New £1 coin is still five months away but after £5 note chaos businesses are warned to start preparing now
THE new £1 coin is still five months from entering circulation but the Government has warned businesses to start preparing now.
Over 1.5billion coins will be produced by the Royal Mint ahead of its introduction in March next year.
However, there are fears that the introduction might cause bigger problems for retailers as they have to accept both versions of the coin for just over six months, before the old one is phased out.
In a bid to help retailers prepare for this the government has launched a new website - .
David Gauke, chief secretary to the Treasury, said: "The pound as we know it will not be round for much longer.
"The introduction of this new £1 coin will be a highly significant event and we are working with the Royal Mint to ensure key industries are ready and to ensure a smooth transition."
Some of the measures businesses are being advised to put in place include adapting or upgrading equipment so they are able to handle the new coin, training their staff on the features of the new £1 coin and making arrangements with their bank to return the current and new coins in separate packaging.
Adam Lawrence, chief executive of the Royal Mint, said: "We would encourage business owners to visit the website as soon as possible to find out how the new £1 coin could affect their business and what steps they need to take to prepare for the launch of the coin in March 2017."
The new coin will have 12 sides and is made out of two metals. The outer ring is gold coloured nickel-brass and the inner ring is silver coloured, nickel-plated alloy.
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It is being replaced for the first time in over thirty years to make it harder to counterfeit. At the moment, one in thirty £1 coins are fake.
New security features include a hologram-like image that changes from a £ symbol to the number 1 when the coin is seen from different angles.
The new polymer £5 note with Winston Churchill on it was launched in September this year.
It were designed to be more durable but this has led to thousands of people attempting to destroy them - by tearing, ironing, using an eraser and even putting them in tumble dryers.
Now some shops have started refusing to accept notes if they have been severely damaged.
While a new £10 note, which will feature author Jane Austen, will launch next summer and a £20 note by 2020.
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