Iceland’s loan scheme, the Iceland Food Club, has supported over 23,000 families since its launch, offering interest-free loans to those in need.
- The scheme has distributed over £5 million in microloans, addressing gaps in income for financially vulnerable customers.
- Launched as part of Iceland’s ‘Doing it right: right now’ strategy, the Club has also benefited 44,000 children during school holidays.
- 92% of surveyed pilot scheme customers have reduced or stopped food bank usage due to the scheme.
- Fair4All Finance’s additional £2 million investment aims to expand the programme’s reach and sustainability.
Iceland’s innovative loan scheme, the Iceland Food Club, has made a significant impact since its national initiation last year. The scheme has supported over 23,000 families by offering interest-free microloans ranging from £25 to £100. This initiative, part of Iceland’s ‘Doing it right: right now’ strategy, aims to help financially vulnerable individuals manage gaps in their income.
Since its launch, the scheme has disbursed over £5 million in loans, ensuring that customers can access necessary funds without incurring additional financial burdens. A focus of the programme is to provide support during challenging periods such as school holidays, benefiting over 44,000 children.
The initiative is a collaboration between Iceland Foods and Fair for You, a charity-owned lender, which launched nationwide in August 2022. This partnership is emblematic of Iceland’s commitment to community support during the cost-of-living crisis. Richard Walker, Executive Chairman of Iceland Foods, acknowledges the scheme as a vital lifeline for many families.
Research among more than five thousand Food Club pilot customers indicates that 92% have reduced or ceased their reliance on food banks due to the availability of these loans. Moreover, approximately 71% of participants reported a decreased likelihood of falling behind on essential bills such as rent or council tax. Mental health benefits are also evident, with over half of the respondents feeling less stressed, anxious, or depressed about their finances.
The loan scheme is set to expand further, backed by a confirmed £2 million investment from Fair4All Finance. This funding aims to support the sustainable growth of the Iceland Food Club, allowing more families to benefit from its services. Simon Dukes, Chief Executive at Fair for You, highlights the importance of making life easier for customers who struggle to cover substantial grocery expenses but can manage smaller, interest-free loan repayments.
Furthermore, Iceland Foods is introducing additional money-saving offers to further assist families as they navigate the economic challenges of the new school term. The rollout of these offers underlines Iceland’s proactive approach to addressing customer concerns around living costs.
The Iceland Food Club continues to play a crucial role in supporting financially vulnerable families, illustrating the importance of ethical lending solutions.
