The UK's Currency: Pound Sterling

The currency of the United Kingdom is the pound sterling, written £ and abbreviated GBP. One pound is divided into 100 pence (singular: penny). The UK has not joined the euro and has no plans to do so. Coins in circulation are 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2; banknotes are £5, £10, £20 and £50.

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Banknotes are issued by the Bank of England in England and Wales. In Scotland and Northern Ireland, several authorised commercial banks (such as the Royal Bank of Scotland, Bank of Scotland, Clydesdale, Bank of Ireland, Danske and Ulster Bank) also issue their own banknotes. These are legal currency throughout the UK, although shops are not legally required to accept them.

The exam may ask the name of the UK currency, how many pence are in a pound, or whether Scottish banknotes are valid in England.

Test yourself on this topic

These questions from the official-format question bank cover the same material. Tap any question to see the correct answer and a short explanation.

1. Northern Ireland and Scotland have their own banknotes valid everywhere in the UK
2. Northern Ireland and Scotland have their own banknotes, which are valid everywhere in the UK
3. Northern Ireland and Scotland have their own banknotes, which are valid everywhere in the UK.
4. Northern Ireland and Scotland have their own banknotes.
5. The small claims procedure is used for claims of less than ______ in Scotland and Northern Ireland
6. It is illegal for shops and businesses to not accept the banknotes of Northern Ireland and Scotland

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