Woolworths has reversed a decision to withhold rewards from a New South Wales primary school under its Earn & Learn program.

The Oaks Public School - located in a tiny regional town on Sydney's outskirts - says its local community spent $460,000 at Woolworths last year.

The school says locals bypassed independent grocers to ensure schoolkids received the supplies on offer under the rewards program.

But the supermarket giant dug in its heels this year after it emerged the school's order for 2012 had not been submitted correctly on the Earn & Learn website.

The school claims it placed the order and printed it off but missed a simple step required to complete the ordering process.

Woolworths says it tried to contact administration staff at the school five times by email and placed calls, including additional attempts during school holidays.

But the school says they were also contacted after their order was placed asking whether they wished to use their "remaining" unclaimed points.

The Oaks Public School took to its newsletter to parents, saying it would boycott the 2013 Earn & Learn program and asking the community to hit social media to complain.

A spokeswoman from Woolworths declined interview requests by the ABC but said in a statement the company was "disappointed the Oaks Public School did not submit their Earn and Learn points for the 2012 program or contact us when the oversight was realised".

"As a one-off gesture of goodwill, we have decided to allocate the points earned in 2012 to the Oaks Public School's 2013 account," the statement said.

The ABC has learned another school, which did not want to be named, was asked to post back at their own expense heavy goods ordered under the program due to a similar online ordering glitch, eventually being given points credit by Woolworths for a subsequent order.

Modern Teaching Aids, understood to be the key supplier for the Earn & Learn program, did not return the ABC's calls.

Based on the ABC's calculations, the Oaks Public School's almost half a million dollars of spending at Woolworths' stores will equate to a reward of school supplies to the value of about $2,700.

Woolworths says it has given away goods to the value of $26 million since the Earn & Learn program began.

Loading...