Treasury denies 1p and 2p coins could be scrapped after none ordered by Royal Mint this year

The Treasury says it is "confident there are enough coins in the system" as it denied 1p and 2p coins would be scrapped after none were ordered from the Royal Mint this year.

Reports had suggested the coins could be reaching the end of their run amid the continuing decline in cash use.

But a Treasury spokesman denied it is the end of the road for the coins and said the lack of orders is down to there being enough already in circulation.

“We are not scrapping 1p or 2p coins,” they said. “We are confident there are enough coins in the system without the need to order more this year.”

The Royal Mint responds to demand levels by issuing coins on behalf of the Treasury, which then decides how many new coins are issued into circulation.

No 1p coins were minted in 2018 or 2019 and no 2p coins were minted in 2018, 2019, 2020 or 2022, according to figures on the Royal Mint’s website.

There has been speculation in previous years that the Treasury could be paving the way for the end of 1p and 2p coins, after comments were invited on the mix of coins in circulation.

But in 2019, government plans to safeguard the future of cash were set out and in 2023 legislation was passed as part of the Financial Services and Markets Act, to protect access to cash.

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Consumer group Which? said in May that more than 6,000 bank branches have closed since 2015, with more people turning to mobile and online banking.

But FCA research found that three million people still rely on cash, with lower-income households disproportionately likely to be excluded from digital services.

A recent survey for ATM and cash access network Link indicated that nearly half (48%) of people expect to see a cashless society in their lifetime.

A report issued by UK Finance this week said nearly two in five (39%) UK adults were living “largely cashless” lives last year.

UK Finance found that around one in three (34%) adults use mobile contactless payments every month – and it said there is scope for mobile contactless payments use to continue growing.

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