Over the next two years we will see the introduction of polymer banknotes and a new twelve sided £1 coin in the UK with new material, designs and security features.
Circulation
Due to enter circulation September 2016, the new £5 note will feature Winston Churchill and will be the first plastic banknote to be issued by the Bank of England. The following year, March 2017 will see the Royal Mint issue a new £1 coin, something which has been widely spoken about because of its unusual 12 sided design, which might remind those of a certain age of the old threepenny bit which was withdrawn from circulation back in 1971. Although the polymer banknotes will be released first, it seems to be the introduction of the new £1 coin, which will not be released until 2017, which has everyone in the industry talking.
The new twelve sided £1 coin
Our current £1 coin has been in circulation for over thirty years, much longer than the normal life cycle of a modern British coin. The new coin is an unusual twelve sided shape and made from two different coloured metals. The £1 will incorporate new anti-counterfeiting technology to become the most secure coin in circulation, allowing the UK to rapidly reduce the amount of fraudulent coins. The new coin will be thinner than the current at 2.8mm and will be made of nickel and brass. All businesses that handle cash will need to prepare for the introduction of a new coin as all coin handling equipment will have to be updated before March 2017. The Royal Mint have indicated a six month co-existence period before the old £1 coins are withdrawn.
UK polymer banknotes
More information is known about the new UK polymer banknotes. The first note, the new £5, will enter circulation this September and will feature Winston Churchill. (The Bank of England has announced that full design and security features will be unveiled in June.) The £10 note will be replaced the year after, again issued in polymer and will feature Jane Austin. The £20 will also be replaced in the future and it has been confirmed that this again will be a polymer note. The new polymer note range will be slightly smaller in size than our current notes, (eg. the new £5 will be 125mm x 65mm) with increased durability and enhanced security features, thereby offering more fraud protection. Polymer banknotes are manufactured from transparent plastic film, specially coated with an ink layer that enables it to carry the printed design features of banknotes. The materials allow the inclusion of ‘windows’ or clear portions in the design, which enhance protection against counterfeiting. Despite the visible material change the UK polymer banknotes will retain their overall look with a portrait of Her Majesty the Queen on the front. The Bank of England describes the polymer notes as cleaner, more secure, and more durable than paper notes, providing enhanced counterfeit resilience, and increasing the quality of notes in circulation. Polymer notes are also more environmentally friendly and last longer. In addition all three Scottish Banks (Clydesdale, Bank of Scotland and Royal Bank of Scotland) will also issue new polymer £5 notes later this year.
Note validation
In terms of note validation, polymer banknotes pose no additional issues, all ITL note validators will accept and stack as normal after a simple, free currency dataset update. Although new to us in the UK, polymer notes are already widely used in over 30 different countries worldwide including Australia and Canada. With the new notes due to be issued in September, we will ensure customers have access to currency dataset files from Friday 29th April, allowing sufficient time for all validators in the field to be updated ahead of the note entering circulation. To further simplify the process, we will create a SMART Update Tool allowing all equipment to be updated with one of our DA3 handheld programmers in minutes.
Old dipswitch NV9/NV10s
It is vital that any customers still using old dipswitch units (which became obsolete at the end of 2014) update to newer USB validators before the introduction of the new £5 polymer note. No update will be available for the original dipswitch NV9 and NV10 units.
To stay up to date with all of the latest information on the new UK notes and coins keep an eye on our website news and technical bulletins.