Barclays Overhauls Its Current Account Blue Rewards Scheme

Barclays has taken the axe to its Blue Rewards membership programme, hiking the monthly fee and reducing the amount of cashback you can earn—a change that will cost many customers £36 per year and erase all the profit they earn from the scheme.

The Blue Rewards membership programme is an optional add-on to Barclays current accounts, launched in 2015. It currently costs £4 per month but lets you earn cashback on spending, with a monthly limit determined by how many Barclays products you have (mortgage, personal loan, home insurance, life insurance).

From 1 March 2022, the monthly membership charge will rise to £5 per month for all Blue Rewards customers. At the same time, the amount of cashback you can earn just as a current account customer will fall from £7 per month to £5 month. This means customers who only have a current account are missing out on £36 per year and, in fact, not earning anything from the Blue Rewards programme. You also still have to pay at least £800 into the account each month and make two direct debit payments to even earn this cashback. Fail to do that and you’ll be £5 down per month. 

Barclays is also trimming the amount of cashback you can earn if you hold a Barclays residential mortgage—from £5 per month to £3 per month. This is a loss of £24 per year in rewards.

You’ll still earn 3% on home insurance premiums and a potential £1 per month in cashback if you have a Barclays personal loan. 

But for many customers, the changes mean the Barclays’ scheme will no longer deliver any benefits and could actually leave you down a few pounds per month. 

Blue Rewards is also currently closed to new sign-ups until these changes come into force in the spring.

This isn't the first change Barclays has made to the Blue Rewards programme recently. As of August, you must use Barclays online or mobile banking or have your Blue Rewards membership cancelled, as the bank tries to push its customers toward digital banking.

Still interested in a current account that delivers cashback and perks? There are now better options on the market.

With Santander’s 123 Lite account you can earn 1-3% cashback selected household bills, up to £15 per month (although few will earn that much), for no monthly fee.

The Halifax Reward account pays £5 per month, or a monthly Vue Cinema Ticket, two Rakuten TV rentals or three digital magazines, if that suits you better. There’s no monthly fee but you do have to pay at least £1,500 into the account each month and spend £500 per month on your debit card (or keep £5,000 in the account).