Treasury Halts Minting of 1p and 2p Coins, Future in Question

In a significant move, Treasury officials have announced that no new 1p and 2p coins will be minted for general circulation, raising concerns about the future of these denominations. The government has not placed an annual order with the Royal Mint and does not anticipate any new orders in the coming years. A spokesperson for HM Treasury stated that the Royal Mint produces coins based on expected demand and existing stocks, assuring that approximately 27 billion coins are currently in circulation in the UK. The Royal Mint has not minted new 2p coins since 2021, and there were no new coins produced between 2018 and 2020. This marks a notable shift, as the last coin to be removed from circulation in the UK was the half-penny in 1984. Discussions regarding the future of the 1p and 2p coins are expected to take place with ministers, as the government evaluates the necessity of these denominations in a changing economic landscape. In related news, the Financial Conduct Authority (FCA) is set to implement new regulations aimed at ensuring access to cash as banks and building societies continue to close branches. Effective from September 18, these rules are designed to protect the interests of the 3 million people who still rely on cash, particularly lower-income households that may be excluded from digital services. Sheldon Mills, the FCA’s executive director, emphasized the importance of maintaining reasonable access to cash withdrawal and deposit services, especially for small businesses that depend on cash transactions.