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The largest mutual retailer has doubled its profit payment to its members.

The Co-operative will pay members a total share of profit payment for 2007 of £38.1m compared to £19.6m the previous year.

Members will receive a cash payment based on the points they earn when they trade at any of the group's businesses, including: Co-operative food, travel, pharmacy and Funeralcare as well as the Co-operative Bank and insurance.

The value of each point varies year-on-year because the dividend payment is linked to the profits of the Co-operative Group, which were up 8.6 per cent at £431.6m last year. For 2007, a point is worth 2.63p up from 1.43p in 2006.

The payments will be paid in the form of vouchers, which can be spent or cashed in the stores, or into a bank account.

Patrick Allen, director of marketing for the Co-operative Group, said: "It is only right that our members, who ultimately own and control the business, share in our success. Last year the group as a whole delivered a strong performance which resulted in a significant increase in profits. We completed the merger with United Co-operatives and accelerated the rollout of the new the Co-operative brand across our family of businesses.

"At a time when communities are becoming increasingly dominated by a handful of large and impersonal businesses, we are showing consumers that being a member of the Co-operative is a totally different experience from being just a loyalty cardholder with another retailer."