NEW 5p and 10p coins are proving costly to local councils.
Kirklees Council will have to spend around £40,000 on changing their pay and display parking machines to cope with forthcoming coinage changes.
And it’s costing Calderdale Council £46,000 to purchase 215 new coin mechanisms and £2,000 to fit them.
From January 1, 2012 the Royal Mint will introduce new 5p and 10p coins minted using cheaper nickel-plated steel instead of cupro-nickel (75% copper, 25% nickel).
It will make the coins 11% thicker and around one million coin handling mechanisms in the country will need to be replaced or recalibrated.
A spokesman for Kirklees Council said: “Parking pay and display machines have already started to be converted to accept the new coinage. It will be a phased programme, with the most frequently used machines – in key town centre locations – being converted first.
“Many of Huddersfield’s parking machines do not accept 5p coins, but do allow 10p coins to be used. It will take around 18 months to make all the changes as the new coins are phased in.
“We have been preparing for the change since the Treasury announced that new coins would be introduced. We expect it to cost around £40,000. To complement the conversion programme, we are also looking to bring in payment by mobile phone early in the new year.”
The Treasury predict the new coins will save the government up to £8m every year by using the cheaper metal, but the Local Government Association says it is likely to cost local authorities nationally around £5.5m to buy and install new parking machines and mechanisms to cope with the new coins.
