They are no longer legal tender, but shoppers will be able to continue using round pounds in hundreds of shops for at least another two months. Iceland, the food retailer, has announced it will accept payments in old £1 coins until 31 December.
It is not the only retailer to make such a commitment: toy shop chain The Entertainer, which has 140 stores, has said its cut-off point for spending the old coins is also New Year’s Eve.
Round pounds ceased to be legal tender at midnight on 15 October after the introduction this year of a 12-sided coin. Many retailers refused to accept the old ones after that date, but others said they would continue to take them for a further week or two.
Iceland’s original acceptance deadline was 31 October, but it will now take round pounds at all Iceland and The Food Warehouse stores until the end of the year.
The retailer’s move is notable as it has more than 890 stores in the UK. The decision may reflect the fact that, according to the Royal Mint on Wednesday, an estimated 400m to 450m old pounds are still in circulation, some of which will be in piggy banks, down the backs of sofas and in car glovebox compartments, despite the widely publicised deadline.
Tarsem Dhaliwal, Iceland’s group managing director, said: “We try to help our customers in any way we can, and the statistics tell us that very many people must still have old pound coins stashed away in their homes or cars.
“So we are happy to save them the trouble of changing these old coins at a bank by allowing them to spend round pounds in our stores until the end of the year.”
However, it is not clear whether the Royal Mint entirely approves of such decisions. In what appeared to be a slightly brusque statement, it said: “Businesses told us they wanted certainty on a cut-off date for the old pound coin, which is why we introduced the October 15 deadline.
“While the majority of firms tell us they are ready, the small minority who choose to keep accepting the old coin will have to make their own arrangements with their banks.”
Some high street banks will take old £1 coins as deposits into bank accounts, but they have different policies on how long they will continue do so and whether they will exchange old coins for new. The Royal Mint has said it is entirely up to individual banks.
The new 12-sided, bi-metal coin came into circulation on 28 March as part of efforts to cut back on counterfeits. The old pound, which had been in circulation since 1983, was one of the most counterfeited coins in the world.
