Barclays to scrap £5 loyalty reward scheme but customers will still have to pay: 'Rubbish!'

However, Barclays has emailed customers to let them know that this £5 monthly reward will no longer be available September 4, along with other product cash rewards.

As part of the email, titled “Barclays Blue Rewards is having a makeover”, customers were told that Blue Rewards members can now access other benefits as part of the £5 a month charge.

These include an Apple TV+ subscription and being able to watch Major League Soccer matches with an MLS season pass subscription during the season.

The bank's Blue Rewards customers are also benefit from Barclays’ Rainy Day Saver account which has a 5.12 per cent interest rate attached on balances up to £5,000.

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Taking to social media, the bank's customers shared their frustration over its decision to axe the £5 cashback deal.

One user wrote: "Barclays removing the £5 monthly loyalty reward (including all other product cash rewards!) and replacing it with discounted Apple TV subscriptions and MLS streaming is so c**p. Who even uses these? Nobody asked for this rubbish."

With this latest overhaul, Blue Rewards customers will reportedly receive fixed benefits worth up to £44 per month which is an increase from £35.50 previously.

On top of this, Barclays has said it undertake ongoing reviews to ensure Blue Rewards customers are getting fair value for their £5 monthly fee.

In situations where customers are not receiving fair value, the financial institution will be alerted and Blue Rewards will be removed, leaving customers on Barclays’ standard, fee free account.

Here is a full list of the Barclays benefits which are attached to the Blue Rewards scheme, as of September 4:

• Access to the Rainy Day Saver account
• Access to the Blue Rewards Saver account
• Barclays Cashback Rewards
• Apple TV+ and MLS Season Pass subscriptions.

James Hyde, of Moneyfactscompare.co.uk, said: “The monthly cash reward payment to qualifying customers effectively paid for the cost of the Barclays Blue Rewards membership: with that guarantee of cash set to be removed, members may re-evaluate whether the deal is right for them.

"The benefits of Apple TV and (an) MLS season pass may be tempting for some, while up to 15 per cent cashback is available when the debit card is used at selected retailers.

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“As is often the case with these membership products, the true financial implications of these changes will depend on how exhaustively individuals utilise the rewards available to them, and how much they invest in associated accounts each month. These changes will come into effect on September 4, so customers have time to consider their options following this update.”

Manuel Baldasano, head of customer and digital at Barclays UK, explained the reasoning behind the bank's decision to scrap the loyalty scheme.

He said: “We’ve been evolving Blue Rewards based on what we know our customers value and, with entertainment high on their wish list, we’re delighted to introduce top-quality shows from Apple TV, in addition to our best savings rates and cashback programme, all for the same £5 monthly fee.

“Our refreshed Blue Rewards proposition, which sits alongside our fee-free account and premier banking, means that customers can choose what works best for them.”