The British Pound Sterling
The UK uses the pound sterling (GBP), symbolised as £. One pound equals 100 pence. The UK does not use the euro, despite being geographically close to countries that do. This catches some visitors by surprise, so make sure you have pounds before or upon arrival.
Notes and Coins
Notes come in denominations of 5, 10, 20, and 50 pounds. All English notes are now polymer (plastic). Scottish and Northern Irish banks also issue their own notes, which are legal currency throughout the UK, although some shops outside those regions may be unfamiliar with them. Coins come in 1p, 2p, 5p, 10p, 20p, 50p, one pound, and two pound denominations.
Card Payments
The UK is one of the most card-friendly countries in the world. Contactless payment (tap to pay) is accepted almost everywhere, from major retailers to small market stalls, pubs, and public transport. The contactless limit has been raised to 100 pounds per transaction. Apple Pay and Google Pay are widely accepted.
Getting the Best Exchange Rate
- Avoid exchanging money at airports — rates are usually poor
- Use your bank's debit or credit card for purchases where possible
- Check whether your bank charges foreign transaction fees
- Travel-friendly cards from providers like Wise or Revolut often offer the best rates
- If you must exchange cash, use a reputable exchange in a city centre
ATMs
ATMs (called cash machines in the UK) are widely available. Most do not charge a fee for withdrawals from UK bank cards. For foreign cards, your own bank may charge a fee. Avoid independent ATMs in shops and pubs as these often charge higher fees.
Tipping
Tipping in the UK is customary but not obligatory. A guide:
- Restaurants: 10 to 15 percent if service is not included (check the bill)
- Pubs: Not expected for drinks; round up for food
- Taxis: Round up to the nearest pound
- Hotels: One to two pounds per bag for porters; not expected for housekeeping
Budget Planning
With your UK ETA sorted, plan your budget knowing that London is significantly more expensive than other parts of the UK. Northern England, Wales, and Scotland generally offer better value for accommodation and dining.
