Currency in the UK
A Travel Money Guide to the UK
So you’re making the pilgrimage to ol’ Blighty. One of the best ways to prepare for your trip is to get up to speed on the UK currency.
Get your money’s worth and feel a little travel savvy with this helpful traveller’s guide to the British pound.
The currency the UK uses
The pound is the official currency of the United Kingdom. The pound is represented by the symbol £ and the currency code GBP. The UK includes England, Scotland, Wales and Northern Ireland.
Don’t forget, the Republic of Ireland uses the euro so if you’re planning to cross from Northern Ireland to Ireland or vice versa, you’ll need two currencies.
British Money
The base unit of the UK’s currency system is the British pound, often called a quid. One pound is made up of 100 pence (represented by the symbol p and more commonly called ‘pee’).
Many Brits also refer to the pound as the sterling while locals often refer to the £5 and £10 notes as fivers and tenners respectively.
British coins are circulated as 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2.
Banknotes are available in £5, £10, £20, £50, and £100.
New plastic, waterproof sterling notes and new coins have been circulated since 2016 but if you still have pounds in the older styles, many banks will swap them for the flashy new versions.
Each British note has its own distinct colour that makes them easily distinguishable from one another. Queen Elizabeth II is featured on every British currency. The reverse side typically has a British landmark or historic figure, or national symbol.
Scottish and Irish Banknotes
While both Scotland and Northern Ireland use the pound sterling, they actually have different banknotes to those issued in England and Wales.
Even though these notes are not considered official legal tender in England or Wales, they’re typically interchangeable there. While businesses are not obligated to accept Scottish and Irish notes, it’s a rare occasion when they will refuse them.
Most banks will swap out Scottish and Irish notes for English notes without a fee. The standard English banknotes are accepted throughout the UK.
Banknote Denominations
Scottish banknotes come in denominations of £5, £10, £20, £50, and £100. A rare £1 note is also still used in circulation.
Coin Denominations
British coins are circulated as 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2. All coins in Scotland are issued by the Royal Mint, so their designs match coins found everywhere else in the UK.
Using Your Bank Card in the UK
Travel money cards in the UK are popular, with contactless payments becoming increasingly common, up to £30 per transaction. Some of the best travel money cards include debit, credit and prepaid cards.
The value you’ll get from using your bank card will vary depending on the bank you use and the type of card you have.
You’ll have greater ease using a card with a Visa or Mastercard logo; you may have trouble paying for items with American Express or Diners Club, especially outside London.
Below we’ve listed some of the pros and cons of the various types of plastic money to use in the UK.
Debit Cards
Still a favourite among travellers, debit cards make it easy to pay for things overseas but you may pay for the convenience in high fees.
Many banks charge a range of fees for debit card use overseas. These can include withdrawal fees, international ATM fees, and currency conversion fees – often throwing a poor exchange rate into the mix as well.
One of the best travel money cards for the UK is the Wise Travel Card, which doesn’t have purchase, load, or reload fees and offers the same exchange rates as those you see on Google or XE.com.
Credit Cards
As with bank cards, credit cards are commonly accepted everywhere in the United Kingdom. But they may come with a host of additional fees for overseas transactions, among them:
- An international transaction fee
- An exchange rate margin
- An ATM fee
- A potential ‘cash advance fee’ if you use an ATM
If you still enjoy the peace of mind of having a credit card, try the 28 Degrees credit card, which is made for frequent travellers.
Prepaid Travel Cards
They’re not always the golden option you expect. Long lists of fees often accompany bank prepaid travel cards. You might also be looking at poor exchange rates and difficulty converting any UK currency back to Australian dollars.
If you like to lock in currency and load up a card, look to the Revolut and TransferWise debit cards, both of which provide this option at a good exchange rate.
How to Exchange Currency When You Arrive in the UK
Many people plan to change their money at the port of entry – an international seaport, train station, or airport. This can be a mistake as currency exchange outlets in these areas tend to offer some of the worst exchange rates and fees.
There are several ways to change your money to pound sterling once you get beyond the airport.
ATMs in the UK
One of the easiest and most popular ways to get money is simply to use your everyday bank card at an ATM (often called a cashpoint in the UK).
Most UK ATMs accept international cards with chips and PINs; cards with Visa, Mastercard, Maestro, Cirrus, and Plus logos are the most commonly accepted.
You can find cashpoints connected to every bank and within supermarkets, convenience stores, and petrol stations. Just keep in mind ATMs in these smaller establishments tend to charge more.
You may also face a range of additional charges. Most ATMs charge a small fee for withdrawals from non-UK accounts. And your own bank might hit you with fees for currency conversions, overseas withdrawals, and over-the-counter payments.
Currency Exchange in the UK
There are plenty of Bureaux de Change or currency exchange outlets in London and other major cities across Great Britain and Northern Ireland.
Travelex and other currency exchange companies have offices in most towns and cities, major train stations, ferry terminals, and airports.
You can also change money at most bank branches, post offices, and even the popular British department store Marks & Spencer.
Exchange rates and fees can vary drastically between outlets so do some research on the current exchange rates before you go. Exchange outlets in the bigger cities typically offer better deals than those in rural areas.
Travellers Cheques
A fairly outdated concept in the UK today, travellers cheques are not generally accepted in stores (although larger chains such as Harrods may take them). In reality, it’s better to stick with online or over-the-counter currency exchanges or ATM withdrawals.
Buying Pound Sterling Before You Go:
Ultimately, you’ll get the best deals by buying your pounds with dollars before you head overseas. There are three standard ways to exchange AUD for GBP before you leave:
- Buy currency online and have it delivered or collect it in-store
- Swap British pounds for Australian dollars from a currency exchange store
- Buy British pounds currency at your home airport
If we’re frank, we’d advise you to scratch that last option. Australian international airports are renowned for having some of the worst exchange rates and fees in the world.
Instead, order your currency online through a money changer like S Money, which offers the exact same exchange rate you’d find on Google or XE.
Travelex and Travel Money Oz also enable currency orders online but expect to wait between two and five business days for the order to be delivered or ready for pick-up.
The Pound: The Face of the UK’s Currency
The base unit of the UK’s currency system is the British pound, often called a quid. One pound is made up of 100 pence (represented by the symbol p and more commonly called ‘pee’).
Many Brits also refer to the pound as the sterling while locals often refer to the £5 and £10 notes as fivers and tenners respectively.
British coins are circulated as 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2. Banknotes are available in £5, £10, £20, £50, and £100.
New plastic, waterproof sterling notes and new coins have been circulated since 2016 but if you still have pounds in the older styles, many banks will swap them for the flashy new versions.
Each British note has its own distinct colour that makes them easily distinguishable from one another. Queen Elizabeth II is featured on every British currency. The reverse side typically has a British landmark or historic figure, or national symbol.
Scottish and Irish Banknotes
While both Scotland and Northern Ireland use the pound sterling, they actually have different banknotes to those issued in England and Wales.
Even though these notes are not considered official legal tender in England or Wales, they’re typically interchangeable there. While businesses are not obligated to accept Scottish and Irish notes, it’s a rare occasion when they will refuse them.
Most banks will swap out Scottish and Irish notes for English notes without a fee. The standard English banknotes are accepted throughout the UK.
The Average Costs to Travel in the UK
If you want to be money smart, you’ll want to get just the right amount of British pounds for your trip. Working out how much spending money for the UK you will need can be difficult.
The average amount spent per day in the UK is $220 and to help you calculate that amount you need, here are some of the average costs of travelling throughout the UK (keeping in mind prices may be a little higher in London):
£60+
A double room in a typical hotel
£8+
A standard pub meal
£3-4
A pint of beer
£2.40
A single Tube journey with an Oyster card
£10
Entry to castles and similar attractions
Excess Pounds? What to Do with Unused UK Currency
Returning from the UK with stacks of British banknotes is hardly an ideal situation but there’s no need to consider it a loss.
Here are some ways to dispose of those last few quid:
- Many airlines distribute envelopes for you to deposit your remaining currency as a donation to various organisations (for example, Qantas has its Change for Good program with UNICEF)
- Australian international airports also have collection points where you can deposit your remaining currency as a donation to charity.
- The Commonwealth Bank of Australia also collects foreign currency and gives every cent to UNICEF.
- You can change your currency at an exchange office at the airport but keep in mind, you will get terrible exchange rates and fees.
- For larger amounts, use a money changer in the city to convert your GBP back to AUD.
- Give those greenbacks to a friend heading to the States and make their day!
- Keep it for the next trip! Aside from the United Kingdom, the pound sterling is also used in British Overseas Territories, the South Sandwich Islands, the British Antarctic Territory, and Tristan de Cunha.
7 Money Tips to Get You Through the UK
Millions of travellers head to the UK each year. Sadly, many waste their money on unnecessary foreign currency conversion.
So here are a few practical tips to help you get your money’s worth:
- Avoid the airports! Currency exchange bureaus at the airport charge epic fees. If you like a good deal – or even just a reasonable one – avoid these at all costs.
- Only carry what you need – It can be expensive to change GBPs back into AUDs so only take what you think you will spend. Not only this – nobody likes to tuck wads of notes into their socks and toiletries for safekeeping on longer journeys.
- Ask for a mix of denominations – Make it easy on the British vendors and try to get a mix of £20 and £10 notes.
- Check your exchange rate – Google and XE.com are the standard market exchange rate but you’ll notice how wildly bank and currency exchanges can vary their rates. Try to get as close to the market rate as possible.
- Look out for hidden fees – The bane of our (financial) existence, hidden fees will often make a huge difference to the cost of your holiday. Be particularly wary of hidden bank fees for overseas card usage.
- The right card makes all the difference – Having a card is convenient but it can take a hit to the bank account if you have the wrong card. Research and arm yourself with the best card for travel for big savings.
- Mix it up! Many travellers only use their credit card while some only think about cash. But the best option depends on your situation. Save the card for huge purchases such as hotels and car hire and reserve your cash for smaller wins – transport, attractions, or meals out.
Heading Elsewhere?
Popping across the Channel to France or heading over to Ireland while you’re so near?
Learn more about the French currency and Irish currency today.
The Latest British Pound news
2024 AUD GBP Forecasts
The Australian dollar (AUD) has been on a wild ride against the British Pound (GBP) in 2023 but 2024 may spell a different story. The Australian dollar (AUD) weakened considerably against the British Pound (GBP) in 2023 but it could strengthen slightly in 2024. The AUD peaked at almost 58p in February 2023, before sinking to almost 50p in August as multiple economic factors weighed down sentiment. The relative weakness in the Australian dollar has made the cost of travel more expensive for many Australians, with the United Kingdom our fourth most popular international destination, according to ABS data.
2023 AUD GBP Forecasts
This article focuses on what banks predict for the AUD to GBP exchange rate over long term in 2023. The 2024 AUD GBP Forecasts are out now With most of 2023 out of the way, attention turns to 2024. Now that most economists have released their predictions for the AUD GBP exchange rate, head here to find out the most up to date forecasts:
Best Travel Money Cards for the UK
Planning a trip to the UK from Australia? Whether you’re exploring the bustling streets of London, the historic sites of Edinburgh, or the charming countryside of Wales, having the right travel money card can make your journey smoother. In the UK, you are likely to pay for accommodation, food, transport, and entertainment, as well as withdraw cash from ATMs with your card. So which is the best option to take with you? In this guide, we’ll dive into the best travel money cards for Australians heading to the UK, ensuring you have a seamless and cost-effective experience.
