LOYALTY club passengers travelling on the new East Coast franchise will have to spend ten times as much to earn enough points for a free train ticket, it has emerged.

Campaigners have branded the return "an insult" after the new franchise holder, Intercity Rail (ICR), a Stagecoach-Virgin consortium, emailed final the details of its Nectar point scheme to East Coast customers this week.

The Nectar scheme will replace the popular East Coast Rewards loyalty club from Sunday as the publicly-owned franchise is handed back to the private sector.

Existing Rewards members will be able to convert their current tally into Nectar points at a rate of six Nectar points for every one Rewards point. There will also be an introductory rate which will see 500 Nectar points worth £3.75 on the Virgin East Coast website until May 31, falling to £2.50 thereafter.

Calculations by campaign group, Save East Coast Rewards, calculate that this means passengers will have to spend £2,500 to earn enough Nectar points to 'buy' a £25 standard single - compared to £255 currently under East Coast Rewards.

A first class single will require a £5000 spend compared to as little as £307 currently.

Dan Hopkins, who founded Save EC Rewards in January, said it was "a bit of an insult" for ICR to claim any passengers would be better off.

He added: "Those who've been following our campaign won't be surprised at how poor value Nectar points are but it appears to have been a shock to many others when they read the email from East Coast.

"Every time East Coast sends out emails about the switch to Nectar we see an increase in followers to our Twitter account. This time we added 300 new followers in the 12 hours after the email was sent out."

Rewards user, David Hallowell, added: "My total spend is quite high, but nowhere near excessive, over £3000 on an average year. The free tickets are a great reward for using their services. I don't think the same thing about Nectar, the same spend would only get £30 of rewards."

ICR said market research of 2000 East Coast passengers found that Nectar was "by far the most popular loyalty scheme" among those surveyed. Critics say ICR should have questioned Rewards members specifically, rather than a random sample of East Coast passengers.

A spokeswoman for the Stagecoach-Virgin consortium said: "We have now made a commitment to introduce Nectar on March 1 and we'll also offer the choice of collecting points on Virgin Atlantic's Flying Club.

"The change benefits millions of customers every year who will now be able to enjoy the bonus of Nectar or Flying Club points when buying tickets for travel with Virgin Trains East Coast."