1p and 2p coins could be scrapped thanks to a rise in electronic payments

The penny could become a thing of the past, thanks to the rise in contactless and digital payments.

Phillip Hammond has told of his controversial plans to get rid of the 1p and 2p coins, as well as the £50 note, in the Autumn budget.

This comes after the Treasury revealed that 60 percent of all 1p and 2p coins are used only once before being put away into savings. It was also revealed that in eight percent of cases these coins are just thrown away.

According to the Treasury’s consultation document, the government and the Royal Mint have:

“needed to produce and issue over 500 million 1p and 2p coins each year to replace those falling out of circulation.”

One of the strongest criticisms of these changes comes from charities, who believe they will be strongly affected by these changes.

1p coins may be scrapped due to proposed changes made by the Treasury | Image Credit: Gizmodo

According to Karl Wilding, Director of Public Policy Volunteering at the National Council of Voluntary Organisations (NCVO), although there has been a massive rise in electronic payments, the majority of donations to charities are given in cash.

He said:

“Giving by cash methods remains, by some distance, the most popular way of giving to charity. 58 percent of donors give to charity using cash.

“Giving coins to charity is the starting point on a journey for lots of people. Direct Debits bring in more money to charities, but giving loose change underpins Britain’s culture of giving.

If we are going to scrap coins and notes then we need to think about ways to give smaller charities different ways to get people on the journey of giving to good causes.”

He added:

“Perhaps we should be thinking creatively about how we can encourage people to give them to good causes instead.

“As society moves from cash to digital payments we particularly need to help small charities get ready as the people who give pennies today are the people who give pounds tomorrow.”

Members of the public have taken to Twitter to express their concerns about the possible changes. Twitter user Jay believes that arcades, charities and homeless people will feel the impact of the scrapping of one and two pence coins.

 

Twitter use @wallin_08 believes that these changes will have a negative affect on many industries | Image Credit: @wallin_08 on Twitter

On the other hand, some believe that this could result in people donating higher amounts to charities instead, giving 5p or 10p coins instead.  Twitter user Alexander believes that “charities stand to benefit from this.”

Some members of public believe that getting rid of low value coins may result in charities receiving higher donations | Image Credit: @Xandyballs on Twitter


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