Supermarket Iceland is launching the Food Club credit scheme to help its customers afford their school holiday food shop amid the cost of living crisis.
Iceland Foods has partnered with social enterprise Fair For You to launch a scheme that will allow eligible customers to access micro loans during the school holidays.
A Food Club trial found that 92% of members said access to ethical credit had stopped or reduced their reliance on food banks, according to Iceland, while 71% said they were less likely to fall behind on rent, council tax and other bills.
Simon Dukes, CEO of 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. 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."
But how does Iceland’s Food Club work and who is eligible?
How does Iceland’s Food Club credit scheme work?
Iceland’s Food Club scheme will provide micro-loans of £25-£100 in the form of pre-loaded cards that can be used to shop in store or online at Iceland.
The repayments are set at £10 per week and customers can choose which day of the week they make the repayments. Customers can also make early repayments if it’s easier for them to do so.
All loans will be completely interest-free, meaning customers will not have to pay back more than they borrowed.
Iceland customers can take out one loan a time during six windows that coincide with the school holidays.
Approved customers will receive the cards within five to seven business days.
Who’s eligible for Iceland’s Food Club credit scheme?
Iceland’s Food Club Card is open exclusively to new customers.
To find out if you could be eligible for the scheme, you can try Fair For You’s eligibility checker, which doesn’t leave a footprint on your credit file.
Once you apply, Fair For You will perform credit searches but says it doesn’t do generic credit scoring.
People who are on benefits may still be eligible as long as they have a stable, regular income and bank account to make the repayments from.
