Since its launch last year, the Iceland Food Club has made a significant impact by assisting over 23,000 families through innovative financial support.
- This ethical credit initiative provides interest-free microloans, allowing customers to manage financial challenges effectively.
- The scheme is a part of Iceland’s broader strategy to foster community welfare and support vulnerable families.
- A robust partnership between Iceland Foods and Fair for You has been pivotal in delivering this financial aid efficiently.
- Survey results highlight a substantial decrease in food bank reliance and financial stress among participants.
Iceland’s loan scheme, known as the Iceland Food Club, has offered vital assistance to over 23,000 families since its inception last year. The initiative, which provides interest-free microloans ranging from £25 to £100, is designed to help financially vulnerable customers bridge income gaps effectively. This pioneering scheme aligns with Iceland’s ‘Doing it right: right now’ strategy, aimed at supporting communities in need.
Celebrating its one-year anniversary, the Iceland Food Club has also benefited over 44,000 children, ensuring they receive nutritious meals during school holidays. This initiative represents a successful collaboration between Iceland Foods and the charity-owned lender Fair for You, launched nationwide in August 2022. New funding from Fair4All Finance, up to £2 million, is set to drive further sustainable growth of the project.
Insights from a survey of over five thousand Food Club pilot customers reveal significant positive impacts. Notably, 92% of customers who previously utilised food banks have either stopped or reduced their dependence on them. Additionally, 71% indicate a reduced likelihood of falling behind on essential payments such as rent, council tax, or other bills. Furthermore, more than half of the respondents report feeling less stressed, anxious, or depressed about their financial situation.
Richard Walker, Executive Chairman of Iceland Foods, remarked on the transformative impact of the Iceland Food Club in aiding customers amid the cost-of-living crisis. He praised the partnership with Fair for You as one of the most innovative collaborations Iceland has undertaken, recognising it as a critical lifeline for families seeking affordable solutions for essential goods.
Simon Dukes, Chief Executive at Fair for You, highlighted the financial challenges faced by approximately a quarter of UK households, which possess less than £100 in savings. He expressed delight at the loan scheme’s ability to alleviate some of the pressures faced by families unable to afford large grocery shops, yet capable of managing small, interest-free loans repayable over weeks, thereby easing the financial burden during holidays.
The Iceland Food Club continues to play a crucial role in supporting financially vulnerable families, with plans for further expansion enabled by additional funding.
