£6.6bn in historic UK banknotes and coins not yet cashed in

A substantial quantity of obsolete money in the United Kingdom continues to go unexchanged, with nearly £6.6 billion in old banknotes and coins still not returned to the Bank of England and Royal Mint. Despite various public initiatives encouraging people and companies to swap outdated currency, many of these notes and coins remain in use—or have been completely overlooked.

The graphic comprises former paper bills that have been substituted by more secure polymer versions, as well as round pound coins that ceased to be legal tender a few years ago. Recent statistics indicate that approximately £4.4 billion of the whole amount consists of old paper notes, whereas the additional £2.2 billion is in the form of obsolete £1 coins.

The switch to polymer banknotes started in 2016 with the launch of the plastic £5 note, succeeded by updated editions of the £10, £20, and £50 notes. The withdrawal of paper notes was necessary because of issues with longevity and the imperative to tackle counterfeiting with enhanced security measures. Nevertheless, the paper notes have not entirely vanished from wallets, drawers, or even containers stored in people’s homes. Numerous people might be unaware that these notes are no longer valid for transactions.

Although they can no longer be used in shops or for everyday payments, the Bank of England has confirmed that all withdrawn banknotes can still be exchanged at face value—either by post or in person—without a deadline. The Bank also allows some high-street banks and building societies to process these exchanges, but practices vary by institution and depend on whether the person holds an account with the bank.

A similar situation exists with the £1 coin. The Royal Mint replaced the original round pound in 2017 with a 12-sided version featuring enhanced security features. The older coins were formally demonetized in October of that year, yet millions remain unreturned. Although most major retailers and banks stopped accepting the round pound shortly after the deadline, the Royal Mint continues to accept them via specific deposit services.

The causes for this large amount of currency not being returned are diverse. Certain individuals might keep older banknotes or coins as keepsakes, while others could have accidentally lost track of them. It’s also frequent for tourists and people living outside the UK to keep minor amounts of British currency without realizing that these notes or coins are no longer in circulation. Additionally, overlooked savings tucked away in piggy banks, safes, or drawers may remain undetected for extended periods.

The issue reflects a broader behavioral pattern among the public, where changes in currency design often lead to a lag in adoption. When new designs are introduced, many people don’t immediately rush to exchange the old versions, especially if the amounts involved are relatively small or stored away for long-term savings. Over time, these accumulated amounts become part of the larger total of unredeemed currency.

From a financial perspective, unreturned notes and coins can represent a liability on the central bank’s balance sheet. While the physical money is no longer in active circulation, the Bank of England and Royal Mint must still account for it until it is formally redeemed. In essence, the value of this unredeemed currency remains as a claim that could potentially be exercised by the public at any time.

For collectors, some of these older banknotes and coins may now hold value beyond their face amount. Rare editions or error prints—such as early polymer notes with printing anomalies or certain commemorative coins—can fetch higher prices in the numismatic market. However, for the vast majority of outdated currency still held by the public, the main value lies in their exchangeability rather than any collectible worth.

Both the Bank of England and Royal Mint keep urging the public to return or trade in old currency when discovered. This guarantees that people can recover the full face value of the money while also supporting a cleaner and more efficient currency system. Public awareness initiatives have featured online campaigns, details provided by financial institutions, and advice from consumer advocacy organizations.

For those in possession of old banknotes, the Bank of England offers a postal service allowing individuals to send in their notes with a completed application form. Exchanged amounts are typically refunded via cheque or bank transfer. Similarly, the Royal Mint provides information on how to return old £1 coins through deposit accounts or donation schemes.

Ultimately, the ongoing existence of old currency highlights the varied financial practices of the public and the lasting difficulty of updating a country’s cash infrastructure. With the rise of digital transactions and the decrease in tangible money usage, the dynamics of cash in circulation could hasten. Still, billions in obsolete coins and bills remain unutilized, silently awaiting exchange—assuming they are recalled.