You are here: Home - Household Bills - News -

Two-fifths of people plan to spend less this Christmas

Written by:
Just under two-fifths of people (38%) plan to spend less money on Christmas presents this year, a survey has found.


AJ Bell questioned 1,046 people and found the main reason for reduced spending this year was pressure on finances. Some 53% of respondents said they had less disposable income, while a quarter said they had agreed with family and friends to spend less.  

A tenth said they were already in debt, meaning they were less able to splash out over the holiday period. 

Just over half the respondents asked said they planned to spend the same amount of money this year, while 8% expect to spend more. 

For those planning to spend more, two-fifths said they had extra money to spare while a fifth wanted to make up for last year. 

Some 21% said the higher expense was because the prices of goods had gone up and 4% said they were under pressure from family and friends to spend.

The majority of respondents plan to fork out £100-250 on gifts this year, with 28% of respondents saying so. A quarter of people said they would spend between £251 and £500. 

Just over a tenth said they had not budgeted for Christmas. 

Laura Suter, head of personal finance at AJ Bell, said: “Rising prices and a crunch on many people’s income over the past year mean the UK is headed for a leaner Christmas than usual. Two-fifths of people plan to spend less on presents this Christmas than they did last year, with most saying their finances have been hit so they need to tighten the purse strings.

“Spending less coupled with rising prices causing the cost of each gift to go up, means that many people will have significantly fewer presents under their tree this year.  

She added: “It’s clear the effects of the pandemic are still being felt in many households, with cuts to income coupled with rising prices and bills meaning lots of people are feeling worse off than last year.”

“The best way to stop costs spiralling at Christmas is to set a budget and stick to it, whether that’s for presents or for the cost of entertaining.”

Five steps to stop your Christmas costs spiralling: 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week