Decimalisation: Britain’s “new pence” turn 50 years old

In 1971 the UK adopted a decimal currency. The shift was widely thought to be a step towards joining the Common Market, but there was more to it than that, says Max King.

Bill “Lord” Fiske, chairman of the Decimal Currency Board
The shilling and florin coins remained in use until 1990
(Image credit: © Popperfoto via Getty Images/Getty Images)

15 February marks the 50th anniversary of the day when, after 150 years of proposals, debate and Royal Commissions, Britain finally adopted a decimal currency. The old system of 12 pennies to the shilling and 20 shillings to the pound was replaced by a simple 100 “new pence” to the same old pound. Only a few nostalgic diehards disapproved.

It was widely thought that decimalisation was a precondition of Britain joining what was then called the European Economic Community (EEC) two years later. In fact, decimalisation had been progressing around the world since it was first adopted by the newly formed United States in 1786 and France in 1795. Canada adopted the dollar (a word derived from the central European thaler) upon self-government in 1867.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.