After more than 30 years, the £1 coin will finally be replaced in March with a new, distinctive 12-sided coin. Due to the evolution of sophisticated counterfeits, the current £1 has become increasingly vulnerable. With approximately one in 30 £1 coins in circulation being counterfeit, the launch of the new, highly secure coin will reduce costs of counterfeits to businesses and the tax payer.
How is the new coin more secure?
With an estimated 45 million forgeries in circulation it was vital for changes to be made. Former Chief Secretary to the Treasury, David Gauke, described the new £1 coin as the “most secure of its kind in the world and its cutting-edge features will present a significant barrier to counterfeiters, reducing the cost to businesses and the taxpayer.” With the new £1 coin being billed as the most secure coin in the world, what exactly makes the new coin so secure?
What does your business need to do?
Before the new £1 coin launches In March, any business which handles cash needs to ensure it is prepared. Due to the vast changes between the new coin and the old, businesses will need to upgrade or replace its current cash handling machines, as well as train their staff on the changes.
- October 2016 to March 2017 – Businesses train staff and upgrade coin handling equipment to suit the needs of the new £1 coin.
- March 2017 – The new £1 coin is introduced into circulation.
- March to October – Co-circulation period where both current and new £1 coin can be used.
- October 2017 onwards – The current £1 coin is no longer considered legal tender and only the new coin can be used.
During Co-Circulation Period
- You can accept both coins from your customers
- Your equipment may be able to accept or dispense both £1 coins
- You will need to tell your customers which coins your equipment can accept
- You should agree with your bank or cash in transit (CIT) provider how to return the current £1 coin and new £1 coin
Post Co-Circulation Period
- All your coin handling equipment should be able to accept the new £1 coin
- You should neither accept nor distribute the round £1 coin
- The round £1 coin can continue to be deposited into a customer’s account at most high street banks and the Post Office
How can we help?
With the introduction of the new £1 coin, businesses will need assurance they can still differentiate between real and counterfeit coins. We provide that assurance.
It is essential all UK businesses that handle cash plan and prepare for this initiative. If your business uses cash handling machines, ensure you know which machines are being operated, and which adaptations will be required and when they will be available.
Our extensive range of Safescan machines are adaptable, compliant and ready for the launch of the new £1 coin. Working closely with the Royal Mint, Safescan are able to develop products and updates that will correctly and accurately count the new coins, as well as being compatible with the new £5 polymer note. With our product range you rest assured that your business will not be affected by counterfeits. If you would like more information, or to view our range of cash handling machines, please speak to your Account Manager or contact us today.