Author Topic: National Audit Office releases report on cash in the UK  (Read 1013 times)

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Offline Bimat

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Re: National Audit Office releases report on cash in the UK
« Reply #15 on: October 12, 2020, 04:44:29 PM »
No new 2p or £2 coins to be made for 10 years

By Kevin Peachey
Personal finance correspondent

17 September

Anyone who likes to see a new production date on their coins is set for a disappointing decade.

The Royal Mint has no plans to make new 2p or £2 coins for the next 10 years.

A coin mountain lies in storage as demand has dropped, in contrast to banknotes.

The issue was revealed in a wide-ranging report on the future of cash by the National Audit Office (NAO) warning it could become harder to access by those who rely on it.

It warned that the authorities were not keeping up with the pace of change in digital payments - leaving those who needed cash at risk.

Ten years ago, cash was used in six out of 10 transactions but by 2019 it was used in less than three in 10 purchases.

The NAO said the coronavirus outbreak may have accelerated the trend.

Despite the decline in cash use, a riddle remains over demand for coins and banknotes.

Coin-making has been cut by The Royal Mint but stocks of every coin in circulation are exceeding its targets. For £2 coins, the hoard is 26 times over target.

A spokeswoman for The Royal Mint said 2p and £2 coin production could return if needed.

"We constantly monitor the demand for coins from the banks and Post Offices, and seek permission to manufacture more from HM Treasury," she said.

These coins have not been needed because lots of old coins were returned to circulation when the 12-sided £1 coin was launched in March 2017.

Everyone had six months to return their old round pounds and emptied savings jam jars or money stores at work, sending the entire contents back to their banks.

In contrast, demand for banknotes has been rising and there is little reliable information over the whereabouts of £50bn worth of notes in circulation.

They are not used in transactions or held as savings, but may be overseas, tucked away in homes unreported or being used in the "shadow economy".

Old and poor 'left behind'

The NAO said there were wider issues over access to cash, partly owing to the closure of 17% of cash machines in two years.

Older and lower-income consumers tended to use cash more and were at risk if nobody took responsibility for stopping the slide in cash access.

"Cash use might be declining overall but it remains a vital part of millions of people's lives - particularly for some of the most vulnerable in society," said Meg Hiller, who chairs the influential Public Accounts Committee in the House of Commons.

"The government took its eye off the ball and too many people already have to go out of their way to get their hands on cash.

"It and the regulators will have to hurry to catch up with fast-moving technology, or even more people could be left behind."

The government has committed, with legislation, to protect access to cash, and address the sustainability of the cash infrastructure as its use falls. Some businesses that transport or process cash could struggle, it said.

The NAO said it could not currently see a clear link between the government's aim and which of the various public bodies involved in overseeing the cash network could actually make it happen.

Gareth Davies, head of the NAO, said: "The approach is fragmented, and it is not clear that the action being taken will keep up with the pace of change.

"As society progresses towards the wide use of digital payments, the use of cash in transactions is dwindling. It may become harder for people to access cash when they need it and those without the means to pay digitally will struggle if cash is not accepted."

Source: BBC
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Offline Bimat

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Re: National Audit Office releases report on cash in the UK
« Reply #16 on: October 12, 2020, 04:46:54 PM »
If this is true, then we are set to see heaps of overpriced £2 commemorative coins getting issued for next several years.

Aditya
It is our choices...that show what we truly are, far more than our abilities. -J. K. Rowling.

Offline eurocoin

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Re: National Audit Office releases report on cash in the UK
« Reply #17 on: November 13, 2020, 04:07:17 PM »
Since the release of this report the situation has changed significantly. Because of great demand for the 2p and 2 pound denominations during the pandemic, according to Royal Mint CEO Anne Jessopp, the Royal Mint now expects to produce 2p coins again for general circulation within the next 6 months and 2 pound coins for general circulation within the next 3 years.

That is of course a major difference with the information in the report, when the Royal Mint was still estimating it would not have to produce these denominations for at least the next 10 years.
« Last Edit: November 13, 2020, 04:21:25 PM by eurocoin »

Offline redlock

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Re: National Audit Office releases report on cash in the UK
« Reply #18 on: November 13, 2020, 07:15:44 PM »
Because of great demand for the 2p and 2 pound denominations during the pandemic, according to Royal Mint CEO Anne Jessopp, the Royal Mint now expects to produce 2p coins again for general circulation within the next 6 months and 2 pound coins for general circulation within the next 3 years.

Really?  :o
I am very surprised. I thought everyone is now paying cashless in the UK because of the pandemic (fear of catching the virus through contact with cash).

Offline eurocoin

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Re: National Audit Office releases report on cash in the UK
« Reply #19 on: November 13, 2020, 07:31:12 PM »
Quote
Really?  :o

Specially for you, I have invited Ms Jessopp to this topic  ;)
But yes, on a more serious note, it is indeed interesting.




Offline redlock

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Re: National Audit Office releases report on cash in the UK
« Reply #20 on: November 14, 2020, 11:29:26 AM »
Specially for you, I have invited Ms Jessopp to this topic  ;)

Thanks for doing so.  ;D

Offline eurocoin

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Re: National Audit Office releases report on cash in the UK
« Reply #21 on: February 27, 2021, 12:01:00 AM »
Before the pandemic the UK was already one of the leading countries when it comes to going cashless. During the pandemic the use of coins in the UK has dropped by upto 20%. Royal Mint CEO Anne Jessopp expects that a significant part of that will never be restored.

Offline Alan71

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Re: National Audit Office releases report on cash in the UK
« Reply #22 on: February 27, 2021, 10:44:53 AM »
Before the pandemic the UK was already one of the leading countries when it comes to going cashless. During the pandemic the use of coins in the UK has dropped by upto 20%. Royal Mint CEO Anne Jessopp expects that a significant part of that will never be restored.
I’m not surprised.  As with many things (demise of high streets, working from home), COVID has just speeded up what was already happening.  I’m still cashless myself and very much doubt I’ll ever go back.  It’s so much easier without them that I’m wondering why I didn’t do it years ago.

Offline andyg

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Re: National Audit Office releases report on cash in the UK
« Reply #23 on: February 27, 2021, 11:07:34 AM »
In Lichfield the other morning, I was affixing a new timetable to a bus shelter (don't ask) - one of our drivers wandered past and asked if I would like a coffee from the shop just up the road.  I paid for his and mine - with cash - at present there isn't another way around this dilemma, as I wouldn't want my bank card out of my sight.
always willing to trade modern UK coins for modern coins from elsewhere....

Offline FosseWay

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Re: National Audit Office releases report on cash in the UK
« Reply #24 on: February 27, 2021, 09:14:37 PM »
In Lichfield the other morning, I was affixing a new timetable to a bus shelter (don't ask) - one of our drivers wandered past and asked if I would like a coffee from the shop just up the road.  I paid for his and mine - with cash - at present there isn't another way around this dilemma, as I wouldn't want my bank card out of my sight.

In that situation, the normal procedure for me would be for one of us to buy both coffees on a card, and the other to swish the money to the one who paid (or just agree that the other would pay next time, if applicable).

Offline Alan71

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Re: National Audit Office releases report on cash in the UK
« Reply #25 on: February 27, 2021, 09:59:41 PM »
In that situation, the normal procedure for me would be for one of us to buy both coffees on a card, and the other to swish the money to the one who paid (or just agree that the other would pay next time, if applicable).
Yes, that’s what I’d do.  Go into my banking app and pay them what I owe.  They’d get their money just as instantly as paying them cash.