Major supermarket Co-op is set to axe its rewards scheme in January 2024, a move which is set to impact thousands of shoppers across the UK.

A Co-op membership (the supermarket's loyalty program) costs £1 and gives holders access to "exclusive offers, discounts and events".

Part of the perks, currently, are members get 2p credit to use in store, for every £1 they spend on Co-op branded goods.

But this is about to change.

Co-op to axe rewards scheme - see when and why

Co-op Members received an email on Monday (January 15) to say they will no longer be rewarded 2p for every £1 spent on the retailers' own-brand goods, according to The Sun.

The change is set to come into affect on January 24, 2024.

The email said: "By making changes to our membership benefits, we're giving you more immediate value back.

"From 24 January, you'll no longer earn rewards for purchasing Co-op products and services.

"Instead, as a valued member, you'll always save more with exclusive Member Prices across Food, Insurance, Funeralcare and Legal Services, giving you savings on the things you need."

Money Saving Experts - which was founded by Martin Lewis - said instead of the 2p rewards scheme, shoppers will be offered discounts on both Co-op branded products and services and non-Co-op branded items through its "Member Prices" scheme.

The National: Co-op will be axing its 2p for every £1 rewards scheme from January 24, 2024.Co-op will be axing its 2p for every £1 rewards scheme from January 24, 2024. (Image: PA)

Current examples of "Member Prices" include Co-op's lunch time meal deal, which costs £3 for members instead of £4, as well as its pizza and ice cream bundle, which costs £5 for members rather than £6. 

You can read more about the change to Co-op's rewards scheme on the Money Saving Expert website.

Co-op, speaking to The Sun, revealed the decision behind scrapping the rewards scheme.

The supermarket chain said: "We know times are tough for our member owners and communities right now, which is why we've listened and are making some changes to give more value back to them whilst still supporting local communities.

"From January 24, instead of earning rewards on the purchase of Co-op branded food purchases, members will now benefit from a significantly increased number of member prices and deals in all our businesses."