Sainsbury's Bank cuts Nectar points by half - what it means for your rewards

Sainsbury’s credit card customers will from today see the number of Nectar points they can earn with each purchase significantly reduced.

Sainsbury’s Bank has slashed its Nectar rewards points from two for every £1 spent to one for every £2 spent on its credit cards. 

It means it will take its 1.8 million customers longer to accumulate Nectar points which can then be exchanged for vouchers to buy food at Sainsbury's or treats such as plane tickets at Expedia or cinema tickets for Vue cinemas.

The scheme did give customers two points for every £1 they spent at Sainsbury’s, Argos, Habitat and Tu Clothing. So £100 worth of shopping at Sainsbury’s earned customers 200 Nectar points. From today £100 worth of shopping will only earn 50 points. 

Previously, every 200 Nectar points earned the shopper £1 to spend. From today, credit card customers will have to spend £400 to earn this.

Sainsbury's Bank cuts Nectar points

The change to the Nectar card, one of the longest-running loyalty card schemes, was announced on 7 September and saw some disgruntled customers take to social media to complain.

Money expert Martyn James says the huge outpouring of anger since the announcement about the dramatic cut back is understandable. “With the cost-of-living crisis in full effect and still to peak, any business that increases prices or cuts savings deals risks losing customer loyalty once and for all,” he said.

Sainsbury’s replied to customers on Twitter to explain it ‘constantly reviews its offers’: “We’ve reduced the number of points you earn when paying with your credit card while still making sure we’re still offering Nectar points when you shop with us.”

Customers will continue to receive one Nectar point for every £5 spent in: Argos eBay stores, Argos Clearance stores, Argos's separate spares and accessories website, Sainsbury’s Bank, Sainsbury’s Energy and Sainsbury’s cafes.

Take action: other credit cards for Nectar rewards

Customers still wanting to earn two Nectar points for every £1 spent can do so - if they apply for a credit card elsewhere.

For example, the Amex Nectar card still allows you to earn two points for every £1 spent. 

Amex charges no annual fee for the first year - but costs £25 a year after this first year, after which, you might want to review the best credit card for you.

It is worth noting that new customers to the Amex Nectar credit card can earn 20,000 bonus points when they spend £2,000 in the three months.