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| Version 0 | Version 1 |
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| The penny coin: Should we follow Ireland and phase it out? | The penny coin: Should we follow Ireland and phase it out? |
| (35 minutes later) | |
| You know that pot on your bedside table? Go and empty it, and you will find, on average, 173 penny coins. | You know that pot on your bedside table? Go and empty it, and you will find, on average, 173 penny coins. |
| The Royal Mint says there are 11.3bn of them "in circulation", but self-evidently most of them are not. | The Royal Mint says there are 11.3bn of them "in circulation", but self-evidently most of them are not. |
| Sock drawers, ash trays and car glove-boxes are the recipients of coins that may never again be used for their minted purpose. | |
| One reason is that a 1p coin is now worth less than the 1/2p was when it was abolished in 1984. | One reason is that a 1p coin is now worth less than the 1/2p was when it was abolished in 1984. |
| A penny back then was worth three times what it is today, thanks to the effect of inflation. | A penny back then was worth three times what it is today, thanks to the effect of inflation. |
| So should we rescue trouser pockets everywhere, by following the example of at least ten other western countries, and phase out the British penny? | So should we rescue trouser pockets everywhere, by following the example of at least ten other western countries, and phase out the British penny? |
| 'Better all round' | 'Better all round' |
| In parts of Europe it is already increasingly difficult to spend 1cent and 2c coins. | In parts of Europe it is already increasingly difficult to spend 1cent and 2c coins. |
| Several smaller countries now practise "rounding" to the nearest 5c, so that prices ending in a 1,2,6 or 7 get rounded down, with prices ending 3,4,8 or 9 rounded up. | |
| Six European countries do this, including the Netherlands, Belgium and Finland. | Six European countries do this, including the Netherlands, Belgium and Finland. |
| The latest of these was Ireland, which introduced cash rounding in October last year. | The latest of these was Ireland, which introduced cash rounding in October last year. |
| The central bank encourages retailers to take part in the scheme, although it is voluntary for both shops and customers. | The central bank encourages retailers to take part in the scheme, although it is voluntary for both shops and customers. |
| Shoppers are made aware by stickers near the tills that say "Better all Round". | Shoppers are made aware by stickers near the tills that say "Better all Round". |
| The smaller denominations can still be used in electronic transactions. | The smaller denominations can still be used in electronic transactions. |
| Inflation | Inflation |
| However, Irish consumer groups have complained that retailers have used the opportunity to increase prices. | |
| For example, some are said to have moved prices up from 97c to 98c, so they will get rounded up, rather than rounded down. | For example, some are said to have moved prices up from 97c to 98c, so they will get rounded up, rather than rounded down. |
| Dermott Jewell, policy adviser at the Consumers' Association of Ireland, says some shops are also rounding up automatically, instead of giving the customer a choice. | Dermott Jewell, policy adviser at the Consumers' Association of Ireland, says some shops are also rounding up automatically, instead of giving the customer a choice. |
| "As a result it's the consumer who needs to say, 'hang on, I only want to pay the quoted price'," he told the BBC. | "As a result it's the consumer who needs to say, 'hang on, I only want to pay the quoted price'," he told the BBC. |
| The Central Bank of Ireland decreed that rounding should be applied to the total bill, rather than each individual item. It says that should curtail any inflationary effects. | The Central Bank of Ireland decreed that rounding should be applied to the total bill, rather than each individual item. It says that should curtail any inflationary effects. |
| But there have been instances of retailers rounding up individual items instead. | But there have been instances of retailers rounding up individual items instead. |
| "The idea is not for shops to make a profit. Some stores are fleecing people," says Mr Jewell. | "The idea is not for shops to make a profit. Some stores are fleecing people," says Mr Jewell. |
| However the Consumers' Association still supports the principle of phasing out the smaller coins, which it says "cost ridiculous amounts". | However the Consumers' Association still supports the principle of phasing out the smaller coins, which it says "cost ridiculous amounts". |
| Elsewhere Sweden, Denmark and Hungary have all introduced rounding in some form. | Elsewhere Sweden, Denmark and Hungary have all introduced rounding in some form. |
| Australia, Canada and New Zealand have gone further, and phased out their smallest coins altogether. | Australia, Canada and New Zealand have gone further, and phased out their smallest coins altogether. |
| Counting pennies | Counting pennies |
| So what about the UK? | So what about the UK? |
| To canvas opinion, we went to a street that is better known for its Beatles, rather than its coinage, connection. | To canvas opinion, we went to a street that is better known for its Beatles, rather than its coinage, connection. |
| On the way there, the taxi driver was in little doubt. | On the way there, the taxi driver was in little doubt. |
| "I think we should get rid of them," says Phil Mitchell. "I used to throw them out of the window. They're useless, aren't they?" | "I think we should get rid of them," says Phil Mitchell. "I used to throw them out of the window. They're useless, aren't they?" |
| On Penny Lane itself, Debbie Davies, who owns a hairdressing salon, says she can't be bothered to count pennies, let alone take them to the bank. | On Penny Lane itself, Debbie Davies, who owns a hairdressing salon, says she can't be bothered to count pennies, let alone take them to the bank. |
| "The only down side is that £1.99 sounds cheaper than £2.00. Customers might not like it, so businesses might not like it." | "The only down side is that £1.99 sounds cheaper than £2.00. Customers might not like it, so businesses might not like it." |
| Further down is a firm of chartered accountants. | Further down is a firm of chartered accountants. |
| As a business that specialises in counting pennies, surely they would like to keep the coin. | As a business that specialises in counting pennies, surely they would like to keep the coin. |
| But they are not keen. | But they are not keen. |
| "I don't think anyone would miss it," says John Paul McMullen, who incidentally denies being named after the Lennon-McCartney duo. | "I don't think anyone would miss it," says John Paul McMullen, who incidentally denies being named after the Lennon-McCartney duo. |
| "I begrudge getting a penny. It goes into my car ash tray, until I go a penny over on petrol. Then it comes out." | "I begrudge getting a penny. It goes into my car ash tray, until I go a penny over on petrol. Then it comes out." |
| Public Reaction | Public Reaction |
| The Royal Mint won't reveal how much it costs to make a penny - nor how much we would save by stopping production. | The Royal Mint won't reveal how much it costs to make a penny - nor how much we would save by stopping production. |
| But it does say that it costs less than 1p to produce each coin. | But it does say that it costs less than 1p to produce each coin. |
| It still makes half a billion pennies a year, and claims they are popular with the public - an assertion which is in its own commercial interest, of course. | |
| The Treasury - which is responsible for coinage policy - says there are no plans to withdraw the penny. | The Treasury - which is responsible for coinage policy - says there are no plans to withdraw the penny. |
| "Any decision to withdraw a denomination would need to be carefully considered, not only in terms of potential cost saving, but also in terms of public reaction and wider implications," a spokesperson told the BBC. | "Any decision to withdraw a denomination would need to be carefully considered, not only in terms of potential cost saving, but also in terms of public reaction and wider implications," a spokesperson told the BBC. |
| One of those wider implications would be the impact on inflation. | One of those wider implications would be the impact on inflation. |
| 'British' | 'British' |
| However, back on Penny Lane the public reaction looks rather different from what the Treasury may be anticipating. | |
| Sharon Goldman, who runs the bakery, wants to keep the penny. | Sharon Goldman, who runs the bakery, wants to keep the penny. |
| But her prices, which are already rounded up to the nearest 5 or 10p, suggest otherwise. | But her prices, which are already rounded up to the nearest 5 or 10p, suggest otherwise. |
| "That makes it easier for customers," she says. | "That makes it easier for customers," she says. |
| At the Londis convenience store, many shoppers no longer wait to collect smaller coins. | At the Londis convenience store, many shoppers no longer wait to collect smaller coins. |
| "That guy there, he bought a 29p drink, but he didn't wait for his change," says manager Karen Rimmer. "The youngsters don't wait." | "That guy there, he bought a 29p drink, but he didn't wait for his change," says manager Karen Rimmer. "The youngsters don't wait." |
| Yet young customer Amy Nelligan begged to differ. | Yet young customer Amy Nelligan begged to differ. |
| "I love pennies. I just like to hold them. And there's something very British about them." | "I love pennies. I just like to hold them. And there's something very British about them." |
| Like all of us, her attachment to the penny appears to be more sentimental than practical. | Like all of us, her attachment to the penny appears to be more sentimental than practical. |
| And that in itself may well underline the case for abolition. | And that in itself may well underline the case for abolition. |