The Food Club Scheme, which has already helped thousands of families across the UK access interest free, small sum loans of up to £100 to spread the cost of their grocery shops, is set to expand this Christmas.
Fair4All Finance has provided up to £2m lending capital to not for profit lender Fair for You who are working with Iceland Foods to deliver this scheme. This financial package will make more loans available, helping more families access interest free loans over the Christmas holiday period and during other school holidays in 2025.
An independent report from The Centre for Responsible Finance highlights just how much positive impact this scheme has already had. Customers have saved an estimated £2m by avoiding high interest credit and have reported a 77% drop in food bank use.
Almost a quarter of customers have said they no longer need to cut back their spending on essential items and a fifth confirmed they were no longer falling behind on rent or mortgage payments.
Importantly, 71% of borrowers say their diet has improved with a 41% increase in the number of families eating fruit at least three times per week.
The Centre for Responsible Finance also reports a 74% drop in Food Club customers borrowing from illegal lenders.
We know from our own research that illegal moneylending disproportionately impacts people in financially vulnerable circumstances, with, as of last year, potentially more than 3 million people having used an unlicensed lender or loan shark in the last 3 years.
‘Christmas can be a difficult time for many people, especially the 20 million people in the UK in financially vulnerable circumstances. We’re pleased to be able to support Fair for You and Iceland to deliver this scheme which is making a huge difference to families up and down the country.
Access to responsible, small sum lending can be transformational – and that’s what we’re seeing happen with the Food Club scheme’
Holly Piper, Director of Investments at Fair4All Finance
‘Responsible and affordable lending changes lives, and this partnership with Iceland is proof of that. By expanding the Food Club this Christmas, we’re making sure families don’t have to choose between heating and eating this winter’
Simon Dukes, CEO of Fair for You
‘For many families, Christmas is shaping up to be one of the hardest in recent years. While other businesses have been very vocal in feeling sorry for themselves of late, Iceland decided that we need to roll up our sleeves and get on with the job of supporting our customers.
The launch of the next phase of Food Club will help families afford a proper Christmas, giving them peace of mind and helping fight the scourge of predatory loan sharks and unregulated money lenders’
Richard Walker, Executive Chairman of Iceland Foods
