Pound coin chaos as shops defy deadline

Small traders object to cut-off with 500million old coins left in circulation

THOUSANDS of shops and businesses will ignore the Royal Mint’s deadline to stop accepting old £1 coins, despite warnings that it could create chaos.

A trade association representing 170,000 small shops has advised its members to continue taking the round £1 coins, which cease to be legal tender on Sunday, to provide a “useful community service” to customers.

Poundland, the discount store, has also said it will continue to let customers use the old coins, of which 500million remain in circulation, to pay for items beyond the cut-off point. Bosses described the move as a “no-brainer”.

The Royal Mint and the Treasury are understood to have told businesses that they want a “clean break” from the round pound to avoid potential chaos being created by some shops continuing to accept them as payment.

Officials are said to be worried that a “messy” transitional phase would lead to customers getting confused about which coins they could use, as well as creating hassle for banks which would have to separate old and new coins long after the deadline had passed.

Rules coming into force on Oct 15 will prevent shops handing out old £1 coins as change and will give shops the right to refuse them as payment.

However, there is no rule preventing shops – which are able to bank old £1 coins long after this date – accepting the coins beyond the end of this week.

The 12-sided £1 coin came into circulation in March as part of the Mint’s efforts to cut back on counterfeits.

A spokesman for the Federation of Small Businesses said: “Shopkeepers will be aware that the Royal Mint has this deadline but at the same time they will not want to let their loyal customers down by saying they cannot pay with a round pound if they do not have any other change. The changeover period has been fairly short. It would help if small firms knew they were allowed a short transition period to collect the old coins if they wish to and are willing to bank them, but not give out to customers. This would provide a useful community service, allowing customers a few weeks to get rid of the final few pound coins in circulation.”

A spokesman for the Association of Convenience Stores, which represents corner shops, said the organisation had been told by the Treasury and the Mint that they wanted all shops to stop accepting the old coins on the same day. The spokesman said: “They want a smooth transition which does not involve shops giving banks mixed bags of coins.”

Barry Williams, managing director of Poundland, said: “Providing an extra convenience for shoppers to lighten their pockets while doing the weekly shop rather than making a separate trip to the bank or post office will come as good news.”

It also emerged that despite having more than six months to adapt to the new £1 coin, some of the country’s biggest supermarkets and rail companies will not accept it in time for Sunday.

Yesterday Sainsbury’s and Tesco admitted that they still had not modified all their trolleys to accept the 12-sided coin. In addition, railway companies – including Govia Thameslink Railway, which operates Southern, Great Northern, Gatwick Express and Thameslink – said some of their ticket machines would not be ready in time.

A Treasury spokesman said: “We will have received more than 1.2 billion round pound coins by the time they cease being legal tender. We have worked with industry for over three years to ensure a smooth transition to the new more secure £1 coin.”