Isle of Man considers removing 1p, 2p and 5p coins from currency

1p, 2p and 5p coins may be removed from Manx currency, if supported by islanders. Credit: Isle of Man Government

Coins including 1p, 2p and 5p could be removed from the Isle of Man currency in a proposal to round all cash transactions.

The rounding system, which would only take place on a total bill and not the cost of individual items, would see all totals rounded to the nearest 0 or 10p instead.

It would not apply to any card or digital transactions.

The government is now asking those who live on the Island whether they agree with axing the coins by opening a public consultation.

No Manx 1p and 2p coins have been minted since 2016 as minting costs more than the coins themselves.

The government say inflation has caused the purchasing power of 1p, 2p and 5p coins to diminish over time, leading to a fall in use during the pandemic.

The government has launched a public consultation on the proposed changes to Manx currency. Credit: ITV Granada Reports

How would the rounding system work?

Where a total bill is being paid in cash, and the number of pence to be paid does not end in 0 or 10, the amount of the final bill would be rounded to the nearest 0p or 10p.

For example:

  • £9.21, £9.22, £9.23 or £9.24 would round down to £9.20

  • £9.25, £9.26, £9.27, £9.28 or £9.29 would round up to £9.30

It would not apply to any card or digital transactions. Anyone who wanted to pay via an online payment system or by debit, credit or store card, would still be charged the total amount regardless of the number at the end.

Treasury Minister Dr Alex Allinson MHK said: "Any change to the way society uses cash must be carefully considered as its presence within our culture has been embedded over many centuries.

"There is, however, a need to properly examine how and why the use of coins has declined and what we should do to remove those deemed no longer useful.

"The consultation process will enable the Treasury to gather views and feedback from all corners of our community, which will help inform possible next steps.

"While decisions are yet to be made, it is important to note the experience of many countries which have successfully navigated this process, including Australia, Belgium, Brazil, Canada and our neighbours in the Republic of Ireland."

The consultation is due to run for seven weeks and conclude on Wednesday 28 June.

Those wishing to take part in the consultation can do so here.

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