Farepak fund donations total £7m

Farepak's collapse drew protests from savers who lost out

A total of £7m has been donated to the fund set up to compensate people who lost money in the collapse of the Farepak Christmas savings scheme.

Farepak Response said that £6.8m of the total had been distributed to agents in the form of vouchers.

A further £200,000 bought goods in the Farepak warehouse, which are being sent out by Home Delivery Network Limited.

About 150,000 people are estimated to have lost a total of up to £50m when the Christmas hamper firm collapsed.

Those affected should receive some 15 pence for every £1 they had saved, based on the response fund.

The number of vouchers issued will relate to the amount of cash individual members paid into the scheme.

Administrators who took over the running of the firm after its collapse expect to pay a further 4p or 5p for every £1, some time next year.

As well as donations from the public, a number of companies - including Tesco, HBOS and Scottish & Newcastle - contributed money to the scheme.