Cash access for Britons in doubt as Treasury orders no new 1p and 2p to be minted
Cash access in the UK is in doubt after a recent Treasury development
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The Treasury is reportedly set to scrap 1p and 2p coins as cash transactions across the UK plummet to new lows.
No new orders from the Treasury to the Royal Mint have been placed this year as the Government floats getting rid of 1p and 2p currency all together, according to The Standard.
Officials are reportedly drawing up new proposals for the future of coins which appear to include removing them from circulation.
Other proposals being suggested include an information campaign to urge Britons to hand over their coins to be melted down.
However, no proposals have been finalised with recommendations set to be put forward to Government ministers.
This comes amid widespread access to cash services amid the rise in contactless payments.
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Reports suggest that 1p and 2p coins could be discontinued
ROYAL MINTA HM Treasury spokesperson told the Standard: “The Royal Mint produces coins according to expected demand, existing buffer stocks, and orders placed by industry.
"We are confident there are enough coins in the system, with estimates of approximately 27 billion in circulation in the UK.
"The Treasury has no current plans to change the mix of UK coins."
According to the Government department, it will keep the denominational mix of the country's coinage under review.
There have been no new 2p coins produced by the Royal Mint since 2021, according to the latest figures from the UK's official coin maker.
Notably, none were manufactured between 2018 and 2020 as Britons continue to move away from physical cash.
In a statement, a Royal Mint spokesperson said: "[Our] core purpose is to make UK coins, and we continue to work closely with the Treasury to meet demand from UK cash centres.”
This comes after the Financial Conduct Authority (FCA) laid out new plans to protect peoples' access to services earlier this week.
If 1p and 2p coins were to be scrapped entirely, this would represent the most drastic change to Britain's currency since decimalisation back in 1971.
The last time a coin was abolished was when the half-penny was stopped being minted in 1984.
LATEST DEVELOPMENTS:
Legislation was passed as part of the Financial Services and Markets Act, to protect access to cashGETTYIn 2023, the number of cash payments in the UK dropped to 6.4 billion, a seven per cent fall from the year before.
This is a difference of more than two-thirds compared to the number of cash payments made 10 years ago, according to UK Finance figures.
Debit card transactions have risen to just over 25 billion which makes up more than half of all payments.
GB News has contacted both the Treasury and the Royal Mint for comment.
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