Four thousand low-income families applied for loans to buy groceries in the first day of a credit fund opening for Christmas, food retailer Iceland has revealed.
The Iceland Food Club, which was launched in August, allows customers to apply for “affordable micro loans” between £25 and £100 on a pre-loaded card, which can be used in any Iceland or The Food Warehouse store. The loans are repaid at the rate of £10 a week, and are available in six annual windows coinciding with school holidays, when family finances are usually most stretched.
Iceland Foods’ managing director Richard Walker said was intended to tackle food insecurity, however, Simon Dukes, boss of Fair For You, the ethical loan company which has partnered with Iceland for the initiative, said the scheme is “not a silver bullet” for families battling food poverty.
