Treasury considering withdrawal of 1ps, 2ps and £50 note

Signs are emerging that the Treasury is considering the withdrawal of 1ps, 2ps and the £50 note.

One of the consultations announced in the Spring Statement is looking into cash and digital payments in the new economy.

The paper highlighted that: “From an economic perspective, having large numbers of denominations that are not in demand, saved by the public, or in long term storage at cash processors rather than used in circulation does not contribute to an efficient or cost effective cash cycle.”

Hargreaves Lansdown persona finance analyst Sarah Coles: “The writing looks to be on the wall for 1ps and 2ps. When it costs more to produce and distribute a coin than the coin itself is worth, governments tend to decide it’s a spent force - and we’re rapidly heading in that direction for coppers.”

“The root of the issue is that demand for these coins has dramatically declined. People are increasingly using debit cards and contactless payments for low value spending. Cash was used for 7.2 billion transactions of under £1 in 2006. By 2016 it had fallen to 4 billion, and by 2026 it is expected to fall to 1.3 billion. Meanwhile, shops are using rounded pricing to save the bother of handling low value coins, so even those who stick with cash have less use for coppers.”

“Many of the costs of manufacturing and distributing them are fixed – and some are actually rising at the moment - so falling volumes means it costs more to handle each coin. When you add in the impact of inflation eroding their real value, it’s clear that the days are numbered for copper coins.”

The consultation paper also revealed that at the other end of the spectrum, the £50 note is under pressure. It said it is believed to be rarely used, and held as a store of value instead. There’s also a perception that it is often used for money laundering, hidden economy activity, and tax evasion.

    Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

The role of the bridging market and technology usage in the industry
Content editor, Dan McGrath, sat down with chief operating officer at Black & White Bridging, Damien Druce, and head of development finance at Empire Global Finance, Pete Williams, to explore the role of the bridging sector, the role of AI across the industry and how the property market has fared in the Labour Government’s first year in office.

Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



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, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

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.