The humble penny, a coin many Americans barely notice, is on its way out in the U.S., and it’s got people in the UK wondering if their 1p coin is next. The U.S. Treasury will stop minting pennies in 2026 because it costs four cents to make each one, a move expected to save $56 million a year. Across the Atlantic, the UK faces similar issues, with 1p and 2p coins costing more to produce than they’re worth. Could the UK follow the U.S. and ditch its smallest coins? Let’s dive into what’s happening and why it matters.
Why the U.S. Is Done with Pennies
In 2024, the U.S. Mint lost $85 million making 3.2 billion pennies, each costing 3.69 cents due to pricey zinc and copper. With digital payments like cards and apps now dominating 68% of U.S. transactions in 2023 were cashless pennies often end up in jars, not wallets. The U.S. decision, backed by President Donald Trump and Elon Musk’s efficiency push, aims to cut waste. Canada and Australia already scrapped their low-value coins, and the U.S. expects to save big by halting penny production while letting the 114 billion already in circulation fade out.
The UK’s Penny Problem
The UK’s 1p and 2p coins are in a similar bind. The Royal Mint spends about 1.3p to make each 1p coin and 2.1p for each 2p, losing millions annually. With 11 billion 1p coins in circulation, they’re common but rarely used, piling up in homes or charity boxes. A 2019 HM Treasury review considered scrapping them, but no action was taken due to public love for the coins. Now, with the U.S. move making headlines, posts on X show Brits debating whether it’s time to say goodbye to small change.
How Life Could Change Without Small Coins
If the UK ditches 1p and 2p coins, cash payments would likely round to the nearest 5p, like this:
| Purchase Amount | Rounded To |
|---|---|
| £4.01 or £4.02 | £4.00 |
| £4.03 or £4.04 | £4.05 |
Canada’s experience shows rounding has little impact on prices, averaging less than a penny per transaction. Digital payments, which make up 70% of UK transactions, wouldn’t be affected. Still, some worry about small price hikes for cash users, especially at small shops. Businesses might tweak prices to avoid rounding up, keeping costs fair.
Tradition vs. Progress
Pennies and pence carry more than just value they’re part of culture. In the UK, “penny for your thoughts” and wishing wells give 1p coins sentimental weight. Charities, like those with donation jars, rely on small change, though apps like JustGiving are gaining ground. On X, some Brits argue keeping 1p coins preserves tradition, while others call them a hassle. The U.S. debate echoes this, with some mourning the penny’s nostalgic charm and others cheering the cost savings.
What’s Next for Small Change?
In the U.S., pennies remain legal tender, so the 114 billion out there will linger for decades. The UK hasn’t decided on 1p and 2p coins, but pressure is growing. The Royal Mint could save £20 million a year by stopping production, and with inflation making small coins less useful, change feels likely. For now, check your piggy banks—rare coins like a 1983 “New Pence” 2p could be worth hundreds. As both nations lean toward cashless futures, the days of picking up a penny or 1p for luck might soon be history.