Will 1p and 2p coins be scrapped, what can you buy for a penny and why does Philip Hammond want to ditch coppers?
The Chancellor used his Spring Statement to resurrect proposals to abolish the 'obsolete' copper change
CHANCELLOR Philip Hammond revealed shocking plans in his Spring Statement to scrap the 1p and 2p coins.
He was branded a “penny-pincher” by critics after resurrecting proposals to abolish the “obsolete” copper change.
Why does Philip Hammond want to ditch copper coins?
Original plans to get rid of the 1p and 2p coins were announced by former Chancellor George Osborne.
The copper coins face scrapping because they are more expensive to produce and people like them less.
Osborne’s proposals were just weeks away from coming into effect when then Prime Minister David Cameron stepped in and blocked the move.
Downing Street feared the “symbolism” of the Tories doing away with coins would be a vote loser after warnings from charities that their donations would suffer.
More than 500 million 1p and 2p coins have to be produced every year as so many are lost down sofas or put in saving jars.
And the Treasury now says shops have already started to “round” the price of products to avoid giving change in anything below 5p coins.
About six in 10 1p and 2p coins are believed to be used only once before they are put into savings jars - and around 8 per cent are thrown away.
But following a backlash against the Chancellor's announcement, a spokesman for No 10 said: "There are no proposals to scarp 1p or 2p coins in the consultation that HMT issued yesterday.
"The call for evidence is simply intended to enable the Government to better understand the role of cash and digital payments in the new economy.
"One thing HMT were seeking views on was whether the current denominational mix of coins meets the public's needs, and from the early reaction it looks as if it does."
Latest Money News
What can you buy for a penny?
According to the Royal Mint, 1p and 2p coins are legal tender only if you are paying for something costing 20p or less.
Once you have amassed 21 or more 1p pieces, your coins contravene the Coinage Act 1971, even if used in a single transaction.
This sadly applies even if you are buying penny sweets.
If you want something a little more substantial than a bag of candy, have hundreds of CDs on sale for a penny.
Or head to eBay for bizarre trinkets galore – all yours for the price of a few coppers.
We pay for your stories! Do you have a story for The Sun Online news team? Email us at [email protected] or call 0207 782 4368. We pay for videos too. Click here to upload yours.