The Royal Mint has accumulated millions of 1p and 2p coins in warehouses across the UK, with approximately £4 million worth of surplus copper coins now sitting unused. According to industry data, around 260 million of these coins have been stored indefinitely, including two-thirds of the 225 million 2p coins and 110 million of the 200 million 1p coins that were minted.
The growing surplus means that the number of 1p and 2p coins in storage now surpasses those in circulation. Surveys suggest that over half of the 2p coins entering circulation are only used once before ending up in storage, with one in twelve being discarded altogether.
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The Royal Mint, responsible for producing British coins, has not recycled or melted down excess coins since shutting down its smelting facility over a decade ago. The organisation currently only accepts damaged coins for processing. Meanwhile, the Treasury has not requested any new 1p or 2p coins this year, reflecting the continued decline in cash usage across the UK.
With an estimated 27 billion coins in circulation, the Treasury has stated that it has “no plans” to alter the mix of UK coins in the system. Royal Mint records reveal that while 30 million 1p coins were produced in 2022, none were minted in 2023. Additionally, the production of 2p coins has ceased since 2021.
UK Finance highlighted the industry’s commitment to the ongoing use of cash but emphasised the need to ensure that the right types of notes and coins are available. The spokesperson also suggested the potential need to recycle some of the current coins in circulation.
