Research by easyMoney has found that 59% of us will be making cutbacks this Christmas, as the high cost of living continues to stretch our household finances to breaking point.
A survey of UK households, commissioned by easyMoney, found that 64% of us usually compile an additional savings pot in the run up to Christmas to help with the increased cost of the holiday season.
Hardly surprising given that additional research found that in 2022, the average person spent £430 on Christmas gifts alone.
However, with the increased cost of living, this spend had reduced from £548 the previous year, as consumer price inflation spiralled to 9.2% in December 2021 versus 4.8% the previous year.
While inflation has eased in recent months, it remains considerably high at 6.3%, with many households continuing to struggle with the current cost of living.
As a result, easyMoney found that 55% of those surveyed have saved less than they had planned to when it comes to covering the cost of Christmas this year.
59% plan to reduce their Christmas spend in 2023 to help overcome the higher cost of living.
When it comes to where they plan to make cutbacks, buying fewer presents for wider family or friends was the main way they plan to make ends meet this Christmas.
Less social spending also ranked high, which means fewer Christmas drinks, trips to Christmas markets and pantomimes.
Less presents for immediate family also ranked high, followed by a cutback on our spend on alcohol, Christmas food and travelling to see loved ones.
Jason Ferrando, CEO of easyMoney said, “Christmas may be the most wonderful time of the year, but it’s also one of the most expensive, and the pressure to provide can put an incredible strain on our finances.
While inflation may have eased when compared to last year, many households are still struggling when it comes to putting enough by to cover the additional cost of Christmas.
What’s more, our previous research found that the majority of those who had accumulated a nest egg for a rainy day have already had to utilise it as a result of the cost of living crisis.
As a result, many are facing another tough December, having to make cutbacks on everything from presents, social outings and food and drink in order to make ends meet, without the safety net of previous savings to rely on.”
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