Pound Coin Problems

The treasury has said that businesses should start getting ready for the introduction of the new 12 sided pound coin which comes into circulation in March 2017.

The new pound coin is being introduced due to the fact that nearly 1 in every 30 pound coins currently in circulation is fake.

The new 12 sided coin, according to the treasury, is the most secure of its kind in the world and will present a significant barrier to counterfeiters with its cutting edge technol.

So, what are the implications on businesses?

Well, they are huge.

Firstly, the treasury has advised that businesses need to train all their staff in preparation for the new coin, in particular, its new features.

Secondly, all machines that accept cash need to be updated to take the new pound coin.

Thirdly, there will be a six month transitional period whereby all businesses will need to find a way of accepting both the new coin and the old coin. After that, the existing one pound coin will be phased out.

The Automatic Vending Association has said it expects the process to cost the industry around £32 million.

The Local Government Association has also expressed concerns given the substantial budget reductions that local councils have experienced and the need (and cost) to adapt all parking meters to accept both coins for 6 months and then only accept the new coin thereafter.