Currency

The currency of the United Kingdom is the Pound Sterling (£).  In colloquial speech, the pound is also called "quid".  There are 100 Pence (p) in the pound.  The word "pence" is usually just abbreviated to "p" in speech and writing.

Coins (images from Royal Mint website)

All coins have a portrait of the reigning monarch, Queen Elizabeth, on one side (colloquially, the 'heads') . The £1 coins have emblems representing the nations of England, Scotland and Wales on the obverse side (colloquially, the 'tails') and the legends "NEMO ME IMPUNE LACESSIT", "DECUS ET TUTAMEN" and "PLEIDIOL WYF I'M GWLAD", respectively around the milled edge.  50p and £2 coins have been issued with many different commemorative and other designs, but the alternative designs are just as well accepted by shops and are worth no more or less.

When handling coins, be careful not to dismiss the small ones as unimportant—some small coins are worth much more than larger ones.  For example, the one pound coin is significantly smaller than the 50 pence piece, and is about the same size as the one penny piece!

Change of coin design

On 2 April 2008, The Royal Mint announced a major change in the appearance of the UK's coinage. All coins, with the exception of the £2 coin, will have a new obverse side. It is the first wholesale change in the UK's currency since decimalisation in 1968. Older coins will remain in circulation until they naturally cease to be legal tender (around 30 years) or if the UK converts to the Euro.

Banknotes

Banknotes are issued in England and Wales by the Bank of England. In Scotland, promissory banknotes are issued by the Bank of Scotland, the Royal Bank of Scotland and the Clydesdale Bank and in Northern Ireland, by the  Bank of Ireland, First Trust Bank, Northern Bank and Ulster Bank. Banknotes are issued to £5, £10, £20 and £50 by the Bank of England, with some Scottish banks also issuing £1 and £100 notes.

The only legal tender currency in the UK is that issued from the Bank of England, but businesses generally accept the Scottish & Northern Irish notes. Technically, Scotland has had no legal tender since 1707 and all notes are promissory, but this is a mere aside.

High-value Scottish notes (£50 & £100) are mostly refused by English businesses (for security and forgery reasons). Northern Irish money is rarely seen in the mainland UK, but is still generally accepted. £1 Scottish notes, although becoming quite rare, are not accepted outside Scotland.

English notes are more universally accepted, though the £50 note is rarely seen, as it is primarily a banking note, and is commonly refused by retailers and service providers, due to security and forgery risks, as well as a reluctance to part with change.

It is also common in northern Scotland to find signs stating that English banknotes larger than £10 will be refused due to the number of forged English £20 notes in circulation. This can be problematic if you are in the Highlands, miles from an ATM, with only a stash of £20 English notes in your wallet.

As a general rule use scottish banknotes in Scotland, english banknotes in England, and anything in Northern Ireland. The easiest way to avoid problems is to take money from the ATM (cash machine) in the country you want to use it in. Treat them as seperate countries, which is what the locals do anyway.

The Channel Islands and the Isle of Man also issue their own banknotes, but these are  NOT accepted on the UK mainland. It is imperative you exchange these before return to the UK mainland or back home.

Rule of thumb: low denomination (£20 and below, though not £1 in England) and the note printed with 'pounds sterling' will be accepted 99 times from 100. Spend or change all Scottish and Northern Irish notes to English before departure from the UK as bureaux de change back at home will not accept these for exchange purposes, due to legal tender issues previously mentioned. 

Bank of England notes (images from Bank of England website)

£5 note - all Bank of England notes have the same front design in the appropriate colour.

This is the new design £20 note, the old design is still in circulation, but is becoming less common.

The £50 is not widely accepted, but is in circulation. Retailers have the right to not accept this note, so it is advised that you use this for currency exchange and banking purposes only. 

Bank of Scotland sample design (images of Scottish notes from the Scottish Clearing Banks webpage)

Royal Bank of Scotland sample design

Clydesdale Bank sample design

If you are planning a trip to Ireland or the UK's closest mainland neighbours, note that the currency is the Euro, €.  Euros can be obtained from any bureaux de change, all High Street branches charge no commission on exchange, but airport branches levy a 2% service charge and generally have a lower rate of exchange.

NB: A minority of High Street shops already accept the Euro as payment, and all major UK banks provide a Euro-based current account.

Obtaining UK money

Obtaining money in the UK is quite easy. ATMs tend to cluster around stations and main shopping streets. In more rural areas, cash machines are rarer and tend to be located near supermarkets or at the odd bank - if it's open, you can always get cash over the counter.  Post Offices can give you cash over the counter against a card, but some lightly used ones may refuse, simply because they haven't got enough cash. Beware of cash machines inside shops and bars as these can charge around £1 per transaction (and in some cases as much as £3!).

If you are using your debit card and are accustomed to entering your PIN alphabetically, make sure that you also know its numeric equivalent.  Most UK cashpoints have only a numeric keypad. You need to know that DAZED is really 32933 or the queue of people waiting for cash behind you will grow really impatient!

BE WARNED! Before you use a cash machine, always check that it has not been tampered with. Always cover the keypad with your other hand, while you input your number (this will prevent people behind you and any devices fitted with cameras seeing your number). If you think a money machine has been tampered with, DO NOT USE IT!

Credit Cards 

Visa and Mastercard are also widely accepted, but be warned that there may be a 1% - 3% transaction fee, depending on the card issuer, on every transaction. You’ll want to find out from your credit card company exactly what their fees are.  It is also a good idea to let your bank and credit card company know you will be using the cards overseas so they don’t suspect "unusual activity" and put a hold on your account.

Businesses (outside the big chain stores and cities) accepting debit and credit cards are also on the rise. Since the advent of chip-and-PIN cards and Internet banking, almost every major retailer and food outlet accepts payment by card.  Smaller shops only take cards when you spend more than a certain amount (usually £4-£6) or will add a nominal surcharge.  Some independent service companies (e.g. lawyers, estate agents) won't accept credit cards either.

One of the growing crimes in the UK is credit theft (where people steal your credit card details through the use of scanners attached to money machines, then use your details illegally and without your knowledge).  To alleviate this problem, chip & PIN cards were widely implemented in February 2006.  These cards have "smart cards" inserted in them that remember a PIN that you have to enter when making purchases, rather than simply signing a receipt.  Visitors from countries not yet using chip and PIN will have their card swiped and sign in the usual way. For more information, visit the Chip & PIN page.

Also, be sure you never discard credit card receipts from purchases in rubbish bins. It's still not completely unheard of for these receipts to contain your complete credit card details (including your credit card number and expiry date), though normally, the receipts will only show the last four digits of your card number. Your safest bet is to securely destroy these receipts back in your hotel room, or better still, retain the receipts and take them home with you so you can match your purchases up with what you have been charged on your next credit card or bank statement.

Cash Back

Cash back is a system where by you can get cash when purchasing items using a UK issued debit card. This is usually restricted to a maximum of £50. For example you spend £15 on goods and ask for £20 cash back. Your total bill will be for £35 and you will be handed your goods and £20. This system mainly operates in supermarkets where it is quite usual to be asked if you want cash back. However, other shops offer it as well. If you are unsure, ask. Do not rely on being able to get money this way, as not all shops operate this system.

Useful Info

Here is a listing of many of the major banks, building societies and credit unions controlling and providing High Street banking facilities around the UK.

• Abbey
• Allied Irish Bank
• American Express (AMEX)
• Bank of England
• Bank of Ireland
• Barclays (UK)
• Citibank
• Clydesdale Bank
• First Trust Bank
• Halifax Bank of Scotland (HBOS)
• HSBC 
• Lloyds TSB
• Nationwide
• NatWest
• Northern Bank (Northern Ireland)
• Northern Rock
• Post Office
• RBS - Royal Bank of Scotland
• Ulster Bank