In England, shops to accept demonetised £1 coins

Thousands of shops in the UK will ignore the Royal Mint’s deadline to stop accepting old £1 coins, despite warnings that it could create chaos, The Telegraph reported.

A trade association representing 170,000 small shops has advised members to continue taking the round £1 coins, which ceased to be legal tender on Sunday.

Poundland, the discount store, has also said it will continue to let customers use the old coins, of which 500 million remain in circulation, to pay for items beyond the cut-off point. Bosses described the move as a “no-brainer”.

The Royal Mint and the Treasury are understood to have told businesses that they want a “clean break” from the round pound to avoid potential chaos being created by some shops continuing to accept them as payment. Officials are worried that a “messy” transitional phase would lead to customers getting confused about which coins they could use, as well as creating hassle for banks which would have to separate old and new coins.

The report said the new rules will prevent shops handing out old £1 coins as change and will give shops the right to refuse them as payment. However, there is no rule preventing shops accepting the coins beyond the end of the deadline.