The government is urging people to either spend or turn in to their banks the current £1 coin before it loses its legal tender status on 15 October 2017, with some of the returned coins being melted down and reused to make the new coin.

The current £1 coin is being replaced for the first time in over thirty years because it has become vulnerable to counterfeiters with approximately one in 30 £1 coins in circulation being a counterfeit.

Gauke said: ‘March 28 should be an important date in everybody’s calendar this year - as we will have a new quid on the block. This is a historic moment as it’s the first time we’ve introduced a new £1 coin since 1983, and this one will be harder to counterfeit than ever before.

‘Our message is clear: if you have a round one pound coin sitting at home or in your wallet, you need to spend it or return it to your bank before 15 October.’

The new £1 coin has been designed to make it more difficult to counterfeit, due to its size and material. It will be made of two metals, the outer ring is gold coloured (nickel-brass) and the inner ring is silver coloured (nickel-plated alloy) and has a hidden high security feature to prevent it from counterfeiting.

The new coin’s design is based on the design of the old 12-sided three-penny bit, a popular British coin that went out of circulation in 1971.

Businesses have already begun the process and have contacted suppliers to ensure that their coin handling equipment such as vending machines and self-service tills will be ready to accept the new coin by the October deadline.

Manufacturers of coin validation equipment are now preparing upgrades for the wide variety of equipment that will accept and dispense the new 12-sided £1 coin. The Royal Mint has provided these manufacturers with trial pieces of the new coin for equipment testing and development processes.

Association of Convenience Stories Chief Executive, James Lowman, said: ‘The introduction of a new £1 coin is a positive step toward taking counterfeit coins out of circulation. It is essential that retailers are prepared for the introduction of the new £1 coin, as the transition is likely to affect a number of areas of their business especially if they have coin operated machines such as self-service tills in store.

‘We encourage retailers to make use of the guidance provided by the Royal Mint and to speak to their suppliers of coin operated machines as soon as possible to make the transition as smooth as possible for consumers.’

Information on the new 12-sided £1 coin is available here.