The currency of the United Kingdom is the pound sterling (GBP), written with the symbol £ and divided into 100 pence. It is the official money used across England, Scotland, Wales, and Northern Ireland, issued under the authority of the Bank of England. As of 2026, one US dollar buys roughly £0.79, though the exchange rate moves daily. The pound is the world's oldest currency still in continuous use, with roots stretching back more than 1,200 years.
The Pound Sterling at a Glance
"Pound sterling" is the full official name, but in everyday speech people simply say "the pound" or "quid." Its three-letter ISO code is GBP, and the £ symbol comes from a stylised letter L, short for the Latin libra, meaning a pound weight. The basic structure is straightforward:
- Currency: Pound sterling (GBP)
- Symbol: £, with pence shown as "p"
- Subunit: 100 pence make one pound
- Central bank: Bank of England, founded in 1694
- Slang: "quid" for pounds, "p" or "pence" for the smaller unit
Today the pound ranks among the world's most heavily traded currencies and is held as a major reserve currency by central banks. London's standing as a global financial centre keeps sterling firmly among the most important units of money on the planet.
A Currency Over a Thousand Years Old
The pound traces back to around 775 AD, when silver pennies circulated in the Anglo-Saxon kingdoms of what would become England. The name itself reflects its origin: a "pound" was literally one pound weight of sterling silver, divided into 240 pennies. That cumbersome system, with 12 pence to a shilling and 20 shillings to a pound, survived for centuries.
Everything changed on 15 February 1971, "Decimal Day," when Britain switched to a simple decimal system of 100 new pence to the pound. The reform swept away shillings and the old penny, modernising daily transactions overnight. Decades later the UK made another defining choice: when many European nations adopted the euro from 2002, Britain kept its pound, and it has remained outside the eurozone ever since.
Banknotes and Coins in Circulation
Bank of England notes come in four denominations, each a different colour and honouring a notable Briton:
- £5 – green, featuring wartime prime minister Winston Churchill
- £10 – orange, featuring novelist Jane Austen
- £20 – purple, featuring painter J.M.W. Turner
- £50 – red, featuring computing pioneer Alan Turing
All current notes are made of polymer rather than paper. Introduced from 2016 onward, polymer notes are more durable, water-resistant, and far harder to counterfeit. Notes issued from 2024 carry the portrait of King Charles III, replacing the image of Queen Elizabeth II. Coins circulate in eight values: 1p, 2p, 5p, 10p, 20p, 50p, £1, and £2. The distinctive 12-sided £1 coin, introduced in 2017, is one of the most secure coins in the world, and the Royal Mint that strikes them has been producing coinage for over 1,100 years.
Regional Banknotes and Legal Tender
One quirk of UK money surprises many visitors: not all banknotes look the same. While the Bank of England issues notes for England and Wales, several banks in Scotland and Northern Ireland print their own distinctive sterling notes. These are valued identically to Bank of England notes and represent the same pound sterling.
Strictly speaking, the term "legal tender" has a narrow technical meaning, and Scottish and Northern Irish notes are not technically legal tender even in their home nations. In practice, however, they are widely accepted as ordinary money throughout the UK. The main thing to know is that an English shop may occasionally hesitate over an unfamiliar Scottish note, so it can help to carry Bank of England notes when travelling south.
Using Money as a Traveller
The UK is one of the most card-friendly places in the world. Contactless payments by card or phone are accepted almost everywhere, from supermarkets to buses, and the contactless limit per tap is £100. Cash is still handy for small independent shops, market stalls, and tipping, but many people now go days without touching it. ATMs at bank branches are generally free to use, while some standalone machines in convenience stores charge a fee. Currency exchange is widely available at airports, banks, and bureaux de change, though airport rates are usually the least favourable. For deeper context on the country behind the currency, see our united kingdom country guide.
Frequently Asked Questions
What is the currency symbol for the UK pound?
The pound uses the symbol £, derived from the Latin word libra meaning a pound in weight. Amounts smaller than a pound are shown with the letter "p," as in 50p for fifty pence.
Does the UK use the euro?
No. The United Kingdom never adopted the euro and continues to use the pound sterling. It kept its own currency when many European countries switched to the euro from 2002, and it remains outside the eurozone today.
How many pence are in a pound?
There are 100 pence in one pound. This decimal system has been in place since "Decimal Day" on 15 February 1971, which replaced the older arrangement of 240 pence to the pound.
Are Scottish banknotes accepted in England?
Yes, Scottish and Northern Irish banknotes are the same pound sterling and are generally accepted across the UK. Occasionally an English business may be unfamiliar with them, so carrying Bank of England notes can make payments smoother.