Co-op has revealed plans to scrap cashback for loyalty card holders, and instead offer more discounts through 'member-only' prices.

The supermarket group, which runs over 2,400 food stores, communicated to its members via email that starting from January 2024, they will no longer receive a 2p cashback for every £1 spent.

Customers will have until the end of 2024 to spend any money on their cards.

From 24 January, Co-op said its members will see a 'significantly increased number of member prices and deals in all our businesses,' with member prices expanding to cover branded and own-brand foods for the first time.

Member prices are discounts offered only to people with loyalty cards.They are now offered by most supermarkets, but have proved controversial as signing up to a card requires sharing your personal data.

Shoppers without the cards can also be left paying much more for staple items.

Co-op launched its member prices in April last year in a bid to rival the likes of Tesco's Clubcard prices and Sainsbury's Nectar prices.

Additionally, the supermarket has announced that it has fixed the list of own-brand products that member prices are applied to, meaning that they will not change due to promotional periods or be dependent on availability.