New 12-sided £1 coin replaces round pound from March 28

The government has launched a campaign to encourage the public to return round £1 coins after it was announced that the new 12-sided £1 coin will enter circulation on March 28.

The Treasury, which estimates that £1 coins’ account for almost a third of £1.3 billion of coins stored in saving jars across the UK, has confirmed that the old-style coin will be defunct from October 15.

The Royal Mint will make more than 1.5 billion of the new coins, which have been designed based on the threepenny bit that went out of circulation in 1971. It is claimed that the new coin, the first of its kind since 1983, will be the most secure in the world with security features including a hologram.

David Gauke, Chief Secretary to the Treasury, said: “28 March should be an important date in everybody’s calendar – as we will have a new quid on the block. Our message is clear: if you have a round £1 coin you need to spend it or return it to your bank before 15 October.”

Helen Dickinson, Chief Executive of the British Retail Consortium, believes businesses will be ready: “While there will be a natural transition period where some vending systems may only be able to accept the existing coin, our industry is committed to ensuring we’re fully prepared ahead of the launch.”

About 40% of vending and other cash-receiving machines must be upgraded as part of the launch. The British Parking Association says each meter change will cost £90-£130 for the simplest software upgrade, but considerably more if they are to issue change. Meanwhile, The Royal Mint has estimated the cost of changing all the UK’s machines at £15 to £20 million.