EXCLUSIVE: Big changes coming to your Lloyds Avios Rewards credit card

I would like to claim that this story was the work of our crack team of investigative journalists, but I actually owe it to reader Jack.  He posted it in the comments on Saturday night whilst I was on the way to the Hilton Honors Bastille gig with a note saying ‘erm, Rob, you should look at this’.

We have known for some time that the American Express element of the Lloyds Avios Rewards credit card was living on borrowed time.  Amex has cancelled all of its licensing deals with other banks.  The Lloyds Avios Rewards card was withdrawn from the market for new applicants a couple of months ago.

By mistake, I imagine, the terms and conditions of the new Lloyds Avios-earning credit card have been posted online.  (EDIT: link removed as the document has been removed)

We believe that the new card will be called the Lloyds British Airways Mastercard.

This is what is going to happen:

The American Express element is dead.  The card will be a pure Mastercard.

The upgrade voucher seems dead.  It appears that you will no longer get an upgrade voucher for spending £7,000 per year on the card.

There may be no annual fee – it is not mentioned in the new T&Cs

You may start paying FX fees.  There is no mention in the new T&Cs that they are waived.

Here are the earning rates for the new Lloyds British Airways Mastercard:

0.4 Avios per £1 spent in the UK

0.8 Avios per £1 spent outside the UK

0.4 Avios per £1 on balance transfers (but presumably there is a fee attached to these)

One implication of how the rules are written, although it isn’t fully clear, is that Avios will be earned in multiples of £5.  Your actual earning will be less than 0.4 Avios per £1.  Any purchase under £5 will earn nothing.  All other purchases will be rounded down to the nearest £5. 

(The other implication of the wording is that only your total monthly spending is rounded down to the nearest £5, which clearly makes no real difference to what you earn.)

Here is an interesting quirk:

Holders of a Club Lloyds current account will earn an extra 0.1 Avios per £1 (0.2 Avios per £1 for foreign transactions)

This takes you up to 0.5 Avios per £1 for UK spending and 1 Avios per £1 for foreign spending.

For this to kick in, you must have had a Club Lloyds current account for at least six months.

Going forward, with the closure of the Avios Travel Rewards Programme, you will manage your Lloyds credit card account via www.ba.com/lloyds.  This page is not yet live.

When are these changes kicking in?

As the current Lloyds Avios Rewards cards are closed to new applicants, there is no doubt that these changes are for existing cardholders.  I assume that you will receive an email shortly from Lloyds announcing the closing date for the existing cards.

What do I think of the changes?

Frankly, compared to the new Virgin Atlantic credit cards (details here) this will be a very poor product.

The free Virgin Mastercard offers 0.75 Virgin Atlantic miles per £1.  Lloyds is offering you 0.4 Avios instead.

The paid Virgin Atlantic Mastercard offers a whopping 1.5 miles per £1, almost 4x what Lloyds is offering.

The Virgin cards also have the ‘241’ offer, albeit only in Economy unless you have Virgin status.  The new Lloyds Avios Rewards credit cards appear to have nothing.  The assumed loss of the upgrade voucher is particularly poor as this was a real boon, especially for solo travellers.

On the upside, assuming there is no annual fee, it will be more generous than the Tesco Clubcard Mastercard (which, note, currently offers 2400 Avios as a sign-up bonus via 1000 free Clubcard points).  It was a little embarrassing that you earned more Avios on the FREE Tesco Clubcard Mastercard (0.3 Avios per £1) than on the £24 Lloyds Avios Rewards Mastercard (0.25 Avios per £1) …..

Of course, if you qualify for it, the HSBC Premier Mastercard (free to Premier current account holders) pays 0.5 Avios per £1.  The HSBC Premier World Elite Mastercard offers 1 Avios per £1.

It is roughly equal to the free IHG Rewards Club Mastercard which gets you 1 IHG point per £1 which I value at 0.4p.  I also value 0.4 Avios per £1 via Lloyds at 0.4p.  The IHG card does give you Gold status in IHG Rewards Club as an extra perk, however.

For clarity ….

I can’t be 100% certain that the terms outlined above are fully correct.  It is possible, for example, that the upgrade voucher may be retained but just isn’t mentioned in the terms and conditions …. but that would be odd.  Similarly, it is possible that FX transactions will remain free.  We need to wait for Lloyds to make the full announcement.

In case you’re wondering, I have no idea if Lloyds intends to open up the card to new applicants or not.  Based on my recent conversations with Avios, it isn’t happening in the short term.

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Want to earn more points from credit cards? – March 2025 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios Mastercard

Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review

British Airways American Express Premium Plus

30,000 Avios and the famous annual 2-4-1 voucher Read our full review

The Platinum Card from American Express

80,000 bonus points and great travel benefits – for a large fee Read our full review

Virgin Atlantic Reward+ Mastercard

18,000 bonus points and 1.5 points for every £1 you spend Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

SPECIAL OFFER: Until 8th April 2025, the sign-up bonus on American Express Business Platinum is increased from 50,000 Membership Rewards points to 120,000 points. You receive 80,000 points when you spend £12,000 within three months and a further 40,000 points if you spend on the card between Month 14 and Month 17. Points convert 1:1 into Avios and many other programmes. Click here to apply.

SPECIAL OFFER: Until 8th April 2025, the sign-up bonus on American Express Business Gold is increased from 20,000 Membership Rewards points to 60,000 points. You receive 40,000 points when you spend £6,000 within three months and a further 20,000 points if you spend on the card between Month 14 and Month 17. Points convert 1:1 into Avios and many other programmes. Click here to apply.

American Express Business Platinum

Up to 120,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

Up to 60,000 points sign-up bonus and FREE for a year Read our full review

Capital on Tap Pro Visa

10,500 points (=10,500 Avios) plus good benefits Read our full review

Capital on Tap Visa

NO annual fee, NO FX fees and points worth 1 Avios per £1 Read our full review

British Airways American Express Accelerating Business

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review