United Kingdom

Currency in United Kingdom: what to use and how to exchange

The United Kingdom uses pound sterling (GBP, £), divided into 100 pence. Pay by contactless card or phone for almost everything, including buses and the Tube; carry £20–40 in cash for the rare cash-only shop, market stall or rural taxi, and take cash from an ATM rather than a bureau de change.

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Updated Sep 20263 min read

GuideUnited Kingdom

Key facts

Currency: Pound sterling (GBP, £); 100 pence
Card acceptance: Contactless is standard almost everywhere, including transport and small shops
Cash still useful forcheck: Some market stalls, small rural cafés, tips, taxis, car parks
Best value exchange: UK ATM withdrawal on a card with no foreign-transaction fee; avoid airport bureaux de change
Scotland and Northern Ireland notescheck: Local banks issue their own £ notes; valid across the UK but sometimes refused in England and Wales
Tipping: 10–12.5% in restaurants if no service charge is added; not expected in pubs

Details

The UK is close to a cashless economy. Contactless cards and phone wallets work on London buses and the Tube, on most regional buses, in supermarkets, pubs, cafés, museums and taxis. Many places now prefer card and some small businesses are card-only. A Visa or Mastercard is the safe default; American Express is accepted in big chains but not everywhere.

You still want a little cash. Village shops, some market stalls, honesty boxes at rural car parks, and a few taxi firms take coins and notes only. Around £20–40 per person covers a few days of small purchases; top up at an ATM rather than carrying a large amount from home.

The currency is the same across England, Scotland, Wales and Northern Ireland, but Scotland and Northern Ireland have their own banknotes issued by local banks. They are valid currency throughout the UK, yet shops in England and Wales sometimes refuse them because staff do not recognise the design. If you leave Scotland with Scottish notes, spend them there or change them at a bank.

Prices are shown with the £ symbol and include VAT at 20% for most goods and services. Some hotels and restaurants add a discretionary service charge of 10–12.5% to the bill; check before adding a tip. There is no separate tourist tax in most of the UK, though some local councils charge a small visitor levy on hotel stays.

Details
Situation	Best option	Notes
Everyday spending	Contactless card or phone	Standard in shops, pubs, transport
Small stalls and rural shops	A little cash	Keep £20–40 handy
Getting cash	UK ATM (cash machine)	Use bank ATMs, not standalone ones in shops
Airport on arrival	Small amount only	Airport bureaux de change rates are poor
Scottish or NI notes	Spend in the issuing country	Sometimes refused in England and Wales
Tipping	10–12.5% in restaurants	Not expected in pubs

Tips

Choose 'pay in pounds' (GBP) if a card machine or ATM offers to convert to your home currency; the machine's rate is usually worse.
Decline 'dynamic currency conversion' at ATMs and card terminals for the same reason.
Use a bank-branded ATM rather than a small machine inside a shop; fees and rates are clearer.
Keep a few £1 and £2 coins for buses, lockers, car parks and tips.
If you are offered a £50 note in change, spend it soon; small shops may not accept it.
Check your card's foreign-transaction fee before you travel; a no-fee card saves 2–3% on every purchase.

FAQ

Questions people ask

What currency is used in United Kingdom?

Pound sterling (GBP, £), divided into 100 pence. It is the currency in England, Scotland, Wales and Northern Ireland, though Scotland and Northern Ireland also have their own local banknotes.

Where is the best place to exchange money in United Kingdom?

Withdraw from a UK bank ATM using a card with no foreign-transaction fee. Airport and city-centre bureaux de change usually give worse rates. If you must use a bureau, compare the rate and commission before handing over cash.

Is it better to bring cash or use a card in United Kingdom?

Use a card for almost everything; contactless works on transport, in shops and in pubs. Bring or withdraw £20–40 in cash for small stalls, rural shops and tips. Cards give a better rate than exchanging cash.

Can I use Scottish or Northern Irish banknotes in England?

They are valid UK currency, but shops in England and Wales sometimes refuse them because staff do not recognise the design. Spend them in Scotland or Northern Ireland, or change them at a bank.

Do I need cash for buses and the Tube in London?

No. London buses are card or contactless only, and the Tube takes contactless cards, phones and Oyster. Elsewhere in the UK, most buses take contactless too, but a few rural services still want exact change.

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