Low value coins to remain in circulation

More than 1,000 responses were received following a public consultation

The government has confirmed low value coins will remain in circulation, and a system of rounding cash transactions is not being pursued further.

A public consultation which asked if 1p, 2p and 5p coins should be withdrawn and a rounding-to-the-nearest-10p system implemented received 1,050 responses.

Of those responses, 1,008 were individuals and 41 were organisations.  55 percent of which were against the proposals and 45 percent were in favour.

Although the coins will remain in circulation, Treasury says it won't continue minting 1p and 2p's due to the cost of production and storage.

Minister Alex Allinson says: "While the outcome means there will be little effect in the short-term, it’s important to note the consistent trend in the declining use of cash.

"This has been recorded in the UK and also locally by the Department for Enterprise, whose recent survey showed transactions split 70 percent digital and 30 percent cash.

"Recognising that the number of 1p and 2p coins in general circulation will gradually decline over time due to no more being minted, the Treasury Minister is keen for businesses to consider how a voluntary rounding policy for cash transactions may apply to their particular business.

"Issues facing charities were raised as a key concern through the consultation as so many rely on donations of loose change, which people tend not to carry these days. I’d like to appeal to people to dig out any jars of small change they may have and give them to a good cause.

"I’d also encourage charities to look at the support available to modernise their collection strategy through investment in mobile card readers."

The department says the Manx Lottery Trust is able to support charities wishing to purchase mobile card readers.