asked Her Majesty's Government:

What is the equivalent purchasing power of £50 at the time of the introduction of the £50 note in 1981 at today's prices; and why they have not introduced a £100 note. [HL592]

Adjusting for inflation, the purchasing power of £50 in 1981 would be equivalent to the purchasing power of around £137 (to January 2006). The Bank of England currently has no plans to change the denominational structure of its note issue. It does not believe that there is public demand for a £100 note. This is because the public makes much greater use of electronic payments than they did in 1981. Survey evidence shows that the vast majority of cash transactions are for a value of £5 or less and that the highest denomination note that the public would prefer to receive from an ATM withdrawal is £20. A further consideration is that high denomination notes can be more attractive to those wishing to hold and transfer criminal funds.