The Co-operative Group is launching a Christmas savings scheme trust in the new year to give consumers who want to save for Christmas greater protection, following the high-profile collapse of Farepak six years ago.

Full details of the scheme will be provided at the time of launch, but the society said it hoped the trust would set a new benchmark in consumer protection. It said thousands of shoppers already use its existing £1 savings stamps scheme in its stores.

Farepak’s demise hit nearly 120,000 people who lost an average of £400. The Co-op Group said it had worked closely with the Farepak Victims Committee, which was set up after Farepak went under, to set up the scheme.

“This is a massive step in the right direction and demonstrates how The Co-op is putting the customer at the heart of its business,” said Farepak Victims Committee secretary Deb Harvey.