The time of looking after your pennies has finally come to an end, argues Jon Honeyball
The news has emerged that the 1p and 2p coins will remain in circulation after all. I can feel the collective sigh of relief amongst the twinset-and-tweeds brigade all across the nation. Those of a wholly patriotic bent can be reassured that this Great British Institution will continue “for years to come”. That our country’s children can continue to collect grubby little coins, in the sure knowledge that “if you look after the pennies, the pounds will look after themselves”.
However, this is all a huge mistake. First, there are an enormous number of these damnable things around. In 2017 alone, 241 million 1p coins were minted, along with 16.6 million 2p coins. Just for completeness, they were joined by 220 million 5p coins, 33 million 10p coins, zero 20p coins, 67 million 50p coins and a whopping 749 million £1 coins.
According to the BBC, “surveys have suggested that six in ten UK 1p and 2p coins are only used once before being put in a jar or discarded, while one in 12 is thrown into a bin”. Which goes to show just how silly the whole thing is.
Retailers like to claim that the 1p coin is important because it allows for that .99p price tag. That their customers are stupid enough to think that £6.99 is actually cheaper than £7, and that a buying choice will be made on the back of that 1p reduction. Maybe I’m just weird, but I simply don’t see it.
Personally, I carry my wallet with me and make most of my payments via card – or increasingly through contactless purchases, especially via my Apple Watch, where the convenience has been raised to almost mystical levels of loveliness. I usually carry a small number of notes with me, though – just in case. I’ve checked my wallet, and today I’m down to four currencies: UK pounds, euros, US dollars and Korean won. After all, you never know when you need some won.
Coins? I rarely carry them. They make holes in my trouser pockets, are irritatingly fiddly and are of little practical use when you’re out and about. The only time I need a few coins nowadays is to pay the 80p to park outside Marks & Spencers in Huntingdon when doing some shopping.
Surely we can rationalise 5p as the minimum denomination? I can’t remember the last time I bought something costing less than 5p. Maybe a sweet shop could sell me a Big Suck for a penny, although I suspect that the memory of such things is fading from my distant childhood.
I accept that this would introduce some challenges, mostly related to VAT. If you charge £1.05 for an item, then adding VAT takes it to £1.26. £1.80 goes to £2.16. And so forth. However, I can’t believe that many of these transactions are actually paid for in cash.
Indeed, there are many sectors of society which are much more cash-oriented than myself, and we can’t and must not disenfranchise them. But wouldn’t it just be easier for a bill to be rounded down to the nearest 5p for someone who wants and needs to pay in cash? And if there were a culture shift to companies who don’t try to pull this .99p stunt, wouldn’t everyone be better off overall? Leaping sideways for a moment, I have just heard that Julian Richer, head of Richer Sounds, the countrywide retail chain specialising in hi-fi and audio/video equipment, has decided to hand over 60% of his shareholding to the staff of the company, numbering some 500 people, some of whom have been worked for him for over 20 years. One has 40 years of service. Each of Richer Sounds’ 522 employees will receive £1,000 for every year at the firm. For myself, I have always found Richer Sounds to be a good place to shop, and I have frequented the nearest branch to me, in Cambridge, many times. It’s so refreshing and heart-warming to see a boss recognising that the company has been built not only on his hard work, but on the dedication of his staff. Others seem to prefer to splash out on a huge yacht instead. Or to plunder the company pension pot.
Why mention Mr Richer, other than his appearing to be a Jolly Good Chap? Because a trundle around his company’s website shows that most of its offerings are priced in whole pounds. Granted, there are some that go for a price with pence, but they seem to be all at .95p. It seems that Mr Richer might be of the same mindset as me regarding the dreadful little coins. Oh no, wait a second. A headphone adapter plug at £4.99? You were doing so well right up to that point, sir.
Wouldn’t it be easier for a bill to be rounded down to the nearest 5p for someone who wants to pay in cash?