42% of people dramatically cutting Christmas expenditure

As the cost-of-living crisis deepens, 42% of people will be "dramatically" cutting their spending this Christmas

Christmas always means extra costs for most households, but this year the pressure is on as the cost-of-living crisis means most have less disposable income to spend during the festive season.

A spokesman for KIS Finance explained: "At KIS Finance we've been examining the impact on spending habits by comparing the results from our Christmas spending survey four years ago to our current survey. Based on the results it looks as if people will be dramatically changing their spending patterns this year as prices soar.

"42% of people are planning to dramatically cut their normal Christmas spending, with many predicting they'll be halving their normal expenditure. With essentials like food, heating and fuel now accounting for a much greater proportion of disposable income, non-essential spending, including Christmas related items, are coming under increasing pressure."

How have Christmas spending patterns changed

Back in 2018 the average household additional spend at Christmas was £500. Back then some 23% planned to reduce their Christmas spending, primarily linked to concerns over the impact of Brexit and what it might mean to the economy. But overall, 60% still planned to spend their usual amount on celebrating Christmas and 15% planned to push the boat out and increase their usual spend, with 2% unsure of their plans.

But this year the picture looks vastly different. 42% are planning to cut their expenditure over the festive season compared to 2021, with many planning to dramatically cut the amount spent on food, gifts and celebrations. On average those looking to reduce their spending are expecting to do so by as much as 50% compared with previous years. This dramatic reduction is a clear reflection on the financial pressures many households face as we approach the festive season.

Does age influence Christmas spending?

He went on to say: "Four years ago we found as people got older their Christmas spending patterns became more consistent year on year, with 62% of those aged between 45 to 54, and 65% of over 55s planning to keep their expenditure the same as the previous year.

However, this year things look very different, with more people in each age group looking to reduce what they spend over the Christmas period. Only 43% of those age 45 to 54 and 45% of those over 55 are planning to stick to their normal Christmas budget this year.

"Four year ago we found only 25% of those aged 45 to 54, and 20% of those 55+ were planning to spend less. But these figures have risen noticeably this year, with 41% of those aged 45 to 54 and 43% of those 55+ planning to cut their budget for this Christmas. Clearly the cost-of-living crisis is hitting people of all ages and many are having to make some hard decisions this year to cut back on their festive spending."

For the full report please visit https://www.kisbridgingloans.co.uk/consumer-guides/what-will-the-british-public-be-spending-this-christmas.

(Image courtesy of ScouserUK and Pixabay)