No new 1p and 2p coins to be made this year – but Treasury denies plans to scrap them

The Treasury has made no orders to the Royal Mint for new 1p and 2p coins this year - but have denied the copper coins are set to be phased out.

Multiple reports had suggested the coins could be reaching the end of their life and that Treasury officials were considering a number of options, including getting rid of the coins, as the use of cash declines across society.

A HM Treasury spokesperson denied that this was the end of the road for the smallest denominations and the lack of orders was down to having enough coins 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 Treasury requests the Royal Mint to produce coins, which can have lifespans lasting decades, to meet the needs of the economy.

There were several years in the early 1970s and early 1980s when no 2ps were produced with neither 1p or 2p coins produced in 2018.

In the same year, then chancellor Philip Hammond labelled the smallest coins “obsolete” but pledged to keep them and protect cash a year later.

The last coin to be scrapped was the half-penny which stopped being minted in 1984.

Cash payments have fallen significantly in recent years as more people have embraced paying by card or using apps on their phone. Some businesses in major cities have stopped taking cash payments entirely.

The process of moving away from cash accelerated rapidly during the Covid pandemic as consumers turned to online shopping due to restrictions on movement and the closure of High Street stores.

According to data from UK Finance, the number of cash paymnets made in the UK fell to 6.4 billion in 2023, down 7 per cent compared to the previous year.

Debit card transactions rose to just under 25 billion, accounting for more than half of all payments.

There are believed to be approximately 27 billion coins in circulation in the UK.