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 nearer its launch, but the society said it hoped the trust would set a new benchmark in consumer protection. Thousands of shoppers already used its existing £1 savings stamps scheme, it said.

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