No new 2p or £2 coins to be made for a decade
The Royal Mint has no plans to make any new 2p or £2 coins for the next decade, as cash usage in the UK continues to decline.
Only 30 per cent of transactions made in the UK last year used cash, compared to 60 per cent in 2009.
However cash is still relied upon by vulnerable communities for many transactions, prompting authorities to consider how to transition to a more sustainable approach.
To drive efficiencies, the Mint has reduced headcount by 22 per cent on coin-making work within its currency division and scrapped two of its six plating lines.
A report on the future of cash by the National Audit Office (NAO) today showed the outbreak of coronavirus may have accelerated the cashless trend, with market demand for notes and coins dropping more than 70 per cent between early March and mid-April.
Demand has since begun to recover as shoppers head back to the high street, with notes coming into a particular focus. The number of notes in circulation reaching a record high in 2020, with a value of £76.5bn.
NAO head Gareth Davies warned that authorities are not keeping pace with the transition to digital transactions, with limited oversight being held over cash for those who need it.
“HM Treasury now works more closely with the public bodies in the cash system to achieve the government’s goal of safeguarding access to cash,” he said.
“However, the approach is fragmented, and it is not clear that the action being taken will keep up with the pace of change.”
A spokesperson for The Royal Mint said though payment methods are changing, physical currency “remains core to our business”.
They added that it could begin manufacturing the coins again sooner if demand changed.