1p and 2p Coins are Here to Stay

By David Bash on at

After Philip Hammond floated a proposal in the 2018 Spring Statement that would scrap 1p and 2p coins for being too hard to store, the Treasury faced backlash from groups claiming that millions of people in the UK still relied on cash as their main spending method.

Now, following a joint campaign that pulled together small businesses, charities and groups representing older and vulnerable people, the government has committed indefinitely to not changing the types of money in use.

Hammond said:

"Technology has transformed banking for millions of people, making it easier and quicker to carry out financial transactions and pay for services. But it's also clear that many people still rely on cash, and I want the public to have choice over how they spend their money."

According to the Access to Cash Review, cash is being used less and less each year. The review also stated that the current rate of decline would see cash use end by 2026.

But some people have yet to make the transition to digital payments.

Natalie Ceeney, the chair of the Access to Cash review, said

"Cash use is falling rapidly, but digital payments don't yet work for everyone. If we sleepwalk into a cashless society, millions of people will be left behind."

No need to worry for now though. The 1p and 2p coins will remain in circulation, jingling around at the bottom of your sofa and breaking your washing machine. Even the cheeky £50 note is allowed to stay, money laundering be damned.

Photo by Siora Photography on Unsplash