With energy prices, food, fuel costs and inflation at historic highs, the cost of living crisis is forcing two-thirds (67%) of households to significantly reduce spending by an average of £269 with an average budget of £562, according to new research from Uswitch.com, the comparison service.
With the nation planning to slash £5 billion from their festive budgets, a fifth of households (22%) are choosing to change their traditions and not host Christmas this year, with a quarter (26%) deciding not to travel to see friends and family either.
The thought of a cut-price Christmas including presents, food and alcohol is also having an impact on the nation’s worries. Three-quarters (76%) of adults shared that the cost of hosting is a worry and two-fifths (43%) say it is seriously impacting their anxieties.
Despite the recent Energy Price Guarantee set by the Government, the cost of cooking and heating this Christmas is set to be significantly higher for most households.
Three-quarters of households (73%) have not budgeted for any additional spending this Christmas. Encouragingly, half (50%) are planning to change their cooking habits over the festive period to be more energy efficient.
To support households manage their energy usage and budget for the festive season, Uswitch has launched both the Utrack energy saving app and the Christmas Dinner Cooking Calculator to help them budget as well as provide tips on how to reduce the energy cost of their Christmas dinner.
Ben Gallizzi, energy expert at Uswitch.com, comments: “This year has been tough for many households across the UK as the cost-of-living crisis has gripped the nation’s finances.
“Understandably, many of us are feeling anxious about the looming cost of Christmas, with the average household looking to make significant cut-backs this year to save on their rising bills.
“While bills overall will be higher this year, there are still ways to save and reduce home energy consumption by adjusting your cooking habits this Christmas.
“Uswitch has launched Utrack, the free energy saving app, which will help households monitor and control their energy spending at home.
“For Brits looking to be savvier with their cooking techniques to save some energy should try the new Christmas Dinner Cost Calculator, which will tell you how much energy you can expect to consume, depending on the amount of people you’re hosting, the food you are planning to cook and how you plan to cook it.”