1p and 2p coins will not be phased out, the Treasury said, despite it not ordering any new copper coins from the Royal Mint this year.
"We are not scrapping 1p or 2p coins," a Treasury spokesperson revealed.
No new orders of the coins led to speculation that the two lowest denominations of currency would be scrapped in the future.
However, the Treasury said the reason for the lack of orders was because there were already enough 1p and 2p coins in circulation to meet the current demand.
“We are confident there are enough coins in the system without the need to order more this year," the spokesperson added.
Currently, some 27 billion coins are in circulation across the UK, supporting the decision to pause orders.
This move aligns with previous instances where coin production was halted, including several years in the 1970s, 1980s, and again in 2018.
Industry research by UKFinance on Wednesday revealed that cash remains the second most popular payment method in the UK.
Despite a decline in overall cash usage, 1.5 million or 2.6% of the UK primarily used the British currency in 2023, up from 1.7% of the population in 2022.
However, cash accounted for 12% of all payments in the last calendar year, down from 14% in 2022.