Penny-pinching move to bin coppers
MINISTERS are paving the way to scrap 1p and 2p coins, it emerged yesterday.
The proposal is contained in a new consultation on the future of money, which could also see the end of £50 notes.
Last night Downing Street refused to say whether it was committed to keeping the coins, saying: “This is a call for evidence, it is not proposing any specific changes.”
But the document says that around six in 10 1p and 2p coins are believed to be used only once before they are put into savings jars and around eight per cent are thrown away. The use of £50 notes in routine purchases is rare and people perceive them to be used mainly in criminal activities, according to the Government.
Conservative former chancellor George Osborne was reported to have been weeks from scrapping pennies in 2015, but was stopped by then prime minister David Cameron.
The Cash and Digital Payments in the New Economy consultation questions whether the current mix of eight coins and four banknotes meets modern needs, and if not, “how should it change?”.
Royal Mint needs to produce more than 500 million 1p and 2p coins each year to replace those that fall out of circulation.
The document goes on to state: “From an economic perspective, having large numbers of denominations that are not in demand, saved by the public, or in long-term storage at cash processors rather than used in circulation does not contribute to an efficient or cost-effective cash cycle.”