The Government has announced that the current £1 coin is being replaced for the first time in over 30 years because of its vulnerability to sophisticated counterfeiters. The new 12-sided coin resembles the old ‘threepenny bit’, with the Royal Mint claiming that it will be the world’s most secure coin in circulation.
Levels of counterfeit £1 coins have been as high as 3% in the past few years, equating to around 45 million coins. The new coin will aim to reduce the costs of counterfeits to businesses and the taxpayer.
It has been confirmed that the new coin will be introduced in March 2017 and that there will be a six-month period of co-circulation, where the current £1 and the new £1 coins will both be in circulation.
In a submission to the Treasury’s consultation on replacing the coin, ACS raised concerns about consumer confusion in stores during the co-circulation period.
ACS chief executive James Lowman said: “81% of transactions in convenience stores are cash based and many retailers utilise coin operated machines for services like coffee and through self-service tills, so we expect some disruption in stores as employees and the public get used to the new £1 coin and while stores go through the process of adapting their machines. We are working with the Treasury to communicate changes to retailers and ensure minimal disruption.”
The Royal Mint have stated that they will continue to work with key industries and businesses during the introduction phase of the new £1 coin, and an awareness and education campaign is planned to assist businesses leading up to the launch in 2017.
