Almost half of UK households will be cutting back this Christmas because of soaring costs, research has found.
As the country heads into a recession, research carried out by Which? shows 46% of consumers plan to spend less this festive season.
One woman told Which? "I can barely afford to support myself… why would I waste money on Christmas when I can use [it] to survive?”
Four in ten (41%) consumers said they plan to cut back by buying fewer gifts this year, whilst a third (33%) said they would buy cheaper gifts, and a quarter (26%) said they would take advantage of promotions or discounts to save money on gifts.
The money saving tactics went beyond gift buying, with three in 10 (30%) consumers saying they would buy cheaper or less food and drink to have at home over the Christmas period.
A quarter (23%) said they would simply stay at home more to save money.
Image:
Getty Images)Many households said the rising cost of living was the reason for reduced spending.
A 21-year-old woman from south west England said: “The cost of living is ridiculous. I can barely afford to support myself… why would I waste money on Christmas when I can use [it] to survive?”
Meanwhile a 27-year-old woman from the East Midlands said: “I have less spare money this Christmas than I would normally have. I have had to pay a number of large bills in the last few weeks…I think most of my family and those I celebrate Christmas with are in the same boat as well so it's a bit of an agreement that Christmas this year will be quieter and less frivolous.”
Hertfordshire resident Lisa-Anne Campbell has had to drastically cut back on her Christmas spend this year. Rising energy bills and food costs means that buying presents for friends and the wider family circle is no longer viable.
The 46-year-old has been putting money aside for the last few months so that her two young children do not go without.
Image:
Getty Images)Doing the Christmas food shop is also a worry, says Lisa-Anne. She has epilepsy and no longer drives.
Her nearest food shop within walking distance is a smaller convenience store, and it often does not stock budget ranges.
The Which? survey also found an estimated 2.2million households have missed or defaulted on a vital payment – such as a mortgage, rent, credit card or bill payment – in the last month.
This, says Which?, is an increase from the estimated 1.8million who missed payments in November 2021, showing that many who were coping financially last year are now struggling to make ends meet.
Just under six in ten (57%) people made at least one financial adjustment – such as cutting back on essentials, selling items or dipping into savings – in the last month to cover essential spending.
Rocio Concha, Which? director of policy and advocacy, said: "Our research has found that millions of households up and down the country are planning to cut back this Christmas due to the rising cost of living.
Image:
Getty Images/iStockphoto)“With prices only predicted to keep rising in 2023, Which? is calling on businesses to do all they can to support their customers through this extraordinary cost of living crisis.
"While government intervention is necessary, we also believe businesses across essential services can and should do more to help."
She said supermarkets in particular can play their part in helping customers "navigate the tough times ahead".
"Budget lines for healthy and affordable essential items need to be widely available across their stores and supermarkets should ensure shoppers can easily compare the price of products to get the best value. Promotions should be targeted at supporting those most in need.”
