The Treasury is warning all cash-handling retailers and vending machine operators that they need to be prepared for the new pound coin which comes into circulation in March next year.
Since 2014, when the government announced in the budget its intention to introduce a “highly secure” £1 coin after admitting the existing ones were easy to fake, the Royal Mint has been working towards a new coin’s launch next spring. Millions of vending and parking machines will have to be adapted to enable them to accept the new coins, which have already been likened to the 12-sided 3d piece that disappeared with decimalisation in 1971.
Businesses and other cash-handling bodies are being targeted with a new campaign to help them prepare for the new coin’s arrival. A website – thenewpoundcoin.com – has also gone live.
The Treasury wants retailers and others to make sure equipment and other cash-handling processes are ready for the new coin’s arrival.
The process is complicated by the fact that the current £1 coins, which date back to 1983, will continue to be legal tender alongside the new ones until September 2017. The new coins have been introduced because 3% of the existing ones are thought to be counterfeit.
The Guardian understands that around 40% of vending and other cash-receiving machines will require the coin mechanism to be removed and sent away to be upgraded. Newer machines can be updated with a simple software upgrade. However, all will be expected to accept both coins for the six-month changeover.
The Royal Mint has already provided vending equipment manufacturers with sample new coins to allow upgrades to be ready in time.
David Gauke, the chief secretary to the Treasury, said: “The pound as we know it will not be round for much longer. The introduction of this new £1 coin will be a highly significant event and we are working with the Royal Mint to ensure key industries are ready and to ensure a smooth transition”.