1p and 2p coins to stay in circulation
Pennies and 2p coins are to remain in circulation after the Government announced there will be no changes to the current make up of coins and notes for years to come.
The announcement comes as the Treasury publishes its findings from a call for evidence – launched last year – on the use of cash and digital payments. The findings show that while the use of cash has declined in recent years, it remains a dominant form of paying for goods for many people across the country.
The Government says that around 2.2 million people in the UK are still reliant on cash and has published an action plan to make sure cash continues to be available for those who need it.
What is the Government doing?
The Government says it will:
- Support the Bank of England's work to ensure cash is being distributed as needed across the country.
- Develop a new coin checking and validation system to remove counterfeits from circulation and stop them from ending up in people's pockets.
- Reiterate that there are no plans to alter the make up of coins and notes, with all denominations – from the penny to the £50 note – staying in circulation.
- Establish a new joint authorities cash strategy group (JACS), which will be chaired by the Treasury, and bring together regulators and the Bank of England to oversee the UK's cash system.
- Continue to support new digital methods of payment, while safeguarding access to cash for those who need it.