Downing Street has reaffirmed that there are no plans to phase out copper coins in Britain, despite former U.S. President Donald Trump ordering an end to penny production in the United States.
Trump directed the U.S. Treasury to cease minting one-cent coins, calling them “wasteful” and vowing to save taxpayers’ money “a penny at a time.” Announcing the decision on Truth Social, he argued that producing a single U.S. penny “literally costs us more than two cents.”
The role of low-value coins has been under review in recent years as Britain continues shifting towards a cashless society. A report by UK Finance, the banking trade body, found that 39% of British adults lived largely cashless lives in 2023. However, 1.5 million consumers—around 2.6% of UK adults—still relied
primarily on cash.
Following Labour’s election victory in July, it was revealed that HM Treasury had not placed any new orders with the Royal Mint for coins intended for general circulation in 2024. While no official policy change has been announced, it is expected that no new 1p or 2p coins will be minted in the coming years. The Treasury maintains that the current coin supply is sufficient, stating there are “no current plans to change the mix of UK coins.”
Royal Mint figures show that no new 2p coins have been produced since 2021, with none minted between 2018 and 2020 either. Despite the gradual decline of cash use, UK Finance noted an increase in the number of people relying on cash in 2023—rising to 1.5 million from 0.9 million in 2022—suggesting many turned to physical money to better manage their spending amid the cost-of-living crisis.
In the U.S., Elon Musk’s Department of Government Efficiency (DOGE) recently reported that producing a single penny costs over three cents. In the 2022-23 financial year, the total cost of penny production to American taxpayers was estimated at $179 million (£145 million).
Announcing the move on Truth Social, Trump declared: “For far too long, the United States has minted pennies that literally cost us more than two cents. This is so wasteful! I have instructed my Secretary of the U.S. Treasury to stop producing new pennies. Let’s cut waste from our great nation’s budget, even if it’s a penny at a time.”
