circulation in the UK. The Treasury has no current plans to change the mix of UK coins.”
Meanwhile a Tory source told the Sun that the coins will not disappear and insisted the failure to order any more is due to an "over-supply in circulation".
The move would be the biggest shake up to Britain’s coinage since decimalisation in 1971 - 53 years ago.
1p and 2ps were also switched from copper to bronze in 1992 due to the increasing price of metal in world markets.
In 1971 the UK finally caught up with the rest of the world in switching from pounds, shillings and pence to a base-10 system.
The move came about after a 1960s parliamentary committee for modernising the currency made the recommendation.
Ironically the old shilling has beaten inflation since 1971, and would today have more buying power than the 5 pence coin.
