Brits spend an average of £630 a year on gifts, excluding Christmas presents, for friends and family, according to research by Likely Loans.

According to the study, respondents felt most compelled to spend significant sums of money for weddings (£50), followed by significant birthday parties (£30), and baby showers (£30).

Almost half (47 per cent) of those polled admitted the gifts they receive will impact the amount they spend on others in return.

The study found that the average Brit purchases 28 gifts a year for family and loved ones (not including Christmas presents), with each item costing an average of £22.50.

Whilst almost three-quarters of Brits (72 per cent) preferred to purchase gifts using cash or their debit cards, 18 per cent said they rely on credit cards.

Likely Loans found one in five (21 per cent) people have a pact with their partners not to buy gifts for each other for anniversaries or birthday, instead preferring to spend the money on other items such as holidays and savings. A further one in three (32 per cent) said that their close friendship groups contribute towards a group gift instead of each buying a gift for each other for special occasions.

Additionally, almost half of Brits (48 per cent) said that once a friend or relative has children, they will only purchase gifts for the child and not the parents.

Claire Smith, head of marketing at Likely Loans, said: “If you have a large social circle of friends or a particularly large family, then there is no escaping that such occasions as birthdays, baby showers, anniversaries and christenings can total a significant amount of money each year, especially when you reach a certain age. Entering into a ‘present pact’ with a group of friends, your spouse or even your relatives with children can definitely come in handy when it comes to keeping the costs down and ensuring loved ones receive a gift they’ll truly appreciate, as opposed to numerous cheaper items.

“There are various other ways to keep costs down too; sometimes people just want your time, some people would really appreciate a handmade gift or for you to contribute towards the catering or decorating efforts. There are also online discounts from the majority of retailers these days, so you can always look to save a few pennies on a month when money is particularly tight. Don’t get into debt to please other people – life is too short and your friends and family would not want you struggling financially because of them.”