Iceland relaunches interest-free loans for customers to ease pressure on household budgets [Video]

ICELAND’S boss has said “food is too cheap” despite three years of rising prices during the cost-of-living crisis.

Richard Walker said the relaunch of its interest-free loans for customers to spend in-store was not because groceries are too expensive but due to wider pressures on household budgets.

Iceland set up its Food Club with charity Fair For You in 2020, and it has so far been used by 30,000 customers.

It has lent about £7million, which users pay back in weekly instalments.

Research shows that those taking part have reduced their reliance on food banks and loan sharks, and increased the amount of fruit and veg they buy.

Mr Walker told Sun Business: “I think it’s clear there’s something broken.

“Why are there more food banks than McDonald’s when we call ourselves a G7 economy? It doesn’t make sense.

“It’s not necessarily down to food prices.

“Food is too cheap in this country. Which might sound alarming, but …