There are no plans to make new 2p or £2 coins for the next ten years.
The Royal Mint has more than enough as demand for coins drop rapidly.
That’s according to a report from the National Audit Office on the production and distribution of cash.
The public spending watchdog said the Mint was aiming to decrease stock levels steadily throughout the next decade, without “risking the loss of its own production capacity”.
According to the report, in March the Mint “did not envisage producing any new 2p or £2 coins for at least ten years” – the minimum length of time predicted it would take for stocks to run out.
When asked, the Mint said it “constantly monitors” demand for coins from banks and post offices, before seeking permission to manufacture more from the Treasury, adding “as such demand might change over time”.
The audit office noted a sharp increase in demand for coins in March as businesses and consumers “hoarded coins” in the early months of the coronavirus pandemic.
Coins have played a central role in the UK as a means of payment over the years, with cash the most frequently used payment method up until 2017.
The use of cash is in decline, with it being used in less than three in ten transactions last year – compared against six in ten transactions a decade ago.
Despite the stockpiling of coins initially, there has been a drop in the the use of cash throughout the pandemic.
It is thought this will accelerate a trend towards its further infrequent use.
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