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Struggling UK households to be offered interest-free loans to help with food bills

Supermarket group Iceland has teamed up with the charity-owned lender Fair For You to offer shoppers loans of between £25 and £100

Households struggling with the rising cost of living will be offered interest-free loans as a part of a scheme to help with food bills.

Supermarket group Iceland has teamed up with the charity-owned lender Fair For You to offer shoppers microloans of between £25 and £100 to buy everyday goods.

Shoppers who join the programme, called Iceland Food Club, can apply for an initial top-up of £25 to £75 on to their cards. Repayments are set at £10 per week.

The credit can be used in Iceland's nearly 1,000 stores or online.

A pilot of the scheme with more than 5,000 customers showed that 92% of customers who had previously used food banks had stopped or reduced their use, while 71% said they were less likely to fall behind on rent and other bills.

“This is about giving people a choice, and helping families avoid going hungry - compassionately and respectfully,” Iceland Foods managing director Richard Walker said on Twitter.

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