Research has indicated that 6 out of 10 copper coins are only used once and end up being put into piggy banks or discarded altogether. In his 2018 Spring Statement, the chancellor appeared to suggest the end of the 1p and 2p coin after he announced that he was seeking views on the role of cash in the “new economy”. This follows what has happened to lower denomination coins in countries such as Australia, Brazil, and Sweden.
This led to a call for evidence in March 2018 called “Cash and digital payments in the new economy” issued in March 2018. The “Access to Cash Review” at the start of March 2019 also suggested that in 15 years, the 3 in 10 cash transactions in 2019 could reduce to 1 in 10 but the UK needed to ensure that people who used cash were not left behind in the move to a cashless society.
The government published its summary of responses to the 2018 call for evidence on the 3rd of May 2019 with the following key headline points:
- The government is committed to supporting digital payments and safeguarding access to cash for those who need it
- HM Treasury will set up and chair a Joint Authorities Cash Strategy Group to ensure there is comprehensive oversight of the overall UK cash infrastructure
- The government has no plans to alter the current make up of UK coins and notes in circulation
Global Payroll Association Comment
After months and months of speculation, supporting digital whilst maintaining cash, co-ordinated by the new Authorities Cash Strategy Group seems a sensible compromise.
Research has indicated that 6 out of 10 copper coins are only used once and end up being put into piggy banks or discarded altogether. In his 2018 Spring Statement, the chancellor appeared to suggest the end of the 1p and 2p coin after he announced that he was seeking views on the role of cash in the “new economy”. This follows what has happened to lower denomination coins in countries such as Australia, Brazil, and Sweden.
This led to a call for evidence in March 2018 called “Cash and digital payments in the new economy” issued in March 2018. The “Access to Cash Review” at the start of March 2019 also suggested that in 15 years, the 3 in 10 cash transactions in 2019 could reduce to 1 in 10 but the UK needed to ensure that people who used cash were not left behind in the move to a cashless society.
The government published its summary of responses to the 2018 call for evidence on the 3rd of May 2019 with the following key headline points:
- The government is committed to supporting digital payments and safeguarding access to cash for those who need it
- HM Treasury will set up and chair a Joint Authorities Cash Strategy Group to ensure there is comprehensive oversight of the overall UK cash infrastructure
- The government has no plans to alter the current make up of UK coins and notes in circulation
Global Payroll Association Comment
After months and months of speculation, supporting digital whilst maintaining cash, co-ordinated by the new Authorities Cash Strategy Group seems a sensible compromise.