Halfpenny: The story of how a tiny, 'annoying' coin was abolished - BBC News BBC News Halfpenny: The story of how a tiny, 'annoying' coin was abolished By Vanessa Barford BBC News Magazine 21 May 2014 Close share panel Image copyright Alamy It's 30 years since the British decimal halfpenny was being phased out. Why did the UK hang on to a tiny coin for so long? Before everyone gets misty-eyed about the bronze halfpenny, it's worth remembering how annoying Britain's least loved coin, notorious for getting lost in trousers and furniture upholstery, was. People were commonly said not to bother to bend down in the street to pick it up if they dropped one. "In terms of the coins in your pocket, it's useless," the National Consumer Council told the Herald Tribune in 1983. News stand workers in the early 1980s couldn't even give the unloved halfpenny away, according to the paper. "We've got a bagful in the till, and although customers give them to us in payments sometimes, we can't hand any out," vendor Danny Curbishley complained.

The coin's pifflingness - or necessity - was regular fodder for the Times' letter pages. "Sir, I can scarcely believe that writers of letters bemoaning the demise of the halfpenny coin, because they would not be able to deal with some small-apertured possession without it, are being serious," wrote Pamela Johnson in February 1984. Image copyright Thinkstock "Sir, Some may dispute the 'rounding-up' or down, of the halfpenny coin, but let not its existence be imperilled. It is indispensable for levelling off pendulum clocks," countered Priscilla Glover in December. The then Chancellor Nigel Lawson announced the coin's demise in a written Commons answer in 1984, saying "most people would be glad to get rid of them". The Royal Mint stopped making them at the end of February, and it ceased to be legal tender in December. But the curious thing about the coin is not that it was abolished, rather that it lasted a full 13 years after its introduction with decimalisation in 1971.

The Treasury's delay in ending the halfpenny arose from fears that if the coin was abolished, retailers would raise prices to the nearest penny, which would in turn contribute to inflation. By 1984, the government had got to a point where it believed so few transactions would be affected, there would be no measurable impact. When it came down to it, Bank of England figures show inflation rose by 0.5% in January 1985. But accounts at the Bank in the subsequent months did not make mention of the removal of the halfpenny as a reason. A spokesman today says inflation was more likely to be down to a decline in exchange rates or a rise in commodity prices. Dr Kevin Clancy, director of the Royal Mint Museum, agrees that it is "profoundly unlikely" that the coin's withdrawal had any impact on inflation. "If you think of how many transactions occurred in 1984, the idea that the lowest denomination in British currency had an impact is extremely unlikely. There were far many bigger economic influences at play. The same questions were raised with decimalisation, and that was a whole system, not one coin.

The conclusion was even if retailers did adjust their prices by rounding up, the impact would be negligible in the economy of the nation." A study - albeit rather unscientific - of the price of a couple of items suggests fears all prices would be rounded up didn't materialise. The second class stamp rose from 12.5p in 1983 to 13p in 1984, then dropped to 12p in 1985. The price of a dog licence went from 37.5p in 1984 to 37p in 1985. And supermarket chains pledged to round prices down rather than up. Image copyright PA Image caption Nigel Lawson: The chancellor who abolished the halfpenny Apart from annoyance to ordinary people, the reasons for getting rid of the coin were compelling. "High inflation in the late 1970s had devalued the coin to the point that it was insignificant and costly to produce," says the British Museum's modern money curator Thomas Hockenhull.

"By 1984, it had an impractically small value and purchasing power." At the time, there was speculation the coin had become more expensive to make than its face value. Garrick Hileman, an economic historian at the London School of Economics, says the history of currency is littered with cases of when melted coins may have exceeded their purchasing power. Size was another sticking point. The halfpenny was tiny - about 17mm diameter compared with the current penny's 20mm - and critics complained many fell out of pockets and got stuck behind sofas.

Pre-decimal ha'penny Image copyright Thinkstock First minted in copper in 1717; minted in bronze from 1860, ceased to be legal tender in 1969 Image of Britannia appeared on coin reverse from 1860; from 1937 onwards featured image of the Golden Hind (pictured); like all British coinage, obverse carried portrait of monarch Colloquially written ha'penny, there were 480 in one pound sterling; coin was 25.48mm in diameter, and weighed 5.67g Research shows the optimum size of a coin is between 19mm-22mm, according to Clancey. "17mm is still fine - anything between 15mm and 28mm is practical - but it's at the lower end. At the other end of the scale the British crown [in 1707] was 38mm and was never popular," he says. The halfpenny also had an image problem because it wasn't very aesthetically pleasing as well, according to Hockenhull.

"It didn't have the Royal Coat of Arms like the pound coin, an image of Britannia or the ship of the pre-decimal halfpenny. It was a boring looking coin - not one I can't imagine anyone thinking beautiful. It also didn't symbolise a national identity. The halfpenny was always a part of a penny, never its own entity. Back in the 1300s they used to literally cut pennies in half to get halfpennies, or quarters for a farthing," he says. But having killed the halfpenny, why has the UK never done something about the penny? Hileman says the story of the halfpenny fits into a broader question over "the big problem of small change". More from the Magazine The coin less than any other in the world (February 2013) "There's an economic impact to having fewer denominations - it can create friction when the denomination isn't micro enough to accommodate the transactions people want to do. But the halfpenny fits into a historical problem of what happens to currency when it's not as efficient as it could be - in most cases it comes down to the cost it takes to produce versus its economic utility," he says.

The Canadian penny was withdrawn from circulation last year because production costs exceeded its monetary value. There has been a long-running debate in the US over the future of its single cent and the future of the British penny has been questioned. In 1984, not many people mourned the loss of the halfpenny. "The decimal halfpenny didn't have a long history. It was never top of the bill or had a starring role," says Clancy. But he says to dismiss the coin's value entirely would do it a disservice. "The halfpenny played an important role in the important transition to a new currency system. It was a point of familiarity. A way of reassuring people things hadn't changed too much," he says. Follow @BBCNewsMagazine on Twitter and on Facebook Halfpenny and Farthing - Old British Coin Denominations | The Royal Mint Museum Elizabeth II farthing Halfpenny and farthing Although the silver penny had been part of the currency since the middle of the seventh century, halfpennies and farthings did not become a regular feature until the 13th century.

Until then, for the purpose of change, pennies were cut into halves and quarters, so that a halfpenny was literally half a penny and a farthing a quarter or ‘fourthing’. As with the penny, round halfpennies and farthings in silver became in due course too small to be of practical use. The silver farthing ceased to be coined under Edward VI and the silver halfpenny 100 years later during the period of the Commonwealth. The resulting scarcity of small change prompted the striking of royal farthing tokens in copper from 1613, and in 1672 issues began of the first official copper halfpenny and farthing coins. These were handsome coins bearing on their reverse the seated figure of Britannia, who was to remain a feature of the coins until 1937, when a wren was adopted for the farthing and a sailing ship for the halfpenny. The farthing never circulated as freely as the halfpenny; minting ceased in 1956 and farthings were demonetised at the end of 1960.

The halfpenny survived until decimalisation, ceasing to be legal tender from 31 July 1969. Also in this section Did You Know? - Pre-Decimal Coins Did You Know? - Pre-Decimal Coins Pre-Decimal Crown Twelve pennies in a shilling and twenty shillings in a pound.... It's now over 40 years since the £ s d currency which had been used in the UK and Scotland was swept away and 240 pence to the pound were replaced by 100 new pence to the pound. Decimal Day (15 February 1971) was when the changeover took place. You'll note that in the collection of pre-decimal coins below, there is not a pound coin, far less one for two pounds as we have today. That was because in 1971 there were paper pound notes in circulation and the pound coin was not introduced until 1983 to replace the Bank of England one pound note; the Scottish banks (who are permitted to issue banknots but not coins) continued to issue one pound notes - the Royal Bank of Scotland in particular kept them going, sometimes as special commemorative issues. See Scottish Banknotes .

Farthing The word farthing is derived from the Anglo-Saxon feorthing, or fourth part An English penny. The farthing was first minted in silver in the 13th century and then after the Union of the Scottish and English Parliaments in 1707, a British farthing, made of base metal, was minted in 1714. It continued to be used until 31 December 1960, when they ceased to be legal tender and so were no longer in use by Decimal Day in 1971. Half Penny This coin began its 700 year history made from silver but as the value of silver increased, the coin was made from base metals. "Halfpenny", was pronounced HAY-pe-nee. It was long considered that the first halfpenny coins were produced in the reign of King Edward I (1272�1307), with earlier requirements for small change being provided by "cut coinage" - pennies cut into halves or quarters.

However, in recent years metal detectorists have discovered a few halfpennies of Kings Henry I (1100�1135) and Henry III (1216�1272). The halfpenny ceased to be minted in 1969 prior to decimalisation. Penny The "penny" originated as far back as the 8th century when a silver coin was minted (in England) which was one 240th part of a pound weight of silver. There were thus "240 pennies to a pound (of silver)". Pennies made of silver were minted until about 1750, then occasionally until about 1820; thereafter, they were only minted for Maundy money (when the British Monarch ceremonially distributes small silver coins known as "Maundy money" as symbolic alms to elderly recipients. From 1797, pennies for general circulation were minted in copper. Twelve pence made one shilling and so 240 pennies made a pound. To express an amount, penny was usually abbreviated to "d", e.g. 1d, from the Roman denarius.

The penny introduced at decimalisation (with 100 pennies to the pound) was a much smaller coin and was initially called a "new penny" to distinguish it from its predecessor. The original reverse of the new coin initially had "NEW PENNY" in the design but this changed to just "ONE PENNY" in 1982. "Silver" Threepence The silver three pence coin (expressed in writing as "3d") first appeared in England during the reign of King Edward VI (1547�1553). But it was unpopular as many preferred the four pence piece (known as a "groat") and there were times when it was not minted. During the reign of king George V (1910�1936) the silver content was reduced from sterling silver to a mixture of silver (50%),copper, and nickel and the design was completely changed in 1927 to three oak sprigs with three acorns and a "G" in the centre. By the end of George V's reign the threepence had become somewhat unpopular in England because of its small size, but it remained popular in Scotland.

It may be that the custom of putting threepence coins (wrapped in greaseproof paper) into Christmas cakes may have contributed to its continued popularity! A nickel-brass threepence took over the bulk of the production of the denomination, being produced in all years between 1937 and 1952 except 1947. Only small numbers were produced. Brass Threepence A new, larger, nickel-brass (79% copper, 20% zinc, 1% nickel) twelve-sided threepence coin was introduced at the time of the short reign of King Edward VIII and took over the bulk of the production of the denomination, being produced in all years between 1937 and 1952 except 1947. Initially the design incorporated a representation of the thrift plant but in the reign of Queen Elizabeth II the design became a Tudor portcullis with chains and a coronet. Following decimalisation, the brass threepence ceased to be legal tender after 31 August 1971. Sixpence The sixpence, worth six pre-decimal pennies, was known colloquially as a "tanner".

In England, the first sixpences were struck in the reign of Edward VI in 1551 and continued until they were rendered obsolete by decimalisation in 1971.The last general issue sixpence was issued in 1967 but sixpences continued to be legal tender at a value of 2� new pence until 30 June 1980. The coins were made of sterling silver until 1920, when they were reduced to 50 percent silver until 1946, after which they were changed to cupro-nickel from 1947 onwards. As the supply of silver threepence coins slowly disappeared, sixpences replaced them as the coins put into Christmas puddings. The traditional song "I've Got Sixpence" runs: "I've got sixpence. Jolly, jolly sixpence. I've got sixpence to last me all my life.

I've got twopence to spend and twopence to lend And twopence to send home to my wife." Shilling The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The abbreviation for shilling is the letter "s", from the Latin solidus, the name of a Roman coin. In England, a shilling coin was used from the reign of Henry II (or Edward VI ca 1550) until the Acts of Union ended the Kingdom of England (when, in the terms of Article 16 of the Articles of Union created by the Acts of Union of 1707, a common currency for the new United Kingdom was created). Because the shilling had the king's head on it, when a man agreed "to take the King's shilling" (or the Queen's shilling as the case may be) it meant that he agreed to serve as a soldier or sailor. Following decimalisation the British shilling was superseded by the five-pence piece with a comparable value, size and weight.

The pre-decimal shilling was withdrawn from circulation in 1990, when a five pence piece of reduced size was introduced. Two Shillings (Florin) The British two shilling coin, also known as the florin or "two bob bit" was issued from 1849 until 1967. It was worth one tenth of a pound, or twenty-four old pence. In 1847 a motion had been introduced in Parliament calling for the introduction of a decimal currency and the issue of coins of one-tenth and one-hundredth of a pound. The motion was subsequently withdrawn on the understanding that a one-tenth pound coin would be produced to test public opinion. There was considerable discussion about what the coin should be called, with centum, decade, and dime being among the suggestions. Eventually, florin was eventually settled upon, partly because of its connection with old English coinage, and partly because other European countries also had coins of approximately the same size and weight called florins.

In the reign of Queen Victoria a new design for the florin is said to have shock, including (allegedly) to Queen Victoria herself, was the omission of D G � Dei Gratia ("by the grace of God") � from the coin's inscription, which resulted in it being popularly known as the godless florin. The two shilling pieces produced in the reign of Queen Elizabeth II had the reverse showing a Tudor rose in the centre surrounded by thistles, shamrocks, and leeks, symbols for Scotland, Ireland and Wales. Half Crown This oddity, as the name suggests, was worth half of a crown, or equivalent to two and a half shillings (30 pennies). It has a long history, having been issued (in silver) as early as 1549, in the reign of Edward VI. The half crown was demonetised (ahead of other pre-decimal coins) on 1 January 1970, the year before the United Kingdom adopted decimal currency on Decimal Day.

In the reign of George VI (1937�1952), half crowns were 50% silver until 1946 when the metal was changed to cupro-nickel. Crown Although issued in England prior to the unification of Scotland and England, the British crown came into being with the Union of the Parliaments of England and Scotland in 1707. As with the English coin, its value was five shillings, which was a quarter of one pound. During the 19th and 20th centuries the Crown declined from being a real means of exchange to being a coin rarely spent but minted for commemorative purposes only. In that format it has continued to be minted into the 21st century, even following decimalization of the British currency in 1971. However, as the result of inflation the value of such crowns has been revised upwards to five pounds. The picture here is of the crown issued in 1953 and 1960 in Queen Elizabeth II's reign.

Decimalisation When computers came in the scene in the late 1950s and 1960s, they had to be programmed to deal with pounds, shillings and pence. Most systems converted values to pennies for internal working and converted them back to £,s,d when printed out or displayed on a computer screen. This was before pocket calculators had come on the scene - they would have struggled with £ s d.. But gradually, a decimal currency was seen to be more efficient. Of course, there was an emotional resistance from some to the loss of the traditional monetary system. Computer systems, banks and retailers had to prepare for the conversion well in advance of the cutover in 1971, not just for new and updated programs but also to train their staff in the new coins. As with the run-up to the Millennium, nearly 30 years later, all the hard work and preparations paid off and the changeover took place smoothly.

Banks were closed from 3:30pm on Wednesday, 10 February 1971 until 10:00am on Monday 15 February, to enable all outstanding cheques and credits in the clearing system to be processed and customers' account balances to be converted to decimal. New pennies and half penny coins were introduced but the old coins were temporarily assigned new values - the florin became 10 new pence, the shilling became 5 new pence and the old sixpenny coin filled a role as 2.5 new pence for a short while. To avoid confusion with the old currency, the term "New Pence" was brought into use with the letter "p" instead of the previous "d". Fairly rapidly, the general public dropped the word "new" and prices became what sounded like, for example "99 pee". Decimal Day itself went smoothly and after February 15, shops continued to accept payment in old coins, but always issued change in new coins. Use the "Back" button on your browser or click here to return to the Index of "Did You Know?" Where else would you like to go in Scotland?

Links Pages The Coinage of Britain - Recoinage 1816 to Decimalization 1,488,960 The system of coinage begun in 1816 was to endure with only minor changes until decimalization in 1970. The minting of copper coins resumed in 1821 when farthings were produced for George IV. These were followed by pennies and halfpence from 1825 onwards. All three denominations continued to be produced in most years until 1860 based on the standards established in 1806 and used a seated figure of Britannia for the reverse design. The date was carried on the obverse below the portrait bust. Most of the obverses were engraved by William Wyon, whose initials often appear in the design. George IV large copper penny 1826 Similar pennies were struck until 1860 by William IV and Victoria Weight 288 grains, 18.8 grammes - Diameter 34 mm.

In 1860 a change to the use of bronze instead of copper brought much smaller and lighter coins, half that of the copper coinage, and the use of a new portrait bust of Queen Victoria wearing her hair in a bun, hence the description "bun penny" etc. This was engraved by William Wyon's son, Leonard Charles Wyon. The standard for all three bronze coins was maintained until the reign of Queen Elizabeth II. Production of the farthing ended in 1956 and it ceased to be legal tender after 1960. The penny and halfpenny were minted until 1967. The penny enjoyed a brief life after the introduction of decimal coins in 1970 before being demonetized on 31 August 1971. The halfpenny ceased to be legal tender in 1969. Victoria bronze halfpenny introduced 1860 together with bronze pennies and farthings In silver, crowns were minted until 1847, among them the so-called "Gothic Crown" of Queen Victoria, probably the most beautiful coin ever made.

This was followed by a gap of 40 years until the Jubilee coinage of 1887, when production was resumed. After 1902 production was abandoned, only to be reintroduced in the reign of George V in 1927, after which it became a commemorative issue rather than being intended for circulation. COMMEMORATIVE CROWNS 1935 Jubilee of George V (Art Deco St. George and dragon) 1937 Accession of George VI 1951 Festival of Britain in 1951 1953 Coronation of Elizabeth II in 1953 1960 British Trade Fair in New York 1965 Death of Sir Winston Churchill This Winston Churchill crown is thought by many to be the most unattractive coin ever produced, an unfitting end to a noble series. The halfcrown was minted fairly constantly until 1850 when it was supplanted by the florin valued at two shillings, intended as the first step to the introduction of a decimal coinage.

In 1874, after the interest in decimalization had waned, the halfcrown was reintroduced, and continued in parallel to the florin until 1967. It was demonetized in December 1969. The florin itself, when first introduced in 1849, caused something of a furore as it omitted the letters "D.G.", meaning Dea Gratia (By the grace of God) from the obverse legend and was dubbed the "Godless florin". The omission was corrected on subsequent issues. Those issued 1851-1887 used a "Gothic" bust and lettering similar to that on the crown. The florin was incorporated seamlessly into the decimal coinage of 1970 as ten new pence, well over a century after the purpose for which it was originally intended. It remained legal tender until 1992. Queen Victoria - "Godless" florin 1849 An innovation in 1887 was the double florin or four-shilling piece, forming part of the series of coins struck to mark the Queen's Jubilee.

This series used the new "Jubilee head" portrait bust designed by Sir Joseph Edgar Boehm. This double florin was unpopular with the public and only lasted three years before it was discontinued. Queen Victoria - double florin 1887 The shilling was struck in most years until 1966. From 1831 to 1887 it used the a reverse incorporating the words "ONE SHILLING" surmounted by a crown and surrounded by oak leaves. Queen Victoria - silver Shilling 1871 The shillings of George V and Elizabeth II had two different reverse types. One with a lion standing on a crown is known as the English shilling and the other, with a lion seated on a crown with shields bearing the cross of St. Andrew and a thistle on either side, is called the Scottish shilling. All shillings from 1816 onwards remained legal tender after decimalization in 1970, valued at five new pence until finally demonetized in 1990.

Reverses of George VI shillings 1837 showing English and Scottish motifs The sixpence was also struck in most years until 1967 and briefly became two and a half new pence after decimalization until demonetized. Silver groats (fourpence) intended for circulation, as distinct from the Maundy fourpence, were only minted in the period 1836 to 1862. The reverse is a seated figure of Britannia. William VI groat 1836 The silver threepence piece used for currency was exactly the same as the Maundy threepence coin until 1927 when the reverse design was changed to oak leaves and acorns for George V and a Tudor rose for George VI, the latter continuing to be produced until 1945. George V silver threepence 1933 In 1937 a new 3d coin was introduced, a brass coin with twelve sides. This was based on a pattern produced for Edward VIII and continued until 1967, production ceasing following decimalization.

George VI brass twelve-sided threepence 1937 During the whole of the period following the great recoinage there were only two other significant changes to the currency. The first was the issue of ï¿½1 and ten shillings Treasury notes during World War I (1914-18). Although these were discontinued in 1922, from 1928 onwards Bank of England notes became a permanent part of the currency. Higher denomination promissory bank notes had been a feature of the economy since the mid-eighteenth century, with the name of the person to whom it was payable written in by hand. From 1855 these were made payable to bearer and were used for the convenient transfer and payment of large sums rather than as genuine currency, though this role gradually changed in time and their use became more accepted, especially after 1930. These were in denominations of five (the famous "white fiver"), ten, twenty, fifty, one hundred, two hundred, five hundred and one thousand pounds. These continued to be issued until 1944, after which only the ï¿½5 note was produced.

It was not until 1957 that ï¿½5 notes truly became part of the money in general circulation, with ï¿½10 and ï¿½20 notes added in the 1960's. Treasury note introduced during World War I Although sovereigns continued to be produced, they were treated solely as bullion once Britain had abandoned the gold standard in the early 1930's, trading above their nominal value of 20 shillings. The other major change was the debasement of the silver coinage from 92.5% silver to only 50%. This took place in 1920 and was followed in 1947 by the substitution of cupro-nickel instead of silver. It should be noted that although 1967 was the last year of minting the old coinage for currency, commemorative proof sets including all current denominations were made in 1970 to signal their passing. Pre-decimal 10 new pence and 5 new pence coins replaced the florin and shilling in production from 1968 to 1970.

Appendix I - Kings and Queens from the Great Recoinage to the present day. George III 1760-1820 George VI 1936 - 1952 Elizabeth II 1952 onwards Note: Only pattern coins were produced for Edward VIII, however, some of these, particularly the brass threepence, did escape into circulation. Appendix 2 Mintmarks GOLD COINS: In 1871, during the reign of Queen Victoria, gold sovereigns and half-sovereigns began to be minted in Sydney, Australia. To differentiate these coins the letter S was added below the shield on the reverse of the coin. Another mint was opened in Melbourne in 1872 and, towards the end of the reign a further mint was opened in Perth. On some reverses the mintmarks for these series were also placed below the head on the obverse. During the reign of Edward VII a mint in Ottawa, Canada, produced sovereigns, but no half-sovereigns, from 1908 to 1910, mintmarked C (to denote Canada). These coins are comparatively scarce and consequently command a premium.

The mint continued to produce sovereigns for George V, most of which are reasonably common. Sovereigns were also minted in Bombay, India, for George V, during 1918 and marked I. From 1923 to 1932 sovereigns were minted in Pretoria, South Africa, with some half-sovereigns during 1925-26, mintmark SA. Proofs of the gold ï¿½5 and ï¿½2 pieces were struck in Sydney in 1887 and 1902. BRONZE COINS: From 1874 to 1882 the bronze penny, halfpenny and farthing were minted by Messrs Ralph Heaton of Birmingham and bear a small letter H below the date on the reverse. The Heaton mint again produced pennies in 1912 and 1918-19 denoted by the letter H to the left of the date. Also in 1918-19 the Kings Norton Metal Co, Birmingham, produced pennies marked KN.

MINT MARKS ON COINS 1872-1932 Gold Appendix 4 Die Numbers Gold and silver coins of Victoria minted between 1863 and 1880 have a die number incorporated into the reverse design. Dies are known with quite high numbers but modern studies have not yet found examples of all the numbers used. Appendix 5 Artificial Darkening of farthings From 1897 to 1917 farthings were issued which had been artificially darkened by the mint. Allegedly this was done to prevent confusion with the gold half-sovereign. Farthings from this period which are not darkened have been cleaned. Page extensively modified 9 January 2002 Appendices 2-5 added 15 May 2002 Photo of George IV two pounds coin added 27 May 2002 Decimal Coins of the UK - The Change to Decimal Coinage The Change to Decimal Coinage Pictures of Decimal Coins Decimalisation Day D-Day was February 15th 1971.

On that day the United Kingdom changed from the centuries old tradition of using 12 pence to the shilling and 20 shillings to the pound to a new decimal 100 new pence to the pound. Options considered There had been much debate as to the best way of implementing the switch. Australia used a dollar valued at ten old shillings, making the new cent equal to 1.2 old pence, a small change in value. An alternative was to go to a pound-mil system, with a mil equal to 0.24 old pence, a latter-day successor to the farthing. Another was to keep the penny and have a new unit at 100 pence (eight shillings and fourpence). However, in the UK the pound was considered to be particularly important because of the UK's international trading status. In addition, having a new penny worth 2.4 old pence was less of a problem as inflation had made its purchasing power insignificant. As a temporary measure a half new penny was introduced, but as will be seen this had a short life. There was even a pattern quarter penny made in aluminium, but this was not proceeded with.

It was realised at the time that the decision was made that the life of the halfpenny would be very short, but it was felt necessary despite the considerable extra cost of having to mint the coin. Banks never accepted transactions involving an odd halfpenny. The Timetable for the Change The change was made gradually over three years, in a number of stages. In 1968 new shillings and florins were issued as 5 new pence and 10 new pence coins. The older shillings and florins continued to circulate long after decimalisation until the size of the coins was reduced. Theoretically silver coins from 1816 could still have been found in change, but the active withdrawal of silver in the years following the change in 1947, followed by the combination of a dramatic rise in the price of silver with devaluation in 1967 meant that silver coins rapidly vanished from circulation. Blue plastic wallets containing the new 5p and 10p coins dated 1968, along with 1/2p, 1p and 2p coins dated 1971 were put on sale. These wallets are still very common.

In October 1969 the 50 new pence piece replaced the 10 shilling note, which ceased to be legal tender on 22nd November 1970. The old halfpenny was demonetised on 1st August 1969. The half-crown was demonetised on 1st January 1970. The remaining decimal coins became legal tender on 15th February 1971. Maundy coins (and silver threepenny pieces of Maundy design, i.e. with a crowned three on the reverse) were revalued as being in new pence at the same time. The changeover was so rapid that the old penny and nickel brass threepence pieces had been removed from circulation by the end of 1971, although I know of one shop in the Yorkshire Dales which continued to use the old currency for a long time on the basis that 'this new-fangled stuff will never catch on'. The old penny and threepence coins ceased to be legal tender on 31st August 1971, just over six months after D-day.

It is no longer possible to exchange them for current coins at a bank. Later Developments The sixpence , which was allowed to continue circulating at 2½ new pence, was eventually withdrawn at the end of June 1980. I am indebted to Brian Dominic for the following quote from John Glover's book "London's Underground": "The adoption of decimal currency on 15 February 1971 posed a few problems for London Transport, which had favoured the £ Sterling being halved in value and divided into 100 pence - what today might be termed a '50p pound'. With their extensive use of coin operated machines, the Board took strong exception to the proposed introduction of ½p coins, the lack of any coin between 2p and 5p, and the lack of a close relationship of old values and coins with the new. It was all too difficult for them, and it was indeed at London Transport's behest that the 2½p (sixpence) was retained in the coinage for the time being." The term 'New Penny' was dropped in 1982 on the grounds that after ten years it was no longer 'new'.

In that year a new denomination, the 20p coin was introduced. It has proved very popular, and is one of the most frequently encountered coins in change. The pound coin was first issued in 1983. Again, there was a little resistance to the change from note to coin, but cessation of production of the pound note rapidly overcame the objections and the coin is now very well established. The notes were demonetised on 11th March 1988. The half penny coin was last minted for circulation in 1983. In 1984 the denomination was only issued in Mint and Proof Sets and in December 1984 the coin was demonetised, as inflation had rendered it an anachronism. In 1985 a new portrait came into use, designed by Raphael David Maklouf, although the portrait on the Maundy coins was unchanged. Commemorative two pound coins were first issued in 1986, but although legal tender they rarely circulated (some are appearing in change now that the bimetallic circulating coin has been introduced, but as they are about twice the weight of circulating coins, banks have difficulty handling them).

Crown sized commemorative coins valued at 25 pence continued to be minted, but after the Royal Wedding issue of 1981 later 'crowns' were valued at five pounds . This is a source of confusion, but the way to be sure is to know that if they are five pound coins they have the value on them. It was intended that a new two pound coin of the same diameter but thinner than the commemorative versions be introduced in November 1997, but due to technical problems (vending machines rejected them), the introduction was delayed until 1998. This new coin is bimetallic, being the first such coin to be issued in the UK since the tin farthings and halfpennies of the late 17th century. It is the subject of an urban legend, in that a rumour is going the rounds that those coins where the queen is wearing a necklace are rare. This is most definitely untrue, but hoarding of these coins means they not often found in change. In 1998 a further new obverse portrait was introduced, designed by Ian Rank-Broadley, which is still in use nearly ten years later.

In 2008 a new set of reverse designs has been revealed, which, in the words of the Royal Mint, 'are a contemporary take on traditional heraldry reflecting the nation's rich history'. These designs apply only to the denominations from 1 penny to 1 pound, and I have been told that both the old and the new reverse designs will be put into circulation dated 2008. Metal Change In 1992 the metal used for the one penny and two penny coins was changed from bronze to copper coated steel. The use of a pure copper coating means that the colour of mint coins is slightly different. Also, as the density of steel is less than bronze and the weight was unchanged, the newer coins are noticeably thicker than the older ones. The versions of these coins issued in the 1992 Mint and Proof sets are said to be bronze - only the circulation issue coins of that date were steel. In 1998 the 2p (and possibly the 1p) temporarily reverted to bronze because of technical problems at the Royal Mint. In 2011 the 5p and 10p coins will change to being made of plated steel as the lower denominations.

Perhaps the 20p and 50p will follow, but the sharper corners of these seven-sided coins may mitigate against this. Shrinkage As a result of inflation the coins based on the old system, the five pence and ten pence , were increasingly seen as oversized for their value. In 1990 a new smaller version of the 5p coin was introduced, and the old large ones along with the shillings that were still to be found were demonetised at the end of that year. The same technique was used for the 10p coin in 1992, with the old size 10p and florin being demonetised at the end of June 1993. Frustratingly, the new 10p is similar in size to the old large 5p, and very occasionally you get fooled! The next was the 50p coin , which was reduced in size in 1997. This also reduced the enormous stock of the larger coins held in banks due to a reduction in demand after the introduction of the pound coin.

A similar problem with the pound coin now that the circulating two pound coin has come into use did occur only to the extent that new one pound coins were not issued for circulation dated 1998 and 1999. A new series of 'normal' non-commemorative designs were released in 2008 for all except the two pound coin. As these were not announced until well into the year, coins up to one pound dated 2008 come in both the original 1968/1971 designs and the new 2008 design. The 2008 50p with Britannia reverse had a very low mintage - I have only seen one in circulation. Starting in 2009, an enormous variety of coins of various denominations are being issued in connection with the 2012 Olympics in London. The Future The penny and twopence coins have become ever more insignificant in value in everyday transactions. However, these two denominations comprise the largest bulk of new coins minted at the Royal Mint, no less than 71% in 1998-99.

The reason for this is simple - they are hoarded because of their low value, with pockets and purses being emptied of these relatively heavy coins each day. Australia and New Zealand have both abandoned the 1 and 2 cent coins, with no significant effect on either trade or inflation. Cash transactions are rounded to the nearest 5 cents, while credit card transactions and cheques can still be written for odd cents. How soon will the UK bow to the inevitable and demonetise the 'coppers'? Legal Tender The following applies to England and Wales: 20p and 50p coins are legal tender up to a total value of 10 pounds. 5p and 10p coins are legal tender up to a total value of 5 pounds. 1p and 2p coins are legal tender up to a total of 20 pence. Therefore you cannot insist on paying your Income Tax (or other unpopular bill) in 1p coins! While five pound coins and old monometallic thick two pound coins are technically legal tender, banks do not accept them. As a result you might find it difficult to find traders willing to accept them.

I gather that Scotland does not have any legal restriction, other than that payment should be presented in a reasonable manner. Tendering a large sum in pennies might not be considered 'reasonable', but the boundary between reasonable and unreasonable is not defined! Acknowledgements See my Coins Index page for acknowledgements CSV File of Values Download a CSV file of the values of decimal coins. Links

Question: During which year did the pre-decimal halfpenny coin cease to be legal tender in the UK?
Answer: 1969