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

A total of 57,000 members in Oxford 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 43 food stores across Oxfordshire.

Vouchers to spend with the society, which has its headquarters in Botley, Oxford, 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, which covers Oxfordshire, Gloucestershire, Wiltshire, Shropshire, Worcestershire and surrounding counties.

The society has 90,000 members in Oxfordshire.

Co-op member Maureen McCreadie, 68, from Eynsham, said: "I like the way that you can help the community and charities by donating your vouchers which I do regularly.

"It's a good scheme which is very easy to take part in."

But Kate Horrocks, 47, from Botley, said she rarely used her card as it became too mixed up with other cards in her purse and she often lost the vouchers.

She added: "I would much rather have something like a cake given away free straight away than have to wait for the vouchers to come through."

The Co-op's 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're 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, cooperative business."

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

Co-op stores across the county are setting up collection points for people to donate toys for children at the Oxford Children's Hospital and The Horton, in Banbury.

The Co-op has teamed up with radio station Fox FM to launch the appeal.

All donations will be wrapped and delivered by DJs from the radio station to the hospitals in time for the children to open on Christmas Day.