Could we be nearing the end of 1p and 2p coins?

THE value of the 1p and 2p coins has been called into question again this year in the spring statement.

Canada and Australia are amongst many others who have taken the hit and abolished their low denomination coins – everything is rounded to the nearest 5 cents.

Surveys in the UK suggest that six out of ten 1p and 2p coins are only used once in circulation before being kept in a jar or discarded.

George Osbourne was within weeks of scrapping 1p and 2p coins in 2016 because they are very expensive to produce and people like them less.

The government could be scrapping the 1 and 2 pence pieces
The government could be scrapping the 1 and 2 pence pieces

When one and two cent coins were scrapped in Australia it caused a backlash from charities who benefited from people handing over their spare change.

David Cameron vetoed the idea, however, because he feared the symbolism of the Tory party scrapping small change.

The idea to get rid of all cash transactions by 2020 was also considered in No. 10, however this was also put to rest due to a worry that it might scare people of an older generation.

Since the release of contactless cards in 2007, Apple pay in 2014 and Google pay in 2017, the use of cash transactions in stores has been dropping.

Cash payments out, cashless in!
Cash payments out, cashless in!

Contactless payments accounted for a third of all card payments in 2015 and since then have increased to 42.6% of all transactions pulling ahead of cash by 0.3%.

We can only estimate that the use of contactless cards and payments via phones will increase further in coming years.

Let us know what you think should happen with our copper coins on our twitter, @SSUJournalism

by Tiffany Sankey (@tiffanysankey_), Sarah Coward (@sarahcoward95) and Mason Benning (@MasonBenning)