Why is there a new £1 coin?
The current £1 coin is being replaced for the first time in over thirty years because of its vulnerability to sophisticated counterfeiters.
Approximately one in thirty £1 coins in circulation today is a counterfeit.
That is why the Bank of England are introducing a new, highly secure coin on 28th March 2017 to reduce the costs of counterfeits to businesses and the taxpayer.
What do schools need to do to prepare for the new £1 coin?
All schools which handle cash will need to prepare before the new £1 coin is introduced.
The new £1 coin is very different to the old one. This means that you will need to upgrade your coin handling equipment and train staff on the features of the new coin.
Coin handling equipment includes vending machines, revaluation units, self-service checkouts, cash counting machines and any other machine that accepts £1 coins.
What to do before 28th March 2017?
If your Revaluation Unit accepts the new 10p piece released in 2012, then the coin mechanism may simply require a firmware upgrade; otherwise it will require a new mechanism.
If you have not already had your units upgraded to accommodate the new £5 Polymer note, then you may wish to reduce callout charges by having both upgrades done at the same time. Likewise, the new £10 polymer note will be released in the Summer of 2017.
We recommend that you prepare for the new £1 coin in advance. Simply click here and register your details to begin the upgrade process.
What happens during the co-circulation period?
For six months from 28th March 2017, both the current £1 coin and new £1 coin will be in circulation at the same time.
You should also make arrangements with your bank or cash in transit (CIT) provider to return the current £1 coin and new £1 coin in separate packaging. Please check with your bank for more details.
What happens at the end of the co-circulation period?
When the six-month co-circulation period ends, the round £1 coin will no longer be legal tender on 15th October 2017. You are under no obligation to accept the round £1 coin, and you should not distribute it either.
The round £1 coin can continue to be deposited into a customer's account at most high-street banks and the Post Office. Specific arrangements may vary from bank to bank, including deposit limits. Please check with your bank for more details.
At the end of the six-month co-circulation period, all your coin handling equipment should be ready to accept the new £1 coin.