United Kingdom government considers phasing out 1p and 2p coins and £50 notes

General Election- Documents Stock

In documents released alongside Philip Hammond's update on the United Kingdom economy, it was revealed the Government wants to know whether the "current denominational mix meets the needs of cash users".

"One thing the Treasury were seeking views on is whether the current denominational mix of coins meets the public's needs".

Australia, Israel, Sweden, Russia and Switzerland have all dumped coins, while even countries that use the euro - such as Ireland and Belgium - have introduced rounding so people don't get 1c and 2c in their change.

In fact, 6 out of 10 of the coins are only used once before either being saved in piggy banks or (in 8% of cases) thrown in the bin. Apparently people really do throw them away, with the the document claiming a twelfth of all copper coins.

"With falling long-term demand over time, structural surpluses of some denominations of coin may be generated".

The government is also considering phasing out £50 notes due to their widespread use in money laundering.

The Treasury document states the UK's highest-value note is "believed to be rarely used for routine purchases".

Government insiders stressed the real target was always the £50 note - given fears they are mainly used in criminal activities.

But Tory MP Ian Liddell-Grainger told MailOnline: 'A lot of charities live for those pennies.

'It is the same issue we had over cheques'.

More news: UAE is the happiest country in the Arab world, report shows

Caroline Lucas, the Green co-leader and MP for Brighton Pavilion, said: "I do think it would be a great shame to lose our 2p machines on the pier - and wonder if the government hasn't just found another way to ruin peoples' fun". It is a bad mistake'.

Sarah Coles, personal finance analyst at investment management firm Hargreaves Lansdown, said: "The writing looks to be on the wall for 1ps and 2ps". The sums can add up and can establish a regular savings habit'. Now they are minted in copper-plated steel. Cash was used for 7.2 billion transactions of under £1 in 2006.

But No.10 indicated that 1p and 2p pieces were here to stay.

Previous year a bill was introduced in the US Congress which would have abolished the one cent coin.

A 2p coin weighs 3.56g - twice as much as a penny.

This means there is a high cost to keeping 1p and 2p coins in circulation relative to their face value and continuing usage, the paper adds.

The Royal Mint needs to produce more than 500 million 1p and 2p coins each year to replace those that fall out of circulation.

60 per cent of coppers are used only once before never being used again.

Beth Fox, 21, who lives in London, said she would miss the one pence and two pence coins if they were to be scrapped.

Related News:



Most liked

Jets Working On A Deal With Teddy Bridgewater
The Jets still own the No. 6 overall pick in the upcoming NFL Draft, and they could still take a quarterback with that selection. While Bridgewater, 26, is still young, he comes with plenty of risks, so the Jets are smart to have other options in place.

Cheltenham Festival: Serious challenge awaits Altior in Queen Mother Champion Chase
Racing fans from the Emerald Isle are also playing for much higher stakes than their United Kingdom counterparts. He is a really good young horse, he did what he had to today. "I'm just trying to keep up with Nicky", he joked.

Relief for Maran brothers, CBI court discharges them in BSNL exchange case
It may be recalled that Kalanidhi's Sun Pictures is producing Rajinikanth's next blockbuster directed by Karthik Subburaj. In fact, Dayanidhi Maran has not been part of any of the high profile party meetings in the recent past.

Trudeau considering more action to keep foreign dumped steel out of Canada
Ferguson also says Justin Trudeau did something that no other prime minister has ever done; he walked into the Stelco lunchroom. The prime minister says restricting Canadian steel imports would hurt the American economy.

Oklahoma to resume executions using nitrogen gas
A bill that would make the electric chair the state's default execution method is now before the House Committee on the Judiciary. A bungled procedure in 2014 left an inmate writhing on the gurney.

SP consolidates leads in Gorakhpur, Phulpur LS seats
Add to this the strength of the Congress if a grand alliance materialises, an enough reason for the BJP to feel rattled. In Gorakhpur , Samajwadi Party candidate Praveen Kumar Nishad is leading by more than 19,000 votes.

Cisco Systems (NASDAQ:CSCO) Board Authorizes Share Buyback Plan
The company had revenue of $11.89 billion during the quarter, compared to the consensus estimate of $11.82 billion. The stock of The Medicines Company (NASDAQ:MDCO) earned "Buy" rating by Cowen & Co on Wednesday, August 9.

Mississippi Braves games will feature new extra inning rules, pitch clock
Visits by coaches and position players to the pitcher's mound will be limited, with different rules for different levels. In 2018, the Double-A Missions will get 8 visits per game, with more visits allowed in extra innings .

China started the trade war
Trade Representative Robert Lighthizer, anotherfree trade critic, to be the point of contact for nations seeking tariff exemptions.

Google Assistant "Routines" now available in the US
There were a few hiccups along the path to get reminders to work on Google Home speakers, but that's a thing of the past now. All you have to do is tell Google Assistant that you want to be reminded of something when you are at a certain location.

Stephen Curry in Group Bidding to Buy Carolina Panthers
Along with rapper Sean " Diddy " Combs, Curry is understood to be among the celebrities Rubin has spoken to. Bids for the franchise are expected to start rolling in soon.

Clifford (aka Daniels) v. Trump et al
Clem on Friday played parts of the interview , where he asked Daniels to write down famous men she had slept with. Clifford into signing a false statement wherein she stated that reports of her relationship with Mr.

Numsa's interdict a bid to sabotage renewable energy, says Greepeace Africa
The oldest coal-fired power plants are fifty years old and have already exceeded their expected operational time. He said that coal is a dying industry that is constantly facing challenges and bleeding jobs.

Shane McMahon injured in attack by Kevin Owens and Sami Zayn
It is worth noting that as he's stepped down as Commissioner, McMahon is now free to be added to the match with Zayn and Owens. As it stands, Owens and Zayn are slated to face off at WrestleMania, but all indicators point to that match being altered.

The Elder Scrolls V: Skyrim VR Announced for SteamVR
If VR isn't so much your thing, however, you can play Skyrim just about everywhere, including the Nintendo Switch. Skyrim has been one of my favorite gaming experiences ever, and adding the VR touch to this classic is exciting.