Iceland has extended its interest-free “microloans” scheme for Christmas in a bid to help struggling customers.
The Food Club Loans Scheme, which is run in collaboration with online lending company Fair For You, allows shoppers to borrow up to £100 interest-free on a preloaded card which can be spent at Iceland or Food Warehouse stores. Standard repayments then sit at £10 a week, with users allowed to pay back more if they want.
Iceland Foods is stepping in to support families with the cost of Christmas with an expansion of its pioneering Food Club scheme. Delivered in partnership with the not-for-profit lender Fair For You, the scheme provides interest-free loans of up to £100—giving families the chance to spread the costs of stocking up for Christmas .
This announcement comes as an independent report from The Centre for Responsible Finance (CfRC) reveals the scheme has already helped thousands of families across the UK:
- Customers saved an estimated £2 million by avoiding high-interest credit
- 77% reduction in food bank usage.
- Nearly a quarter (22%) stopped cutting back their spending on essential items
- A fifth (18%) were no longer falling behind on rent or mortgage payments
- 18% say they have been better able to heat their homes in winter.
- A 74% drop in borrowing from illegal lenders.
- 71% improved their diets, with a 41% increase in families eating fruit at least three days a week.
Richard Walker, Executive Chairman of Iceland Foods, said:
“For many families, Christmas is shaping up to be one of the hardest in recent years. While other businesses have been very vocal in feeling sorry for themselves of late, Iceland decided that we need to roll up our sleeves and get on with the job of supporting our customers. The launch of the next phase of Food Club will help families afford a proper Christmas, giving them peace of mind and helping fight the scourge of predatory loan sharks and unregulated money lenders.”
Simon Dukes, CEO of Fair For You, added:
“Affordable credit changes lives, and this partnership with Iceland is proof of that. By expanding the Food Club this Christmas, we’re making sure families don’t have to choose between heating and eating this winter.”
Through the scheme, customers can borrow up to £100 interest-free, loaded onto a pre-paid card to use at Iceland or The Food Warehouse. Repayments are set at £10 per week, making it easier to spread the cost of essentials.
New customers can apply at any time for a Food Club card whilst returning customers can top up their cards from 16th December, so long as they are on track with repayments. The top up windows are a responsible way of lending so that customers don’t rely on microcredit on a rolling basis, but as additional support during peak shopping periods like school holidays.
Anyone can apply for the scheme, on the Fair for You website. If successful, credit can be used in-store and online using a preloaded card, allowing customers to stock up while spreading the costs.
Today’s announcement sees Iceland open the scheme again this Christmas and during school holidays throughout 2025.
