No 1p or 2p coins created for first time since 1972

The Treasury has confirmed that it did not mint a single 1p or 2p coin last year.

2p and 1p coins
2p and 1p coins

This is the first time since 1972 that no new 1p coins have been struck and since 1982 that no new 2p coins were made.

It also did not produce any £2 coins, saying there were already plenty of these in circulation.

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A Treasury spokesman said: “We didn’t ask the mint to issue any £2 or 1p/2p coins this past year because there are already enough of these in circulation. Our coins are of the highest quality and the amount we ask the Royal Mint to produce every year depends on demand from banks and Post Offices.”

HM Treasury - PA photo

Last year the Treasury consulted on scrapping 1p and 2p coins but within 24 hours a U-turn had been announced following negative media coverage.

Leading accountancy body, Association of Accounting Technicians (AAT), last year called for the coins to be scrapped in its response to the Government consultation.

Phil Hall, Head of Public Affairs & Public Policy, said: “Last year AAT made clear in its consultation response to the Treasury that there is a compelling and rational case to stop producing 1p and 2p coins.

"The majority of these coins are used in a only a single transaction before they leave the cash cycle, having been saved in jars or thrown away; the Royal Mint ordinarily need to produce and issue around 500 million 1p and 2p coins each year to replace those falling out of circulation; the cost of production is the same as for higher denomination coins, meaning it is costing more to make and distribute the coin than it is worth. This simply doesn’t add up, which is why Government should seriously consider getting rid of these coins.”

Could 1p and 2p coins be phased out?

Association of Accounting Technicians (AAT) has over 140,000 members including 4,250 licensed accountants who provide tax and accountancy services to more than 400,000 British SMEs.