http://www.coins-of-the-uk.co.uk/va...nny.html#QVb seems to suggest that they are that cheap (I'm guessing the prices are in GBP but it's probably near enough). I don't know much about British pennies, but a lot circulated Australian pennies are sold in bulk by the kilo. If anything, British pennies would have higher mintages than their Australian counterparts and thus be similarly cheap.
Not sure about the grade but I'd say either Fine or Very Fine.












