Tesco is scrapping its Brand Guarantee promise next month as it claims many customers are not benefitting from it.

The supermarket giant has confirmed it will end the scheme on 16 July due to it being used in fewer than one in eight transactions.

If you buy 10 or more products, the Brand Guarantee scheme gives you an instant refund if the branded items in your basket or trolley are cheaper at Asda, Morrisons or Sainsbury's.

The price promise is available online and in Tesco superstores, Extra and Metro stores - there's a maximum refund of £20 per shop.

Although Tesco is scrapping its Brand Guarantee, Asda and Ocado still have price promises in place - see more details in How to exploit price match policies.

Slash up to £1,500 off your annual grocery bill & other tricks

Whether you shop online or in-store there are a number of ways you can save on your supermarket shop. See our 35 Supermarket Shopping Tips for full help, but to get you started:

  • Take the Downshift Challenge. The theory is simple, try dropping one brand level on everything and see if you can tell the difference. If not, stick with the cheaper one. This could save you 30%, or over £1,500 on a family's shop annually. See our Downshift Challenge tool.
  • Grab 100+ supermarket coupons worth £100+. See our regularly updated list of supermarket coupons for money-off vouchers and deals.
  • Look for yellow sticker discounts. Bargain-hunters have been known to bag spectacularly cheap shops - one got £60-worth of shopping for £2.55 - by hitting the reduced aisles at the right time. See the best times to find yellow sticker bargains.
  • Shop in a different aisle. You can often buy the same item for less just by finding it in a different aisle. See our blogs on saving in the baby aisle and world foods aisle, and how to avoid overpaying in the free-from aisle. Plus see how you can save by crouching down.

What does Tesco say?

Alessandra Bellini, Tesco chief customer officer, said: "Since Brand Guarantee launched in 2015, we have continued to invest in simpler, lower everyday prices. As a result, the scheme is far less relevant for our customers today, and so we are withdrawing it as we focus on offering customers even more straightforward value for money at the shelf edge.

"In recent weeks, we've already reduced the prices of over 260 popular products, including own brand and branded favourites, and we'll continue to work hard to offer our customers great quality food at great prices."