Downing Street has signalled a retreat in the face of a public backlash around its plans to scrap 1p and 2p coins.

In a consultation document, The Treasury had said: “From an economic perspective, having large numbers of denominations that are not in demand… does not contribute to an efficient or costeffective cash cycle.”

Charities and pensioners’ groups have raised concerns however about the impact on donations and the elderly.

However a spokesperson for Theresa May insisted that there were “no proposals to scrap one or two pence coins in the consultation that [the Treasury] issued”, adding: “The call for evidence is simply intended to enable the government to better understand the role of cash and digital payments in the new economy. One thing HMT were seeking views on was whether the current denominational mix of coins meets the public’s needed, and from the early reaction it looks as if it does.”

The consultation also stated that ministers were considering dropping the £50 note and implementing a limit on cash transactions that could make it illegal to pay builders cash in hand. No 10 signalled that these options were still being considered.

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