No new 1p and 2p coins will be ordered by the Treasury from The Royal Mint this year, pointing to a decline in cash use. A review revealed that there are already enough of these coins in circulation. UK Finance reports that 39% of adults are largely cashless, though the number of cash-only spenders rose for the first time in four years, reflecting the use of cash to manage tight budgets during the cost-of-living crisis.
An estimated 27 billion coins circulate in the UK. The Royal Mint, banks, and the Post Office regularly assess the coin supply. The Treasury determines how many coins are needed and orders new stocks from the Royal Mint, which can last decades. Previous years have been without 2p and 20p coin production. In 2018, no 1p or 2p coins were made, prompting a consultation on the future of cash. The Treasury later confirmed these coins would remain in use. New designs for £1, 5p, and 50p coins featuring national flora and fauna were recently produced.
Meanwhile, UK Finance's data shows 1.5 million adults used mainly cash in 2023, the first rise since 2019. Despite this, most young people prefer using smartphones or watches for payments.
Additionally, new rules by the Financial Conduct Authority will require banks to ensure adequate cash access if branches close.
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