PLASTIC bank notes are to be issued by the Bank of England for the first time when the new STG5 ($A9.19) note featuring Sir Winston Churchill appears in 2016.
A STG10 ($A18.39) note featuring Jane Austen to follow around a year later will also be made from polymer rather than the cotton paper currently used, the Bank said.
It follows a three-year research program that concluded plastic notes stay cleaner for longer, are more difficult to counterfeit and are at least twice as longer-lasting.
A public consultation across the UK, giving people the chance to handle the notes, found 87 per cent of 13,000 individuals who responded were in favour of polymer.
Bank governor Mark Carney said: "Ensuring trust and confidence in money is at the heart of what central banks do. Polymer notes are the next step in the evolution of bank note design to meet that objective.
"The quality of polymer notes is higher, they are more secure from counterfeiting, and they can be produced at a lower cost to the taxpayer and the environment."
The new notes will retain their familiar look, the Bank said, including the portrait of the Queen and a historical character.
Meanwhile, the Bank announced new guidelines on how it chooses historical figures to feature on bank notes, which include the aim that they should "reflect the diverse nature of British society".
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