AS the cost-of-living continues to tighten household budgets across the country, many families are turning to interest-free loans being offered by a supermarket chain. 

Iceland supermarkets are offering, as part of Iceland Food Club, interest-free micro loans of £25 – £100 to purchase everyday items to help customers cover school holiday grocery bills and smooth out income gaps - repayments are followed at £10 per week. 

Of the initial phase of the programme, 5,000 customers across the UK used the service. 

Of the 5,000, 2,000 were from the broader North West area. 

37 households from Carlisle used the service. 

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An independent report from Centre for Responsible Credit showed that 92 per cent of those who used the service had stopped or reduced their foodbank use. 

71 per cent of customers said they were less likely to fall behind on rent, council tax or other bills. 

The initiative is being run in hand with Fair for You, a non-profit responsible lending company. 

Richard Walker, managing director of Iceland Foods, said: “With Fair for You, we have rolled out Iceland Food Club to offer our customers even more support, helping them manage essential spending on their own terms. To those striving to worry less about how they will afford essential goods, this ethical credit scheme delivers real help when most needed and I believe it will make a valuable contribution to breaking the cycle of food poverty in this country.”

Simon Dukes, CEO, Fair for You, said:"Nobody should have to go hungry in order to feed their kids, or be forced into making impossible decisions between putting food on the table or having hot water. Our mission at Fair for You is to provide affordable credit to those who need it, to ensure they are not ripped off by exploitative lenders.

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"We're proud to be working with Iceland to operate the Iceland Food Club. Now that it has launched nationally, it gives plenty more families the opportunity to get the groceries they want, improve their diet and enjoy family meals together, while also getting a better handle on their finances." 

Anyone can apply for the scheme, and, if successful, credit can be used in store and online using a preloaded card.

For more information about the Iceland Food Club please visit www.fairforyou.co.uk/food-club-card or to find your nearest Iceland, visit www.iceland.co.uk/store-finder. 

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