Iceland to launch over-60s discount as cost of living soars

Iceland is to launch a new discount for shoppers who are over 60, as soaring prices hit household budgets.

The supermarket chain said it would offer over-60s 10% off every Tuesday to support its older customers through the cost of living crisis.

The move comes as supermarkets battle for customers, with prices rising at their fastest rate for 40 years.

Morrisons and Asda, which have been losing shoppers to discounters Aldi and Lidl, have already cut prices.

Grocery prices were 5.9% higher in April than a year ago, according to research company Kantar.

That figure was the biggest increase since December 2011, with supply chain issues, increased raw material costs and the war in Ukraine all contributing to rising food prices.

Iceland’s new discount will be launched from 24 May, with anyone aged 60 or over able to use it every Tuesday in-store at branches of Iceland and The Food Warehouse.

Shoppers will need to show proof of age, such as a driving license or senior bus or rail pass, and the discount will cover all products, with no minimum spend.

Iceland said it was the first UK supermarket to introduce such a discount and decided to do so after research by Age UK found three-quarters of older people in the UK were worried about the rising cost of living.

Last Christmas, Iceland also ran a regional trial offering £30 vouchers to those receiving state pension and the company said it was now exploring a national rollout ready for this summer.

Richard Walker, managing director at Iceland, said the chain had a “long history” of supporting older customers, including offering dedicated shopping hours for elderly and vulnerable people during the pandemic.

“The cost of living crisis has made support for these customers even more important, which is why I’m proud that we’re finding new ways to support them, including the launch of this discount. We hope it will help all those in this age category to cut costs where they can,” he said.

UK inflation – the rate at which prices rise – jumped to 9% in the 12 months to April, up from 7% in March.

The surge was driven by higher electricity and gas bills, after millions of people saw an unprecedented £700-a-year increase in energy costs last month.

Increased fuel and food costs also contributed, according to the Office for National Statistics.

Research from Kantar suggests shoppers are turning to discount retailers as pressure on budgets grows, with Aldi the fastest growing supermarket at the beginning of this year, followed by Lidl.

Many rivals have also cut their prices to compete.

In March Asda said it would bring out a budget range called “Just Essentials” in May.

Its announcement came after the supermarket was criticised by food poverty campaigner and chef Jack Monroe for raising the prices of its value products or removing them from some stores.

Meanwhile, last month Morrisons said it would offer an average 13% price cut on more than 500 goods.

Sainsbury’s also said it was trying to limit price increases despite facing higher costs from suppliers, lowering the prices of 150 of its most popular products.