The Treasury has announced that a delay in changes to the metal composition of 5p and 10p coins has cost taxpayers £10 million.
The Royal Mint had planned to issue new coins made from cheaper nickel-plated stainless steel,
rather than the current copper and nickel alloy. However the planned changes have been delayed
until next year, following complaints from the vending industry that the new coins won’t be
accepted in millions of vending machines across the country.
Yesterday’s Budget showed that the Treasury had already taken the projected £10 million cost
saving from the new coins into account in its income forecast for 2011. This means that the amount
is now considered a loss, which will have to be funded from elsewhere.
The Royal Mint now plans to begin minting the new coins from the 1st of January 2012. The new 5p
and 10p coins will be slightly thicker than the existing issues. For the first time, the coins will also be
magnetic.
The Automatic Vending Association welcomed the Mint’s decision to delay launching the new coins,
saying that it would save the industry tens of millions of pounds by giving more time to reprogram or
replace machines.
They had described the proposed change as a “disaster”, pointing out that the coins would not be
accepted by millions of existing vending machines and parking meters.
