Iceland will offer customers interest-free loans to help with their food shop amid soaring inflation.
The frozen food giant’s new initiative, announced in partnership with charity lender Fair for You, allows customers to take out small loans on a pre-loaded card to cover their grocery shop – of up to £100.
Iceland has borough stores in Arnold and on Carlton Hill.
The scheme comes after a regional pilot trial, where it found 92% of customers using food banks previously had stopped or reduced their use of them.
Shoppers in the borough will be able to initially apply for a Food Club Card on Fair for You’s website which is pre-loaded with an amount of between £25 and £75.
For additional Iceland shops, further credit can be taken out. There is a total limit of £100 outstanding at any one time.
People on benefits can apply, as long as they have a stable, regular income and a bank account which they can make their repayments from.
Potential customers on the scheme can apply online and will receive a decision on their application during business hours.
MORE: Birds Bakery to open new store at Teal Park
Those who are successful will get a preloaded card within five to seven working days.
People can then use the balance on their card to shop in store or online at Iceland.
Repayments are set at £10 per week, with customers able to choose the day they are made and overpay if convenient to them.
Managing director Richard Walker said loans would only be offered to those who can afford them.
He said: ‘More than ever, people are struggling to purchase much needed everyday items during this relentless cost of living crisis, and fresh thinking is required by business and government to find workable solutions.’
“With Fair for You, we have rolled out Iceland Food Club to offer our customers even more support, helping them manage essential spending on their own terms.
‘To those striving to worry less about how they will afford essential goods, this ethical credit scheme delivers real help when most needed and I believe it will make a valuable contribution to breaking the cycle of food poverty in this country.’
The new scheme comes as the cost of living crisis has seen grocery bills surge at the fastest rate since 2008.
Inflation on groceries has spiked to 11.6 per cent of the four weeks to August 7, compared to 9.9 per cent in the month before.
According to research firm Kantar, this is equal to a £533 annual increase on a grocery bill for a UK household.
