The average Brit will spend an estimated £291 less this year on Christmas as they deal with essential spending during the financial squeeze.

According to the LifeSearch Health, Wealth and Happiness Index, shoppers will spend £76 less on presents, £62 less on socialising and £59 less on experiences.

Meanwhile, they’ll shave £52 off food and drink and £41 on decorations. Collectively, Brits are expected to spend £12.5bn less this festive season.

Women are set to make the biggest Christmas cutbacks this year at £301 (£7.3bn) compared to men’s £266 (£5.2bn).

The life insurance broker revealed a quarter of women won’t be buying as many presents for their children compared to normal years, while half will be buying fewer gifts for their wider family, compared to 33% of men.

Elsewhere, while many are cutting back on Christmas spending, 7% of Brits plan to put more of their spending on credit, such as loans, credit cards and buy now, pay later, while 47% will be shopping more for bargains this year.

‘Less about spending this Christmas’

Lifesearch said these cutbacks “come as no surprise” as it found many Brits are “close to breaking point financially”.

It said the cost of essentials only need to go up by £128 per month on average for people to struggle financially in the months ahead.

However, women may reach their financial breaking point sooner as 71% think they will be worse off in the months ahead.

On average, they gave the figure of £352 per month, compared to men thinking they would be worse off by a lower £330 per month.

Further, a fifth of women think about the impact of the cost-of-living on their finances multiple times a day while a third said it’s on their mind daily.

Emma Walker, chief marketing officer at LifeSearch, said: “This winter looks set to be challenging for so many this year; aside of the stresses people face as a result of the rising cost of living, the pressures to spend over the festive period could also push many to their limits.

“Despite all the doom and gloom, we will all want to have an opportunity to celebrate and spend time with family and friends, but this year may be less about spending to the excess and more about value and keeping to a budget.”