Iceland’s Food Club scheme has positively impacted over 23,000 families.
- The scheme provides interest-free microloans to financially vulnerable customers.
- Over £5 million has been lent through the initiative since its launch.
- The programme has alleviated reliance on food banks significantly.
- New funding of £2 million is set to expand the scheme further.
Iceland Foods has announced that its pioneering loan initiative, the Iceland Food Club, has successfully aided over 23,000 families since its inception last year. By offering interest-free microloans ranging from £25 to £100, the scheme targets financially vulnerable customers to help bridge income gaps without imposing additional financial burdens.
As part of Iceland’s broader ‘Doing it right: right now’ strategy, the scheme launched in August 2022 signifies a concerted effort to support community welfare. Marking its one-year anniversary, it has notably helped in feeding over 44,000 children during school holidays, an achievement underscored by widespread praise and positive feedback from users.
A partnership with Fair for You, a charity-owned lender, has been instrumental in this scheme, with a recent confirmation of additional funding amounting to £2 million from Fair4All Finance. This financing will fuel the project’s sustainable growth, potentially reaching more individuals in need.
Remarkably, pilot surveys indicate that 92% of users who previously relied on food banks have either stopped or reduced their necessity for such services. Moreover, almost three-quarters of the participants felt less pressure with household expenses like rent and council tax, as 71% reported reduced financial arrears.
Richard Walker, Iceland Foods’ Executive Chairman, stated, “We have seen the remarkable impact that the Iceland Food Club has had in supporting struggling customers through the cost-of-living crisis.” Simon Dukes, CEO at Fair For You, added insights into the necessity of such schemes, highlighting that a significant portion of UK households finds holiday periods financially challenging, lacking adequate savings for major expenses.
The scheme’s success resonates as Iceland Foods introduces additional cost-saving measures to meet parental concerns amidst rising living expenses, aligning with their commitment to community support.
The Iceland Food Club’s significant support to thousands underlines its role as a lifeline amid financial challenges for many UK families.
