The currency of the United Kingdom is the pound sterling (symbol £, code GBP), the oldest currency in the world still in continuous use, with some thirteen hundred years of history. The UK never adopted the euro, even when it was a member of the European Union.
A little history
Its origins go back to Anglo-Saxon times, when the kings of Mercia and Wessex minted silver pennies: 240 coins were struck from a pound of fine silver, hence the name. The £ sign comes from the L of libra, the Roman pound. For more than a thousand years the system remained medieval: a pound was worth 20 shillings and a shilling 12 pence, so a pound was 240 pence. There was also the guinea, worth 21 shillings and still used at horse auctions today, and coins with picturesque names such as the half crown or the farthing. On 15 February 1971, Decimal Day, the pound was divided into 100 pence, as it still is.
The Bank of England, founded in 1694, is the second oldest central bank in the world and issues the banknotes in England and Wales.
Notes and coins
Bank of England notes, made of polymer, come in £5, £10, £20 and £50. The front shows the monarch's portrait: since June 2024 notes featuring King Charles III have been in circulation alongside those with Elizabeth II, which remain valid. The back shows great figures of British history: Winston Churchill on the £5, the novelist Jane Austen on the £10, the painter J. M. W. Turner on the £20 and the mathematician Alan Turing on the £50.
Coins come in 1, 2, 5, 10, 20 and 50 pence and £1 and £2. The twelve-sided bimetallic pound coin was introduced in 2017 to combat forgery. Since 2023 Charles III coins have been circulating, with a new series of designs devoted to British flora and fauna.
Scottish and Northern Irish notes
A peculiarity that surprises tourists: in Scotland three commercial banks (Bank of Scotland, Royal Bank of Scotland and Clydesdale Bank) issue their own banknotes, as do some banks in Northern Ireland. They have the same value as Bank of England notes and are valid throughout the UK, but some shops in England accept them reluctantly; it is best to spend them before leaving, as they are hard to exchange abroad.
What it is worth
In recent years the pound has generally fluctuated between 1.10 and 1.20 euros. After the 2016 Brexit referendum it lost about 15% of its value, and in September 2022 it hit a record low against the dollar after Liz Truss's government's "mini-budget". For prices and the cost of living see the cost of living.
Practical tips
- The UK is one of the countries in Europe where cash is least used: contactless cards and phone payments are accepted almost everywhere, even for a few pence, and on public transport in London and many cities you pay directly by card. Some venues no longer take cash.
- It is still worth having a few pounds for markets, tips and small shops; cash machines (cashpoints) are everywhere and usually free, though your own bank may charge.
- When paying by card or withdrawing cash, always choose to pay in pounds rather than in your home currency: the conversion offered by the terminal (dynamic currency conversion) almost always uses an unfavourable rate.
- Bureaux de change at airports usually offer the worst rates.
See also the UK economy and travel tips.