ICELAND will offer customers interest-free loans to help with their food shop amid soaring inflation.
The supermarket trialled the scheme in Huddersfield and Rhyl, Denbighshire, before rolling it out across Wales, where more than 500 customers used it.
Managing director Richard Walker said loans – provided by charity-owned lender Fair For You – would only be offered to those who can afford them.
The “real value” of pay fell by 3% from April to June, according to new data.
Repayments are set at £10 per week, with customers able to choose the day they are made and overpay if convenient to them.
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.
During the pilot phase, customers paid interest on loans, however Iceland have now decided to make all loans interest-free for the national roll-out.
Rhyl was initially included as a pilot area, before expanding across Wales, as over 500 Welsh customers used the loan service.
Iceland’s ‘food club’ has teamed-up with ethical lender ‘Fair for You’ to help customers purchase everyday items.
The frozen food provider also reported that this year 8.4 million people are going hungry, and 9 million families who receive benefits will be an average of £500 worse off due to inflation.
Successful applicants for the loan will receive a preloaded food club card within five to seven business days.
