Members of the Midcounties Co-operative in Oxford are set for a bumper pay-out, bosses have promised.

A total of 57,000 members in the city will receive a penny for every point they have accrued over the last six months through shopping at Co-op stores and by using other services run by the society.

The rate is triple that of the previous dividend for the Society which has its headquarters in Botley.

Vouchers to spend with the Society are being sent out this week with a total value of £1,803,000 going to 130,000 customers in the Midcounties Co-op area stretching to Gloucestershire, Wiltshire, Shropshire, Worcestershire and surrounding counties.

The society has 90,000 members in Oxfordshire.

The windfall follows a good financial performance for the society with recent figures showing a trading profit of £5.7m for the six months to July 28 - a rise of 14 per cent.

Charities are also set to benefit as part of the payout, as Society members have the option to donate their share of the profits dividend to a chosen charity.

More than £46,000 will be donated to causes including Dogs for the Disabled, Oxfam, Woodcraft Folk, Cancer Research, Traidcraft, NSPCC, Help the Aged and the Royal National Lifeboat Institution.

Chief executive, Ben Reid said: "We are delighted that because of our successful trading performance, our members will see a significant increase in the share of the profits dividend payment they will receive this Christmas.

"This reward for our members is the very essence of being a member-owned, co-operative business."

This year The Midcounties Co-operative has seen a significant growth in membership with 22,000 new members joining between January and October.