In January 1981 it was announced that two new coins would be introduced into the British currency – a 20p coin in 1982 and a £1 coin in 1983. These coins were deemed necessary given the inflation that had taken place since decimalisation in 1971. The £1 note today has less spending power than did the ten-shilling note when it was replaced by the “50p” coin in 1969. Therefore higher value coins are needed, particularly for the operation of vending machines. For various economic and psychological reasons it was decided that both of the new coins should be small relative to their value compared with other coins present in the system. Small coins are cheaper to produce, easier to handle and would bring the UK coin system into line with those of other nations. Also people do not like carrying large weights of change in their pockets. The introduction of the 20p would remove a large number of 10p’s from circulation, reduce the weight of change in the average purse or pocket, and leave room for the new £1 coin to be introduced later.