Recommendation 24

Since March, the disruption caused by Covid-19 has, we were told, led to increases in demand, as many businesses and consumers hoarded coins in the early months of the 46 Qq 84, 85; C&AG’s Report, para 3.30 47 Q 88–90 48 C&AG’s Report, para 3.30 49 Qq 91, 99 50 C&AG’s Report, paras 3.3, 3.4 51 C&AG’s Report, para 3.3 52 Q 92; C&AG’s Report, paras 3.6, 3.9, 3.10, Figure 11 53 Q.92; C&AG’s Report, paras 3.4, 3.9, 3.10 14 The production and distribution of cash pandemic in the same way they hoarded notes. To meet this increased demand, from April the Mint pulled forward its manufacturing schedule for the 2020–21 financial year.54 It now expects the Treasury to ask it to manufacture new 2p coins in the next 6 months and more £2 coins within the next 3 years.55 Nevertheless, the Mint expects the increase in demand to be temporary, and that the long-term impact of the pandemic will be to exacerbate the decline in coin use.56