‘Wasteful’ pennies scrapped in US – could it happen to UK’s 1p too?

Pennies coins money; Shutterstock ID 1295514442; purchase_order: -; job: -; client: -; other: - — The American one-cent coin is to become a thing of the past (Picture: Shutterstock/Brandon Pack)

One cent coins are to be consigned to American history, after the cost of making them became more than they were worth as currency.

Production of the 232-year-old loose change will cease next year, the Treasury Department has confirmed.

The coins, commonly known as pennies, were called ‘wasteful’ by Donald Trump in February when he told Treasury Secretary Scott Bessent to stop minting them.

Elon Musk’s unofficial Department of Government Efficiency (Doge) has also highlighted the cost of producing the shrapnel.

The bill has risen from 1.3 cents to 3.69 cents per coin over the past decade, according to the Treasury.

The death knell for the coin follows other countries ditching similar currency in an increasingly cashless world.

Close-up of a heap of US pennies — US pennies have reduced use in the age of cashless payments (Picture: Getty Images)

In 2012, Canada ended its one-cent coin, citing the minting costs and its falling purchasing power due to higher prices.

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The UK did not mint any new coins last year after officials said there were already enough in circulation amid the declining use of cash.

One and 2p coins are not being scrapped but there have been several years when no 2p coins were produced, the Treasury said.

Discussions of scrapping the UK’s pennies have been going on for years, although not with the same urgency as across the pond.

In 2019, there was speculation that the Treasury may be paving the way for the end of 1p and 2p coins after inviting comments on the mix of coins in circulation.

But the idea wasn’t too popular, with the Federation of Small Businesses (FSB) national chairman Mike Cherry saying at the time: ‘Keeping 1p and 2p coins in circulation is the right call. The freedom to use pennies is still important to a lot of small firms.

‘For many, being able to charge prices that end in 99p rather than a round pound figure can be enough to tip intrigue into a sale, particularly where lower-value items are concerned.’

The US move brings to an end a story which began in 1793 when the penny was one of the first coins to be made by the Mint.

A woman with flowing hair symbolising liberty featured on the initial 60 years of the design.

Ceasing production is predicted to deliver an immediate annual saving of $56m (£42m) in reduced material costs, according to the US Mint.

ArrowMORE: Britain is becoming a cashless society – but what are the pros and cons?

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