No new 2p or £2 coins are to be produced for at least a decade, The Royal Mint has confirmed, following a slump in cash use as a result of the COVID-19 pandemic.
The Royal Mint, which has been producing coins in the UK for more than 1,100 years, suggested a sharp decline in demand had left the coin maker with a mountain of stock.
The maker has stocks that are 26 times over its target for £2 coins, and eight times over its target for 2p coins.
In June, UK Finance revealed that card and contactless payments had accounted for over half (51%) of all payments during 2019, the first time that card payments had seen a majority. The same report showed the volume of cash payments had continued to decline and that in 2019, the total of payments with cash had fallen by 15%.
A report today from the National Audit Office (NAO) has revealed that 10 years ago, cash was used in six out of 10 transactions but by 2019, it was used in less than three in 10 transactions.
The NAO also stated that the outbreak of COVID-19 “may have accelerated this trend”, with data suggesting that demand for notes and coins declined by 71% between early March and the middle of April during lockdown. The NAO added that demand has since been recovering.
Commenting on The Royal Mint’s announcement, Starling Bank CEO and founder, Anne Boden, said: “As the crisis has sped up the shift to digital and the decline in cash, there’s huge scope to do more to share the benefits of digital technology more widely across society.”
Latest News
-
ISA reform rumours return as Govt sets Budget date
-
Majority of consumers prefer human financial advice compared to AI
-
Net mortgage approvals creep up in July – BoE
-
House price growth softens in August – Nationwide
-
Govt introduces new laws for failing to prevent fraud
-
Later life lending should be part of standard mortgage qualifications – Key
The new episode of The Mortgage Insider podcast, out now
Regional housing markets now matter more than ever. While London and the Southeast still tend to dominate the headlines from a house price and affordability perspective, much of the growth in rental yields and buyer demand is coming from other parts of the UK.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance.
Air and the role of later-life lending
Content editor at MoneyAge, Dan McGrath, spoke to the chief executive officer at Air, Will Hale, about the later-life lending industry, the importance of tailored advice and how technology and obligations have shaped the sector.
Helping the credit challenged get mortgage ready
A rising number of borrowers are finding it harder to access mortgages due to being credit challenged - whether that’s from historic debts, a county court judgment, or having little to no credit history.
In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.
In the latest episode of the Mortgage Insider podcast, Phil Spencer is joined by Eloise Hall, Head of National Accounts at Kensington Mortgages, and Alastair Douglas, CEO of TotallyMoney.
The future of the bridging industry and the Autumn Budget
MoneyAge content editor, Dan McGrath, is joined by head of marketing at Black & White Bridging, Matt Horton, to discuss the bridging industry, the impact of the Autumn Budget and what the future holds for the sector.
© 2019 Perspective Publishing Privacy & Cookies
Recent Stories