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It means that "He" is not very clever, or, he is a dope, or, he is a bit slow - he is only ten pence to the shilling (of 12 pence).

Variations to this saying are many.

Also -

He is a sheep short in the top paddock.

He is not playing with a full deck (of cards).

He is a sandwich short of a picnic.

He is not the full Quid.

The lights are on, but nobody is home.

These are all expressions indicating that the subject is lacking in mental capacity or acuity.

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Q: What does the slang term He's definitely ten pence to the shilling mean?
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