The Isle of Man to continue to circulate low value coins

The consultation received more than 1,000 responses

Low value Manx coins will remain in circulation after a consultation raised concerns over their withdrawal.

A system of rounding transactions to the nearest 10p will not progress and 1p, 2p and 5p coins will not be withdrawn after the feedback.

Respondents voiced concerns that the changes could discriminate against poor people and those who preferred cash.

But the Treasury said production and storage costs for 1p or 2p coins meant no more would be minted.

Residents, retailers, the wider business community and local authorities made up the 1,050 respondents to the seven-week survey.

When asked if they agreed that 1p, 2p and 5p coins "no longer have any real purchasing power" 45% said yes but 55% disagreed.

'Key concern'

Some expressed concerns the proposals would discriminate against poor people, vulnerable people, and those who prefer to use cash, and could lead to inflation with retailers rounding up to the nearest 10p.

But others felt "change was inevitable" and the coins had "no value".

Treasury Minister Alex Allinson said issues facing charities had also been raised "as a key concern" in the consultation "as so many rely on donations of loose change, which people tend not to carry these days".

He encouraged charities to consider modernising their "collection strategy" through investment in mobile card readers.

While a compulsory system of rounding cash transactions would not be explored further, Dr Allinson also said businesses should plan "on a voluntary basis" for when the number of smaller coins in circulation falls to a point where rounding to the nearest 5p would be required.

While the UK government has made no commitment to the withdrawal of low value coins, if it were to do so, the Isle of Man would follow suit, a government spokesman said.

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