No plans to alter £1 coin as small change changes

The UK government has insisted it has no plans to change how the £1 coin is made amid fears a new version would cost the vending machine industry £100 million.

Labour peer Baroness Smith of Basildon raised the issue in light of the expected £25m cost of altering vending machines to deal with the new 5p and 10p coins, which are being introduced from this month.

She called for full consultation and possible compensation if the pound were to be changed.

But Treasury Minister Lord Sassoon said the £1 coin would only be changed if there was a drop in public confidence in it. The new 5p and 10p coins are made of nickel-plated steel and are cheaper than the existing copper and nickel coins.

They are the same size and weight as the existing ones but are thicker. While many machines have been upgraded to accept both types, others can currently only accept the older-style coins.

The steel coins’ introduction was delayed for a year to allow time to make the adjustments and they will be gradually phased into circulation.

The government estimates the new coins will save the Treasury between £7m and £8m a year.