The history of the English penny can be traced back to the Anglo-Saxon kingdoms of the 7th century: to the small, thick silver coins known to contemporaries as pæningas or denarii, though now often referred to as sceattas by numismatists. Broader, thinner pennies inscribed with the name of the king were introduced to Southern England in the middle of the 8th century. Coins of this format remained the foundation of the English currency until the 14th century.

Ceolwulf II was the last king of independent Mercia. He succeeded Burgred of Mercia who was deposed by the Vikings in 874. His reign is generally dated 874 to 879 based on a Mercian regnal list which gives him a reign of five years. However, D. P. Kirby argues that he probably reigned into the early 880s. By 883, he was replaced by Æthelred, Lord of the Mercians, who became ruler of Mercia with the support of Alfred the Great, king of Wessex.