Fair for You used the Recovery Loan Fund (RLF) to ensure it could keep up with high levels of demand for zero-interest loans through the Iceland Food Club scheme.
Social Impact
For households who struggle to access mainstream credit, an unexpected bill or a fridge or washing machine breaking can spell disaster. Set up in 2015, the social lender Fair for You provides these families an alternative to exploitative high-cost lenders, enabling them to avoid hardship and build their financial resilience.
Fair for You has partnered with retailer Iceland Foods to provide micro-loans of £25 to £100 ahead of school holidays, six times a year. Called Iceland Food Club, this programme supports families, particularly those receiving free school meals, to smooth out their income and put food on the table when the school term ends.
Following a successful regional pilot, Fair for You and Iceland expanded the scheme nationally in August 2022.
“
Iceland Food Club has made the school holidays a lot less stressful, knowing that there will be food in the house. It's helped me to budget better so we can go on day trips as a family; to the cinema, swimming, trampolining or the local farm. I’ve now also taken another Fair for You loan to get a new bed for my youngest who grew out of his cot, so we’re literally sleeping easier thanks to your support.”
Kay
Mother of three kids living in the North of England
How we helped
The national launch of the Iceland Food Club attracted significant media attention, leading to more than 50,000 applications being received within a week of the announcement.
Fair for You had anticipated strong demand for the scheme, but knew that it may have to access further funding to ensure it could meet demand. When it was clear that that was the case, it approached Social Investment Business.
“
Fair for You first received investment from the Social Investment Business a few years ago. When we approached them again last year, we were confident they would have a strong understanding of our business and of the social value we create. This was indeed the case - they were able to work quickly and collaboratively, and passionate about the difference they could make. Their investment has made a huge difference to the lives of thousands of parents, children and more, right across the UK.”
Simon Dukes
CEO of Fair for You
What was the outcome?
A loan from the Recovery Loan Fund allowed Fair for You to expand its onward lending facility, allowing an additional 5,000 people to join the Iceland Food Club. Nearly 25,000 people have had an affordable loan through the scheme since its creation.
Independent evaluation of the Iceland Food Club’s pilot programme showed that 92% of customers had stopped or reduced their food bank use; 71% of customers were less likely to fall behind on rent, council tax or other bills; 65% had improved their diet and 57% felt less ‘stressed, anxious or depressed’ about their finances. There was also a reduction of more than 80% in the number of customers using loan sharks.
Find out more about the Recovery Loan Fund.
