ECONOMISTS at the Bank of England claim scrapping the 1p and 2p coins would not push up prices.
In March, the Chancellor Philip Hammond revealed that the government was looking into the future of cash and digital payments in his Spring Statement.
The call for evidence included the question of whether to retain 1p and 2p coins as well as the £50 note.
Arguments made against scrapping the coppers included that shops would automatically round-up prices and pushing up inflation.
Today, BoE economists challenged that argument in a blog, where they declared that the removal of coins from circulation would have "no significant impact on prices".
They claim that the popularity of pricing items ending in 99p has fallen in recent years and it now only accounts for 12 per cent of prices.
They also argue that as digital payments takes over from cash the need for small change becomes even more irrelevant.
And with just 3 per cent of purchases are made using cash in the UK, scrapping coins would not cause prices to rise.
In the Spring Statement, the government revealed that six out of every ten 1p and 2p coins are used before they drop out of circulation, mostly into jars or down the back of the sofa.
The document seemed to pave the way for the abolition of the coins but the Prime Ministers official spokesperson quickly denied the move.
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Over the past two years, the Bank of England has been rolling out new polymer £5 and £10 notes to improve the quality of the money.
Thanks to the new plastic material, the new notes are stronger, cleaner and safer, which will also make them last longer in circulation.
Although plans to roll out polymer £20 have been announced for 2020, no-one has mentioned anything about updating Britain's highest note, the £50.
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