£1 coin is to be scrapped: New version will be shaped like old threepenny bit



George Osborne will announce the new coin in his Budget speech today

New pound, introduced to combat counterfeiting, will be introduced in 2017

12-sided design will resemble coin last used before decimalisation in 1971







The £1 coin is to be scrapped in favour of a 12-sided replacement modelled on the old threepenny bit.

George Osborne took a two-coloured prototype to Buckingham Palace last night to show to the Queen.



The Chancellor will use today’s Budget to announce that the switchover will start in 2017.



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Prototype: The new £1 coin will be introduced from 2017, and will be among the hardest in the world to forge

Ministers say urgent action is needed to combat the number of counterfeits in circulation. Designers claim the new coin will be the hardest to copy in the world.



In a nod to Britain’s heritage, it is the same shape as the 12-sided threepenny or ‘thrupenny’ bit, which was in circulation from 1937 until decimalisation in 1971.

The coin – in the same gold and silver colours as the euro – will force firms and councils to make expensive changes to parking meters, vending machines and shopping trolleys.



In a report published today, the Royal Mint estimates that an astonishing 45million £1 coins – 3 per cent of the total – are fake.

The figure is as high as 6 per cent in some parts of the UK and two million counterfeits are removed from circulation every year.



The £1 coin has been in use since 1983 – much longer than the normal life cycle for legal tender of its value – and 1.5billion were in circulation as of March 2013. The outdated technology used to make the coin leaves it vulnerable to sophisticated counterfeiters.



Its replacement will be roughly the same size with security features including bi-metallic construction, the 12-sided design and the use of iSIS – integrated Secure Identification System. This means an additive is built into coins which can be authenticated by high-speed scanners.



The technology will allow vending machines to spot fakes much more easily.

Design: The new coin, which George Osborne tweeted a picture of on the morning of his Budget, will incorporate two metals

As with all British coins, the Queen’s image will be on the obverse – ‘heads’ side. The Treasury will hold a competition to decide the design for the reverse, or ‘tails’ side.



‘The time is right to retire the current £1 coin and replace it with the most secure coin in the world,’ said a Treasury source.



‘With advances in technology making high value coins like the £1 ever more vulnerable to counterfeiters, it’s vital that we keep several paces ahead of the criminals to maintain the integrity of our currency.



‘We are particularly pleased the coin will take a giant leap into the future, using cutting edge British technology while at the same time paying a fitting tribute to the past in the 12-sided design of the iconic threepenny bit.’

Out with the old: The present £1 coin, left, will be replaced to allay concerns about counterfeiting. Its replacement will be a reworking of the old-fashioned threepenny bit, which last circulated in 1971



The threepenny bit was popular in the Second World War because its distinctive size and shape made it easy to recognise during the blackout.



Adam Lawrence, chief executive of the Royal Mint, said: ‘We’re extremely proud that the proposal includes the Royal Mint’s iSIS technology, offering greater currency security at a lower cost.

Announcement: George Osborne will include details of the new coin in his Budget speech today

It will enable coin authentication throughout the cash cycle, ensuring currency credibility.’ A Bank of England spokesman said: ‘The Bank welcomes today’s news from the Treasury as another step forward in our collective efforts to maintain public confidence in the currency.

Coins are the responsibility of the Royal Mint and together with the Bank’s decision to produce polymer banknotes, this change will enhance the security and integrity of the currency.’



John Sheridan, counterfeit currency expert at the National Crime Agency, said: ‘The issuing of a new coin with enhanced security features will make it more difficult for criminals to copy as well as presenting increased opportunities for law enforcement to investigate and disrupt the producers and distributors of counterfeit currency.’



The bill to convert parking meters, vending machines and phone boxes to take the new coin may be as high as £100million.



Some of the cost will be carried by councils, potentially diverting cash from other work, such as filling pot holes.



Town halls complained bitterly when new thicker 5p and 10p coins were introduced in 2012. They said the change would cost them £5.5million.



The new burden will mainly fall on firms operating 400,000 machines selling everything from train tickets to hot drinks and snacks. Supermarket trolleys, payphones and fruit machines will also have to be upgraded.



Kelvin Reynolds, of the British Parking Association, said members had expressed concerns about a rise in counterfeits and the inconvenience this caused motorists whose coins are rejected by payment machines



‘We look forward to working closely with the Royal Mint during the public consultation on the introduction of this new coin with its improved security features,’ he added.



A spokesman for the Automatic Vending Association said it was vital the change was undertaken at the lowest possible cost to industry.



Helen Dickinson, of the British Retail Consortium, said: ‘It is important for industry that any potential change is effectively planned and managed in order to minimise hardware costs for business.

