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Tesco Clubcard non-members made to pay higher prices for most products including phone contracts

A general view of Tesco Extra store, in Warrington, Britain, January 13, 2022. REUTERS/Jason Cairnduff
Tesco is putting up prices for an array of essential household products for customers who are not Clubcard members. Photo: Jason Cairnduff/Reuters (Jason Cairnduff / reuters)

Tesco (TSCO.L) customers who are not Clubcard members are hit by higher prices for everything from milk and toilet paper to mobile phone contracts.

The retailer has higher prices for an array of essential household products for those who are not Clubcard members, forcing those who want price cuts at the supermarket to join the loyalty card scheme if they want to pay less.

On the supermarket's website, Nutella chocolate spread is lowered to £2 with a Clubcard membership but those without the card have to pay £2.90.

Nine rolls of Andrex toilet paper are listed at a bargain rate of £5.95 for those who have the loyalty card but other customers will be charged £6.95.

Household staples like Yorkshire Tea teabags cost £3.80 for regular customers, but are priced £2.50 for Clubcard holders.

Read more: Price of milk, cheese and butter jump by 30%

The price of a bag of five oranges is 99p for Clubcard members, but £1.50 for non-members.

Two Cravendale semi-skimmed milk 2 Litre bottles cost £4 for Tesco Clubcard holders, but for for non-members it's £5.20.

In 2022, Tesco raised their meal deal price from £3 to £3.50 for non-Clubcard members.

Amid the current cost of living squeeze, food prices in the UK are rising at their fastest rate in 42 years, according to the Office for National Statistics (ONS).

This has put pressure on household budgets and in 2022 UK grocery inflation increased 14.6%.

The rising cost of foodstuffs has not been matched by increase in payrates. The ONS said in a statement this month: "The real value of pay has fallen over the year by 2.5%, one of the largest drops since records began in 2001, as pay increases fail to keep pace with inflation".

Tesco Mobile charges increase for non-Clubcard holders

This week Tesco Mobile announced changes that will mean bill hikes of nearly 15% for its mobile customers who are not Clubcard members.

The supermarket said that it would scrap its fixed price promise for some customers on pay monthly and sim-only contracts.

Before the announcement, Tesco Mobile was one of the few UK mobile network providers that had committed to not increasing contract prices.

Read more: Grocery bills jump by £788 as food prices hit record high

The provider has said the price increase is a consequence of the costs of both maintaining and improving its service.

Which? director of policy and advocacy, Rocio Concha, said: "It's really disappointing that Tesco Mobile is planning to follow others and introduce the broken model of above-inflation price increases baked into customer contracts when it has previously championed fixed prices.

"Many customers on these contracts currently find themselves trapped in a catch-22 between price increases or significant exit fees if they want to switch to a better deal. Ofcom is currently reviewing these inflation-linked price hikes and considering their fairness for consumers.

"In the meantime, Which? is calling on telecoms providers to consider very carefully if this level of price increases can be justified. They should let their customers leave without penalty if they face mid-contract price hikes, and cancel 2023 mid-contract price rises for financially vulnerable consumers.”

Read more: UK inflation remains close to 40-year high

Tesco defended the price difference by saying that more than 70% of its customers currently use the Tesco Clubcard, according to a BBC report.

About 80% of transactions at large Tesco stores in the UK now use a Clubcard ⁠— meaning non-Clubcard holders are a minority.

A representative for Tesco did not immediately respond to a Yahoo Finance's request for comment.

Watch: Tesco management shake-up and hot counter closures leaves 2,100 roles at risk

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