Grocery chain Iceland is offering loans to customers who are struggling to afford food.
The trial scheme allows shoppers to apply for short-term microloans through the Iceland Food Club, which is operated by charity -owned lender Fair for You.
Families can ask for between £25 to £75, which is repaid in fixed £10 weekly instalments.
Iceland first piloted its Food Club initiative in two areas in Yorkshire and North Wales in 2020, and it has now rolled out across north west England and South Wales.
The loan scheme has offered shoppers over £1m in loans so far.
The interest rate payable is 45%, equivalent to 55.6% APR, according to Fair for You.
But Iceland managing director Richard Walker says a £75 load repaid over eight weeks would see the borrower pay total interest of £2.89, and if someone borrowed the minimum of £25, this would attract 40p interest.
The loan works by pre-loading the agreed amount onto a card, which can then be used to shop in Iceland, either in store or online.
The cards can be used over as many visits as customers want, and shoppers can can take out further credit for additional Iceland shops up to six times a year, as long as the total is never more than £100 outstanding at any one time.
Sara Williams, of the Debt Camel blog, advised hard-up families to look around before taking a loan, but said the Iceland loans were cheaper than some other alternatives.
She said: "Fair for You is an ethical lender who provides a much cheaper alternative to expensive 'pay weekly' shops for people that need white goods and furniture.
"Their new micro-loans for food have only very small amounts of interest added, although the interest rate can look high. If one of these loans gets you out of a tight spot, then that is great."
Although the loans are not available in our area yet, struggling families might be able to get help towards the cost of food and other living expenses completely free.
All of the seven councils in our area offer help on a means-tested basis either through their own crisis support fund or through the Government backed Household Support Fund.
For instance, Newcastle City Council's Crisis Support scheme helps residents facing such hardship as not being able to afford food or heating, having a major crisis to their home or facing emergency hospital trips or family breakdown.
Help available includes shopping packages, food parcels, gas and electricity top-up vouchers and emergency travel.
You don't need to pay this back if you qualify for support.
You may also be able to get free help through your local foodbank if you're really struggling.
The Trussell Trust is the largest network of food banks in the UK. Visit the Trussell Trust’s website to find your nearest food bank at www.trusselltrust.org/map by entering your postcode or nearest town.
For more help about foodbanks, including locally-run facilities and how to get a referral, visit Citizens Advice here.
